Just like different people have different preferences for cars, auto insurance companies also have different rates for different people. More than a dozen factors affect the rates of your auto insurance policies, and the type of car you drive is one of the most impactful factors.
The type and make of your car decide the auto insurance and premium rates. The condition and age of the vehicle, along with any other aftermarket modifications, also affect the insurance rates. But what about the new and advanced electric vehicles?
The number of electric cars has been increasing, and there is no stopping. So how much more do electric vehicle owners pay for insurance policies, and why? Why is it that electric cars are more expensive to insure compared to traditional gas cars? Let’s find out.
How Much More Does Electric Car Insurance Cost?
Ever since the rise in popularity of electric cars, the rates of car insurance policies for almost all-electric car models have increased. This price difference can range anywhere from 15% to a whopping 50%.
This means that it could cost you 50% more to buy car insurance policies for some electric can than what you’d pay for the auto insurance policies for standard gas cars. This is not the case for all-electric vehicles, but only a few where other factors seep in as well.
The type and make of the electric car is a deciding factor in the insurance rates. For example, suppose you are looking at a low-cost electric vehicle such as the Hyundai Kona, which is a sub-compact, affordable electric car. In that case, the yearly insurance rate could range anywhere between $1,200 to $1,400.
This price is a ballpark figure. Your driving record, past insurance claims, and other internal factors can increase or decrease insurance rates. But for most people, this is the price range. But Kona is one of the most affordable electric cars in the US.
As the price of the car increases or the brand changes, the insurance rates also increase. For example, Nissan Leaf, which is slightly more expensive than Hyundai Kona, can cost you as much as $1,500 for auto insurance policies. The rates rise progressively.
Premium Electric Cars
Premium electric cars that cost more will require you to spend more on auto insurance policies. The premium electric car range is dominated mainly by three or four brands. Tesla, BMW, Audi, and Porsche are the most prominent players in the premium electric car segment.
There’s no doubt that Tesla is the only brand that comes to mind when someone thinks of a premium electric car brand. Unfortunately, insurance for Tesla models is also very expensive. Some Tesla cars are one of the most expensive electric cars to insure.
Insurance for Tesla Model 3 will cost you the least, at around $1,800 a year. The Tesla Model S is the most expensive to insure. You might end up paying upwards of $3,000 a year to get an insurance policy for this car. Model X is not far behind, costing you around $2,900 a year.
Porsche Taycan, which is considered the supercar of electric cars, is genuinely a supercar in terms of insurance price as well. It can cost you almost $3,600 to insure this fast and sleek electric supercar.
The bottom line is that while dozens of factors can affect your car insurance rates, an electric car can cost you $300 – $400 more to insure than a gas car. But why do auto insurance companies charge you more for electric vehicles?
Why Does Electric Car Insurance Cost More?
Auto insurance companies decide the rates of policies based on many factors. When it comes to the make and model of the car, they have to consider the costs of repairs, spare parts, the risk of a car getting damaged, how easy it is for some parts of the vehicle to get damaged, how likely it is to get stolen, and a lot of other factors.
Here are some of the reasons why auto insurers charge more to insure electric cars:
Gas cars are made up of hundreds of small parts. Multiple parts can be salvaged or repaired from the piston to the combustion pipe in case the car gets into an accident. But electric cars are usually one giant hunk. The chassis sits on a large battery pack and a motor. So the chances of an electric car getting totaled are much higher than a gas car.
While the affordability of electric cars is increasing, being the cutting edge of fairly new technology, buying a gas car is still more affordable than an electric one. This price difference is also a significant factor in the increased insurance rates of electric vehicles.
There are a lot of internal factors that can affect insurance rates. For example, Florida is one of the most expensive states regarding car insurance. In addition, labor costs, land costs, taxes, etc., are important factors in insurance rates.
Make sure you search for the best car insurance policies specific to states. For example, if you live in California, look for the cheapest auto insurance quotes in California to get the best rates and great auto insurance coverage.
Electric cars are expensive, but repairing these cars also costs a fortune. In addition, the high fidelity of their design requires these cars to carry expensive parts, most of which are usually connected to the entire body design.
For example, replacing the windshield of a gas car (cheap hatchback) would cost you around $200-$300. Replacing the windshield of a Tesla can cost you up to $1,000. This explains the high auto insurance rates for Tesla cars.
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