Lowdown On How To Insure An Electric Vehicle

Investing in an electric vehicle is an automotive right of passage. You’re committing to a greener and innovative way to drive, without sacrificing horsepower or style. What most buyers don’t know is the way to insure an electric vehicle is not much different than their gas-guzzling competitor.

Reports show that one in 40 new vehicles registered is now an all-electric model. With more options becoming available this year, buyers are easing into the decision of making an electric car their primary mode of transportation. The demand from last year to 2021 has increased significantly, which is why more drivers are beginning to learn about the responsibilities of owning an EV.

Read on to see how you can insure an electric vehicle without breaking the bank.

What factors affect how you can insure an electric vehicle?

Electric vehicles are generally more expensive to insure than your average conventional car. The reasons being are high sticker prices and costly repairs. Although EVs are becoming more widely accessible, the price of ownership might still cost you an arm and a leg.

Surprisingly, aside from the two reasons mentioned above, car insurance companies evaluate drivers using the same metrics they’d use for a gas-powered vehicle. This checklist includes:

• driving history
• age
• annual mileage
• optional coverage
• safety features

More often than not, your chosen insurance provider will factor you as a driver versus what car you drive. Safe drivers will experience lower premiums in comparison to those with a colorful driving record. Moreover, some insurers will give you more slack whereas others will lay down the law. It just depends on the quote being offered that day.

The good news is you can insure an electric vehicle without completely overpaying. After doing a little bit of research on an insurance comparison website, we found that most rates for electric vehicles averaged around $1,600-$2,800 per year. Of course, a number of factors will have an impact on the quote you receive. But this should give you a general idea.

If you’ve recently invested in your first EV, set some time aside to compare rates. There is no better way to save money on car insurance than shopping around and seeing what deals are out there, especially when you drive an electric vehicle. The more you can save, the better.

What companies insure an electric vehicle?

Most insurance providers write policies for electric vehicles. However, the rates will likely vary from provider to provider so it’s worth exploring all your options. You just might get a better deal by switching to a new company or you’ll find discounts that lower your current rate. The coverage that applies for a conventional vehicle will coincide with an electric vehicle as well. No matter if you contact Allstate or stick with GEICO’s low prices, each provider will factor in the same logistics.

This includes bodily injury coverage, liability coverage, collision coverage, comprehensive coverage, and other add-on policies like uninsured motorist coverage. Depending on your state law and driving history, the cost to insure an electric vehicle will come down to the type of electric vehicle you drive and the insurance provider itself. Tesla drivers take some of the biggest hits from insurance premiums in 2021.

If you so happen to be one of the many Tesla enthusiasts out there, check out Tesla Insurance (exclusively available in California). Many Tesla drivers have raved about their annual savings thanks to Tesla’s in-house policy. There is talk this insurance coverage will become available in Texas, Illinois, and Washington in the near future. As Musk has stated in the past, the process of granting approval for Tesla Insurance is long and taxing.

The regulatory process for approval to offer insurance is extremely slow & complex, varying considerably by state.

Tesla is hoping to offer real-time (based on actual driving history) insurance in Texas next month.

Probably next year before we get approval in New York.

— Elon Musk (@elonmusk) September 22, 2021

Bottom line

Those who are intimidated by becoming an EV driver have no need to worry. While yes, insurance premiums will be a bit higher than your average car, there are other ways to save. Just imagine all the gas expenses and oil changes you make during one year of ownership. Those all go away the moment you decide the electric lifestyle is for you.

Electric innovators are doing their magic to increase battery life as well. If you invest in an EV this year, research shows you could drive up to 10-15 years without thinking twice about your battery’s lifespan. The fundamental truth is that driving an electric vehicle will reduce your carbon footprint and completely change the way we view car ownership in the long-run.

Do you have more questions on how to insure an electric vehicle or what EV ownership is like? Take a look at our in-depth guide on electric vehicle tires.