Getting Insurance for Your Electric Vehicle
Before purchasing an electric vehicle, you must carefully weigh the cost of electric car insurance. With higher purchasing and repair costs, electric car insurance rates can be higher than conventional vehicles. However, shopping around for the best car insurance and taking advantage of discounts and tax breaks can help you save money.
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UPDATED: Apr 19, 2022
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- Electric car insurance can be costlier due to less available risk assessment data and high repair costs for electric vehicles
- One way you can offset the high cost of electric car insurance is to make use of tax breaks
- While insurance providers usually don’t offer discounts for electric cars, you can still make use of other discounts if you shop around
Electric vehicles are becoming a popular choice for consumers looking to save on fuel costs or opt for a more environmentally friendly vehicle. However, when purchasing any type of vehicle, the cost of insurance is one of the primary concerns most people have.
Those shopping around for an electric vehicle commonly ask — is it cheaper to insure an electric car?
How much does it cost to insure an electric car?
Car insurance costs can feel like a bit of a mystery, but there are several factors that affect the cost. Things that affect the cost of car insurance include the type and age of the car, your driving habits, deductibles, and your personal circumstances.
While all of these things affect electric cars as well, there are other factors to take into account when purchasing an electric car. The higher purchase price, costlier maintenance, and batteries will all affect your premium.
The average car insurance for electric vehicles can range anywhere from $1,400 to almost $4,000 per year. Some examples of popular electric vehicle average annual rates include:
- Fiat 500c at $1,463
- Ford Focus at $1,633
- Toyota Prius at $1,740
- Hyundai Ioniq at $1,782
- Jaguar I-PACE at $1,841
- Tesla Model 3 at $2,283
- Tesla Model X at $3,324
- Tesla Model S at $3,082
These are just average yearly rates and your unique quote will depend on a variety of different circumstances. However, with car insurance for EVs varying so much, it’s important to carefully weigh your choice of car and research insurance costs before you purchase.
Are electric vehicles cheaper to insure than conventional cars?
In short, no. In most cases, electric vehicles are slightly more expensive to insure than conventional cars.
The reason electric cars are usually more expensive to insure is because of the higher costs associated. Not only are EVs more expensive to buy, they typically have higher repair costs and expensive batteries to maintain and replace.
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Who offers insurance for electric cars?
With electric vehicles becoming much more commonplace, more insurance providers are offering electric car insurance. Some of the top insurance companies to look at include:
- Liberty Mutual
- State Farm
The best thing to do is shop around and get quotes from different companies to get the best coverage and rates for you. Grab an auto insurance quote from us today to find the best insurance for electric cars.
Do insurance companies offer discounts for electric vehicles?
While most insurance companies don’t offer reduced electric car insurance rates or discounts for driving “green vehicles,” there are other discounts to look out for.
When shopping around for providers, take note of any discounts you can get for being a safe driver, having low mileage, being accident-free, having multiple cars, or by taking defensive driving lessons.
As a veteran or a current U.S. military member, some insurance companies offer special discounts on auto insurance. You may be able to qualify for discounts as high as 15%.
Get Savings With Tax Breaks
Another way to offset any extra electric car insurance costs is with tax breaks on the purchase price of the car.
The government wants more people driving environmentally-friendly vehicles, so you may be able to qualify for a Qualified Plug-In Electric Drive Motor Vehicle Credit.
Vehicles bought after December 2009 can qualify for a credit equal to $2,500. Additional credits can be added for vehicles fitted with a battery with at least 5-kilowatt hours of capacity. The total credit available for owning an electric vehicle is $7,500.
Is it more expensive to insure an electric car?
The bottom line is that yes, in most cases, it’s more expensive to insure an electric car. However, depending on your type of car and personal circumstances, you can find some savings.
Be sure to shop around at multiple different insurance providers to find the best electric car insurance for you, and take advantage of any discounts you are eligible for to keep costs down.