Thinking about an Electric Car? READ THIS FIRST!
These days, everyone is looking to save a little money – and, if you can do it while also being good to the environment, it can be all the better. There has been a lot of talk over the past several years about electric cars, and especially regarding how much cheaper these vehicles are on fuel expenses. But one thing that many people wonder about is how much these vehicles cost to insure.
Over the past several years, it was actually somewhat difficult to find auto insurance for electric cars. Because these vehicles were still so new to the marketplace, many auto insurance companies were not yet prepared to offer coverage on them. However, over time, as electric vehicles have become more mainstream, so have the insurance policies to cover them.
The Cost of Coverage for Electric Vehicles
A study released in the fall of 2014 by CoverHound revealed that electric vehicles are actually cheaper to insure than vehicles powered by gas. On average, most electric vehicle owners can save in the neighborhood of $200 per year on their auto insurance coverage by moving from a gas-powered car to electric. In some cases, however, the savings could be closer to $600 annually.
This is a nice change from several years ago when some auto insurance companies would not insure electric vehicles. Now, as more information has become known about this type of transportation, more and more insurers are hopping on board with coverage.
Why Insurance Is Lower for Electric Vehicles Versus Gas
Both gas and electric vehicles tend to drive on the very same roads – so they essentially face the same potential dangers and risks in terms of accidents and moving violations. So why, then, is auto insurance cheaper for electric vehicles than those that are powered by gas?
One reason is that, for the most part, the price of auto insurance is largely still based on the driver, as well as the type of vehicle. Therefore – at least at the present time – most of the EVs that are on the road today are compact and not nearly as powerful as some of their gas-powered counterparts. This tends to make them safer, which in turn, equates to lower auto insurance premiums.
Vehicles that have the potential to go fast will have a much higher risk of being involved in a serious accident. This is because the driver has the ability to go at much higher speeds—becoming a danger not only to him- or herself but also to others.
It is important to note that while it is less expensive to insure electric powered vehicles today, as these vehicles evolve over time, and potentially become faster and more powerful, the lower priced auto insurance may or may not always be the case.
Individual electric car owners should, just like all other potential auto insurance buyers, shop around for several different quotes, prior to making a purchase. This is because the actual cost of auto coverage will typically depend on the specific vehicle that’s being insured.
For example, because electric cars are still a relative newcomer to the marketplace, certain parts may be more difficult to find if the vehicle needs repair – and this could potentially raise the cost of insurance coverage for that specific vehicle. With this in mind, it’s best to obtain several competing quotes before moving forward.
Additional Savings Opportunities by Going Electric
In addition to saving on auto insurance, drivers who switch from gas-powered to electric powered vehicles could also save in other areas as well. For example, fuel costs can be reduced – in some cases, significantly – depending on the type of vehicle that was formerly owned.
Electric vehicles may also offer a lower overall cost of ownership. While the initial sticker price may be comparatively more than a similar gas powered auto, there are numerous rebates available to purchasers of these vehicles.
Also, an EV will have fewer parts that need ongoing servicing than will a gasoline powered car – so the owner of an electric auto typically won’t need to worry about repairing or replacing items such as the clutch, alternator, spark plugs, fuel pump, or belts – because these aren’t even part of an electric vehicle’s power train.
The Future for Electric Vehicles
As electric vehicles have made their way into the mainstream, they may see more and more everyday uses. For example, one area where you may see them more frequently is in the world of law enforcement.
Recently, the Los Angeles Police Department tested electric motorcycles. Not only can these save the department on its fuel costs, but are they are also much more quiet than the department’s current gas powered Harley models. This feature can have numerous benefits.
Tech giants Apple and Samsung are both rumored to be working on the design and build of an electric car. Apple’s goal is to begin production of its EV (iCar?) by 2020.