Electric car owners save on gas but may pay more for insurance.
Electric cars are environmentally friendly, plus you’ll save on gas and get a tax credit for your new purchase. But some of that extra money might have to go to insuring your new car.
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Compare insurance for your electric car
Why do electric cars cost more to insure?
Just like traditional car insurance, premiums are based on a number of factors, including the car’s value, age and performance, as well as the driver’s age, driving record and location.
Electric cars rely heavily on new technology, and are much more expensive to repair after an accident — the battery alone can cost upwards of $10,000 on some models. The repairs might also need to be carried out by specialist electric car mechanics, further upping the price — and consequently, the premiums.
Electric cars can also pose a greater risk to pedestrians who may fail to hear the quiet engine of an electric car approaching at slow speeds.
How to get cheap electric car insurance
To save on your insurance:
- Choose a coverage level that suits you. When it comes to car insurance, more isn’t always better. For example, if your car is worth $15,000, $30,000 of collision coverage would be too much — the maximum amount the insurer will pay out is the value of your car.
- Limit optional extras if you don’t need them. For example, new cars and some credit cards come with roadside assistance, so you won’t need to add it to your insurance policy.
- Increase your deductible. Agreeing to pay a bigger deductible could make your overall premium cheaper. But don’t agree to a deductible that’s more than you can afford to pay.
- Increase security. If your car is not currently fitted with an alarm, think about adding one to reduce your premium.
- Have a secure location to park your car. Cars kept in a garage or on a secure driveway are usually cheaper to insure.
- Limit your mileage. If you start working part-time or your long commute becomes much shorter, letting your insurer know about a reduction in your mileage could result in cheaper insurance for lower mileage.
- Avoid paying monthly. Some insurers will offer discounts to customers who pay annually.
- Limit modifications. Any modification made to your car to make it look better or drive faster are likely to increase your premiums, so think carefully before making any changes.
- Shop around. Shop around and compare your options to find the best deal — and shop around again when your policy is up instead of automatically renewing.
Thing to consider when insuring an electric car
Before choosing an insurer, look into whether you’ll be covered for:
- Special parts. Check to see if the special parts of your electric car, such as power cables and charging devices, are covered under your policy if they’re damaged and need to be replaced.
- Liability. As electric cars need to be plugged into a power source, you’ll need to be careful about where your charging power cables are positioned to ensure they don’t become a safety hazard for pedestrians. You’ll also want to check with your insurer to find out if your liability coverage extends to passengers who trip over charging cables when your car is parked.
- Genuine or OEM parts. Electric car batteries are not all the same, and if your battery is replaced with an aftermarket version, it could potentially decrease your range or have a shorter lifespan. Find out what kind of parts will be used if your car needs to be repaired after an accident.
How much is car insurance for electric cars
Thinking of getting an electric car but haven’t pulled the trigger yet? Compare insurance rates for some of the best electric cars available on the market.
Insurance rates for popular electric cars
| Electric car make & model | Average monthly insurance rate |
|---|---|
| BMW 3 Series | $178 |
| BMW i8 | $161 |
| Chevrolet Bolt EV | $238 |
| Honda Clarity | $197 |
| Kia Soul EV | $174 |
| Mitsubishi i-Miev | $187 |
| Nissan Leaf | $185 |
| Tesla Model S | $227 |
| Tesla Model X | $227 |
| Toyota Mirai | $220 |
Bottom line
More and more drivers are doing their bit for the environment by choosing to drive electric cars, but they’re still not the most popular or cheapest cars to insure. While you may save money in the long run by cutting gas out of your budget, expect to pay a little more for insurance.
You can cut your insurance costs down by comparing quotes from car insurers before choosing a policy.
Frequently asked questions about insuring electric cars
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