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Dorchester Center, MA 02124
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Indeed, it costs more to insure an EV—specifically, $44 more per month on average—than a gas-powered car, according to the National Association of Insurance Commissioners (NAIC). Similarly, Insurify reports that EV car insurance premiums average $357 compared to $248 for gas-powered vehicles—a 44% increase.
Generally, expensive cars like sports and luxury vehicles have higher insurance premiums than more affordable vehicles like compact cars. Along these lines, EVs typically cost more than similar gas-powered cars, which is a significant reason why their insurance is more expensive. Perhaps as the cost of EVs drops, the disparity in insurance premiums will also shrink.
Several factors contribute to the higher cost of electric car insurance, such as:
Electric cars may be more expensive to insure, but their upsides may make them worth the investment.
Although EV insurance is usually more expensive, you can still lower your car insurance costs in the same ways you would with a traditional car.
The Insurance Information Institute (III) recommends getting at least three price quotes from different auto insurers, including your current one. Make sure you get quotes for similar coverage options and amounts to make sure you’re making apples-to-apples comparisons. If you find a lower rate with another provider, you can make the switch to reap the savings.
Many insurance companies offer discounts to EV drivers. Contact your insurer to see if they offer an alternative fuel discount or other green discounts. You may qualify for other car insurance discounts for bundling home and auto policies, insuring more than one vehicle, taking a defensive driving course and other methods.
Your car insurance deductible is the amount you’d have to pay out of pocket before your coverage pays the rest on a claim. You may be able to lower your car insurance premiums by raising your deductible since you’d be taking on more of the financial risk. Just make sure not to set the deductible so high that it would strain your finances if you have to file a claim.
If you’re financing your vehicle, your lender most likely requires you to carry both collision and comprehensive coverage. But if your car is paid off, and you can afford to replace it or repair it out of pocket, you might consider dropping those coverages to save money. If you have an older car worth less than a few thousand dollars, paying for repairs or replacement may make more financial sense than carrying full coverage car insurance.
Auto insurers set rates based on several factors, including the likelihood you’ll file a claim. So whether you drive a gas-powered or EV, maintaining a driving record free of accidents and traffic tickets may result in a lower risk score and, consequently, lower premiums.
Not all insurance companies offer specific policies for electric cars, but many do. It’s best to check with your provider to see if they have options tailored for EVs.
Yes, some insurance companies offer discounts for electric cars. These can include alternative fuel discounts or other green incentives.
Electric cars can be more expensive upfront, but they offer savings in fuel, maintenance, and potential tax credits.
Electric cars offer many benefits, but lower insurance premiums aren’t typically one of them. However, your insurance company may offer discounts for driving an electric or hybrid vehicle to make your policy more affordable.
Regardless of what type of car you drive, maintaining good credit could help you save on car insurance. Remember, most states allow car insurers to use a credit-based insurance score to help them set policy rates. If your credit scores are less than ideal, taking steps to improve your credit could lead to lower premiums. Get started by checking your credit report and scores for free with Experian, and addressing any items that could be dragging your score down.
For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you with the best mortgage solutions!
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