Electric car insurance is becoming increasingly popular, but the costs, companies, and ways to save money associated with it remain a question for many.
Are electric vehicles more expensive to insure than conventional cars? Which companies offer the cheapest insurance for electric cars?
In this blog, we’ll answer these questions and provide you with easy tips to understand the cost of electric car insurance, explore options from top companies, and save money. If you’re considering insuring vehicles like the Tesla Model S, Nissan Leaf, or Chevrolet Bolt, this article is for you.
Understanding Electric Car Insurance Costs
The cost of electric car insurance depends on the make and model of the car. For example, the monthly insurance premium for the Volkswagen ID.4 is $241, while it can reach $522 for premium models like the Tesla Model X.
Models like the Ford Mustang Mach-E ($291) and Hyundai Ioniq 5 ($303) are mid-range options. Premiums increase due to advanced technology, battery systems, and limited availability of repairs.
However, choosing the right insurance company and availing features like green discounts can help you manage these expenses.
Electric Car Insurance Cost by Model:
| Model | Monthly Cost |
|---|---|
| Volkswagen ID.4 | $241 |
| Ford F-150 Lightning | $251 |
| Chevrolet Bolt EUV | $274 |
| Ford Mustang Mach-E | $291 |
| Hyundai Ioniq 5 | $303 |
| BMW I4 eDrive 35 | $335 |
| Rivian R1S | $357 |
| Tesla Model Y | $374 |
| Tesla Model 3 | $422 |
| Tesla Model X | $522 |
Is Car Insurance Higher for Electric Vehicles?
Yes, electric vehicles can be more expensive to insure than traditional gasoline cars. The main reason for this is the high purchase price and repair cost of electric cars. For example, premium electric cars like the Tesla Model S have advanced technology and battery systems that can be expensive to repair.
Additionally, the availability of parts for electric cars is also limited, which increases repair costs. However, some insurance companies also offer affordable plans to encourage electric car owners.
Why Do Electric Cars Cost More to Insure?
- Advanced Technology and Battery System: The batteries and technical components used in electric cars are expensive, and their repairs require expertise.
- High Replacement Cost: Replacement of battery systems is much more expensive than conventional engines, which increases insurance costs.
- Limited Expertise and Parts: The availability of trained mechanics and parts to repair electric cars is limited, which increases repair costs.
EV Insurance Rates What You Need to Know
- Average Premium Rates: The average cost of electric car insurance in the US can range from $1,500-$2,000 per year, depending on the vehicle model and insurance company.
- Company Based Differences: Companies like Progressive and Geico offer competitive rates for electric cars. Companies like Tesla also offer their own insurance programs that offer customized coverage options.
- Discount Options: Some companies offer Green Vehicle Discounts, which may reduce the premium cost.
Cheapest Car Insurance Companies for Electric Cars
Choosing the right company for electric car insurance can help reduce your premium costs. State Farm ($201/month) and American Family ($241/month) are among the most affordable options, while Progressive ($297/month) and Geico ($327/month) offer better coverage.
Allstate ($404/month) and Farmers ($552/month) are expensive options. It is always beneficial to compare the plans as per your needs and budget.
| Insurer | Monthly Cost |
|---|---|
| State Farm | $201 |
| American Family | $241 |
| Progressive | $297 |
| Geico | $327 |
| Allstate | $404 |
| Farmers | $552 |
What About Tesla Insurance?
Tesla Insurance is a unique option for electric vehicle owners, designed specifically for Tesla models. It is offered directly by Tesla, making the premium cost more transparent and accurate than other companies.
Premium rates are set to take into account Tesla’s advanced safety features and automated driving systems. Its benefits include customized coverage, faster claims processing and potential discounts.
However, it is not available in all states, and coverage options may be limited compared to other insurance companies.
How to Save Money on Electric Car Insurance
Maintain a clean driving record, take advantage of green vehicle discounts, and compare policies from different companies to reduce the cost of electric car insurance. Choose a higher deductible and install safety devices. These practical measures can effectively reduce your premium costs.
Are There Ways to Reduce Electric Car Insurance Costs?
Yes, the cost of electric car insurance can be reduced effectively. Here are some key tips:
- Maintain a clean driving record: Your better driving record may lead to insurance companies offering discounts.
- Avail Discounts: Select plans like green vehicle, multi-policy, and pay-per-mile.
- Compare Premiums: Compare policies from companies like Progressive, Geico and State Farm.
Practical Tips to Reduce EV Insurance Premium
- Choose a Higher Deductible: This can lower your monthly premium.
- Install Safety Devices: Cars with advanced safety features get discounts.
- Review the Policy: Review your insurance plan from time to time and choose a better option.
- Make Annual Payments: Paying the premium in one go instead of monthly can result in discounts.
Popular Electric Cars and Their Insurance Considerations
Insurance for electric cars can vary depending on their cost, technology, and safety features. From premium cars like the Tesla Model S and Model Here are the insurance costs for these popular models and tips for choosing the right plan.
Tesla Model S and Model X
Luxury cars like the Tesla Model S and Tesla Model S premiums can range from $1,766 (USAA) to $4,923 (Farmers), while Model X premiums range from $1,798 (State Farm) to $4,603 (Farmers). Choosing the right insurance company and plan can help reduce your expenses.
Insurance Costs for Tesla Model S and Model X
| Company | Model S Premium (Annual) | Model X Premium (Annual) |
|---|---|---|
| Allstate | $4,759 | $3,781 |
| GEICO | $3,291 | $2,970 |
| Farmers | $4,923 | $4,603 |
| Liberty Mutual | $3,100 | $3,316 |
| Nationwide | $2,145 | $2,069 |
| Progressive | $2,299 | $2,011 |
| State Farm | $2,397 | $1,798 |
| USAA | $1,766 | $2,131 |
Mitsubishi i-MiEV Insurance Insights
The Mitsubishi i-MiEV is an affordable electric car, and its insurance costs are also relatively low. USAA ($1,117) and Liberty Mutual ($1,350) are its most affordable insurance options.
On the other hand, Allstate ($2,359) and Progressive ($2,016) have higher premiums. It is important to compare offers from different companies to select the right insurance plan.
| Company | Annual Premium |
|---|---|
| Allstate | $2,359 |
| GEICO | $1,608 |
| Farmers | $1,836 |
| Liberty Mutual | $1,350 |
| Nationwide | $1,500 |
| Progressive | $2,016 |
| State Farm | $1,443 |
| USAA | $1,117 |
Insurance cost of Nissan Leaf and Chevrolet Bolt
The insurance cost of both Nissan Leaf and Chevrolet Bolt depends on their model, repair cost and the policies of the insurance companies.
The lowest premiums for the Nissan Leaf are at USAA ($1,158) and Nationwide ($1,359), while the most affordable options for the Chevrolet Bolt are USAA ($1,289) and State Farm ($1,647). Allstate and Progressive’s rates are higher for both of these models.
| Company | Nissan Leaf Premium (Annual) | Chevy Bolt Premium (Annual) |
|---|---|---|
| Allstate | $2,393 | $2,672 |
| GEICO | $1,461 | $2,017 |
| Farmers | $1,769 | $1,830 |
| Liberty Mutual | $1,685 | $1,873 |
| Nationwide | $1,359 | $1,796 |
| Progressive | $1,796 | $2,044 |
| State Farm | $1,456 | $1,647 |
| USAA | $1,158 | $1,289 |
Conclusion
Understanding the cost of electric car insurance, choosing the right company, and ways to save money can make it easier to manage your expenses.
Whether you own a premium car like the Tesla Model S or an affordable model like the Mitsubishi i-MiEV, each vehicle has different insurance requirements. Using the tips and information shared in this post, you can choose the right insurance plan and reduce your costs.