Electric cars are environmentally friendly and equipped with modern technology, but have you wondered why their insurance costs exceed traditional cars? If you are looking for cheap electric car insurance, this guide will help you.
In this post, we will discuss the cost of electric car insurance, the cheapest insurance providers and the best ways to reduce premiums.
Also, you will also know how to save from measures such as bundling, safe driving apps and eco-friendly discounts. Read the article till the end for complete information!
Understanding Electric Car Insurance Costs
Electric vehicles (EVS) have increased popularity, but their insurance cost may be higher than gasoline cars. This difference depends on many factors, such as vehicle value, repair cost, battery technology and risk calculation of insurance companies.
Since the parts of electric cars are expensive and require special technical knowledge to repair them, insurance companies put more premiums on them. However, EV owners can get cheap electric car insurance by adopting some strategies.
This section will inform you about effective ways to understand and reduce electric car insurance costs deeply and reduce it.
Why is Electric Car Insurance More Expensive?
There are many reasons for electric car insurance being expensive, including:
- High cost of the vehicle: Electric cars are expensive than traditional gasoline cars, which also leads their insurance costs.
- Repair and cost of parts: EVS batteries and other components repair are expensive, especially if the battery is damaged.
- Shortage of expert repair centers: Not all auto repair shops can repair electric cars, which increases the cost.
- Fire and accident risk: EVs are more at risk of fire due to problems related to battery, which can lead to higher insurance premiums.
- Risk assessment of insurance companies: Due to new technology and limited data of electric cars, insurance companies can consider EVS as more risky, increasing rates.
However, EV owners can avail several discounts (eg eco-friendly discounts, safe driving apps, etc.) to get cheap electric car insurance.
Electric Car Insurance Rates vs. Gas Cars
There is considerable difference in insurance costs of electric cars and gasoline cars. Typically, electric cars are expensive, but their insurance rates may vary to each model. For example, the insurance premium of Tesla Model 3 is $ 293 per month, which is more than the gasoline car BMW 330i ($ 269).
However, some electric cars such as Chevroolet Equinox Ev ($ 162) and Volkswagen Id.4 ($ 192) come with relatively low insurance rates. The data below suggests that there is a difference in premium based on the type of car, repair cost and insurance provider.
| Vehicle | Power Source | Monthly Rate |
|---|---|---|
| Audi A5 | Hybrid | $276 |
| Audi Q4 E-Tron Premium | Electric | $219 |
| Audi Q5 Quattro | Gas | $248 |
| BMW 330i | Gas | $269 |
| BMW I4 eDrive 35 | Electric | $265 |
| Cadillac LYRIQ | Electric | $225 |
| Cadillac XT6 | Gas | $248 |
| Chevrolet Equinox | Gas | $191 |
| Chevrolet Equinox EV | Electric | $162 |
| Ford Escape | Gas | $182 |
| Volkswagen ID.4 | Electric | $192 |
| Volkswagen Atlas | Gas | $193 |
| Toyota RAV4 Hybrid | Hybrid | $202 |
| Toyota Prius | Hybrid | $222 |
| Toyota Camry | Gas | $213 |
| Tesla Model Y | Electric | $277 |
| Tesla Model 3 | Electric | $293 |
| Rivian R1S | Electric | $281 |
| Polestar 2 | Electric | $239 |
| Nissan Leaf | Electric | $194 |
| Nissan Altima | Gas | $228 |
| Mercedes-Benz C300 | Hybrid | $276 |
| Lexus NX 350h | Hybrid | $227 |
| Lexus NX 350 | Gas | $227 |
| Kia Telluride | Gas | $202 |
| Kia EV6 | Electric | $211 |
| Hyundai Tucson Hybrid | Hybrid | $203 |
| Hyundai Tucson | Gas | $193 |
| Hyundai Palisade | Gas | $200 |
| Hyundai Ioniq 5 | Electric | $210 |
| Honda CR-V Sport Hybrid | Hybrid | $189 |
| Honda CR-V | Gas | $182 |
| Ford Mustang Mach-E | Electric | $206 |
| Ford Mustang | Gas | $243 |
| Ford F-150 XL | Gas | $185 |
| Ford F-150 Lightning XLT | Electric | $215 |
| Cadillac XT6 | Gas | $248 |
| Cadillac LYRIQ | Electric | $225 |
| BMW I4 eDrive 35 | Electric | $265 |
| BMW 330i | Gas | $269 |
| Audi Q5 Quattro | Gas | $248 |
| Audi Q4 E-Tron Premium | Electric | $219 |
| Audi A5 | Hybrid | $276 |
This table indicates that the insurance cost of some electric cars is higher than gasoline cars, but the premium rates of some models may also be relatively low. To get cheap electric car insurance, it is necessary to pay attention to vehicle models, safety features and insurance discounts.
Cheapest Electric Car Insurance Providers
With the increasing popularity of electric cars, insurance costs have also become an important subject. Many insurance companies are now providing special schemes and discounts for EV owners, making them cheap electric car insurance.
However, it is important to choose the correct insurance provider as premium rates can change according to vehicle models, locations, driving history and policies of insurance companies. In this section, we will tell you which provider provides the cheapest electric car insurance, and which companies are the most competitive.
Who Has the Cheapest Electric Car Insurance?
If you are searching the cheapest electric car insurance, Erie Insurance is currently one of the most economical options, which has average monthly premium rate of $ 168. This is followed by Auto-Owners ($ 180/Month) and Travelers ($ 183/Month) in the cheapest options.
Cheapest Auto Insurance Companies for Electric Cars
The table below has monthly insurance rates and ratings of various electric car insurance providers.
| Company | Monthly Rate ($) | LendingTree Score |
|---|---|---|
| Erie | $168 | ⭐⭐⭐⭐ (4.125) |
| Auto-Owners | $180 | ⭐⭐⭐⭐⭐ (4.8025) |
| Travelers | $183 | ⭐⭐⭐⭐✨ (4.381) |
| AAA | $211 | ⭐⭐✨ (2.38) |
| State Farm | $220 | ⭐⭐⭐⭐✨ (4.498) |
| Geico | $221 | ⭐⭐⭐✨ (3.697) |
| Progressive | $275 | ⭐⭐⭐⭐ (3.847) |
How to Get Auto Insurance for an Electric Car
It is necessary to choose the right insurance scheme for electric cars owners, as electric car insurance costs may be higher than traditional gasoline cars.
While purchasing insurance, it is important to understand how electric car insurance providers set premiums and how much insurance fee is levied on what type of vehicle. In this section, we will discuss insurance costs and insurance rates of various cars according to the type of vehicle, so that you can get cheap electric car insurance.
Auto Insurance Costs by Vehicle Type
The insurance costs of electric, hybrid and gasoline cars vary, as each type of vehicle repair costs, risk factor and aspects evaluated by insurance companies vary. The average insurance cost of electric cars is $ 228 per month, higher than that of hybrid ($ 225) and gasoline cars ($ 219).
The main reason for this is expensive repair and limited repair centers of EV batteries. However, the average insurance cost of all types of vehicles is $ 223. Cheap electric car insurance can be obtained by choosing the right insurance provider and taking advantage of exemption.
| Vehicle Type | Monthly Rate ($) |
|---|---|
| Electric Cars | $228 |
| Hybrids | $225 |
| Average All Vehicles | $223 |
| Gas Cars | $219 |
How to Save on Electric Car Insurance
Insurance costs for electric cars may be higher than traditional gasoline vehicles, but by adopting the right strategies you can get cheap electric car insurance. Insurance providers provide several types of discounts and plans, using which premium rates can be reduced.
Strategies such as bundling, safe driving apps, eco-friendly discounts, military and other special discounts, and deductables can help control your insurance expenses. In this section, we will discuss the major methods from which you can reduce electric car insurance costs.
Bundle Your Insurance
If you already have home insurance, Rentors insurance, or another vehicle insurance policy, you can get cheap electric car insurance by bundling them with the same insurance provider. Insurance companies often provide multi-political discounts, which can reduce your total insurance costs.
Bundling not only reduces your premium cost, but it makes it easier for you to manage different policies. Many insurance providers offer discounts of 10% to 25% on home and auto insurance bundles.
Insurance companies like State Farm, Geico, and Progressive provide such discounts. If you want to reduce your insurance cost, bundling can be an easy and effective way.
Consider a Safe Driving App
Many insurance companies offer Usage-Based Insurance (UBI) or telematics programs, in which your driving habits are tracked. If you drive safely and your driving habits are good, you can reduce your electric car insurance cost.
Insurance companies monitor your vehicle speed, braking pattern and driving frequency through specially designed safe driving apps.
If you do not apply rapid brakes, follow the speed limit and do safe driving, insurance companies can give a discount of 5% to 30% on your premium. Programs like Allstate’s DriveWise, Progressive’s Snapshot and Geico’s Driveeasy provide such discounts.
Eco-Friendly Discounts
Electric cars are environmentally friendly, and many insurance companies provide EV owners green or eco-friendly discounts. This discount is offered to customers who use electric or hybrid vehicles and contribute to reducing pollution.
If you want to get cheap electric car insurance, taking advantage of eco-friendly discount can be a good option. Many insurance companies offer exemptions ranging from 5% to 10% to owners of electric and hybrid vehicles. Companies such as Travelers, Farmers, and State Farm offer green vehicle discounts.
In addition, some insurance providers also offer discounts to customers who choose paperless policy or pay their premiums through automatic payment. This can reduce your cost even more.
Military and Affinity Discounts
If you are a member of the military or a specific professional organization, you can get special discounts on electric car insurance costs. Companies such as Usaa, Geico, and Farmers offer special insurance plans for military and other special groups.
Usaa insurance company is the best option for people working in the army, retired military personnel and their families, providing special insurance discounts to military members.
In addition, some insurance companies also provide discounts to professionals such as federal employees, teachers, engineers, doctors, and nurses. If you fall into this category, ask your insurance provider about the army and reduce your electric car insurance premium.
Increase Your Deductibles
To reduce insurance costs can be a smart strategy to increase deductable. Didctable is the amount that you have to pay yourself before a claim. If you choose a high deductable, your monthly insurance cost may be reduced.
For example, if the deductable of your existing policy is $ 500 and you increase it to $ 1,000, your monthly premium may be reduced by 10% to 20%. However, you have to keep in mind that in case of an accident you have to be ready to spend more than before.
If you do not driving too much and the risk of accidents is low, it can be a good way to get cheap electric car insurance.
Conclusion
The cost of electric car insurance may be higher than traditional vehicles, but with correct strategies and providers, you can get cheap electric car insurance.
We have discussed the best ways of electric car insurance costs, cheap insurance providers, and savings in this post. You can reduce your insurance premium by adopting strategies such as bundling, safe driving apps, eco-friendly discounts, and high deductable.