Will electric car insurance cost more?

You can save money on gas, but your insurance premiums will be higher.

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Between rising gas prices and everything Affordable Electric Vehicles Coming in 2023, many consumers are considering EVs. And while your electric car saves you on the pump, low maintenanceEVs are more expensive to insure.

While this is gradually becoming less of an issue, electric car insurance is more expensive than people who actually consume a lot of gas. Even with the same car model, EVs and PHEVs are expensive. So don’t forget to consider EV insurance coverage when calculating your costs and finances.

Here’s what you need to know about electric car insurance and how to get your premiums down.

Why is electric car insurance so expensive?

wrecked tesla car

Several factors contribute to the cost of car insurance, but if your vehicle is electrified, your monthly costs will be higher. These factors include driving history, violations, accidents, billing history, age, driving experience, where you live, and the value of your vehicle.

As you know, electric cars are quite expensive. Expensive cars are usually more expensive to repair or replace, so insurance premiums are also higher. EVs are generally expensive to repair, especially if the battery is damaged. Not to mention dealing with expensive and specialized technical features.

Auto insurance companies, for example, know that electric vehicles are likely to cost more to repair or replace than traditional models. Additionally, many crash centers are not qualified to perform repairs on electric vehicles and may require sending the Tesla to a specialty shop or Tesla Authorized Center.

Depending on the model you buy, you may have to go to a specialty store. Usually, the labor cost per hour is higher. That extra cost goes to your wallet, not the insurance company.

what you can expect to pay

Mountain of money and electric car

Keep in mind that mileage may vary when it comes to car insurance. People, places, models, all providers are different.

According to June 2022 Reported by get jelly, electric vehicle owners can expect to pay about $56 more per month to insure their vehicles. This is an additional charge of $650 or more per year on insurance premiums. At first glance, that’s a sizeable difference, but some other reports suggest the price difference is lower. But EV owners spend more on car insurance.

Again, insurance prices and premiums vary by state, but according to bank rate, the average cost of auto insurance in the US is about $1,770 per year with full coverage. However, insuring an electric vehicle can quickly add up to over $2,200 per year (on average). That’s still over $40 a month.

Toyota Prius or plug-in hybrid electric vehicle It’s a little cheaper to insure than an all-electric car. Or, for example, a $45,000 EV is cheaper than a $90,000 Rivian R1T electric truck for full coverage. I’ve seen expensive electric cars insured for about $1,900 a year.

However, it goes without saying that the EV can receive tax benefits. Not to mention the immediate offsetting insurance difference on fuel and maintenance savings. Plus, it goes without saying, research different providers to find the best possible deal.

Can EV insurance be cheaper?

Rivian R1T electric truck

Insurance companies use all sorts of criteria and coverages when determining premiums and amounts to pay. Collision, all-inclusive, uninsured car insurance, etc. varies from company to company. Additionally, consumers can choose the level of protection for their particular situation.

We do not recommend choosing the lowest end insurance to save money, but there are ways to lower the cost of EV insurance. One is to get quotes from multiple insurance companies and compare what each offers. Many of the cheapest providers offer lower payouts for medical or uninsured drivers, so keep an eye out for that as well.

You will want to look for a provider that offers the best overall package, roadside assistance, rental protection and things of that nature. Fees can vary greatly.

That said, even if you decide on an insurance company, there may be ways to save money. You can increase your deductible and lower your premiums, but your out-of-pocket costs will be higher in the event of an accident.

You can choose insurance companies that offer discounts during installation. insurance tracking device or app. for example, Tesla has its own car insurance of Select State It rewards safe driving and lets you sign up and adjust policies right in the app.

Some insurance companies also offer discounts based on usage. Depending on how much you drive, you can save a lot on your monthly insurance policy.

And finally, don’t forget home and car insurance bundles, top student discounts for college students, and more. Finally, being able to pay premiums in full for 6 or 12 months instead of monthly could help offset the increase in EV.

Finally, it’s worth mentioning that with the rapid growth of electric vehicles on the market, prices are starting to be very competitive. As a result, we are gradually seeing electric car insurance premiums drop to prices similar to regular cars in some cases.

So while your premiums likely won’t change depending on where you live and what you drive, don’t be surprised if your monthly premiums go up a bit. Call your provider and find out today.

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