Electric vehicles (EVs) are all the rage these days. The promise of improving the environment while saving a buck just makes sense. And while it’s true that EVs produce zero emissions, the question of cost is proving to be more complicated than we thought.
Tax credits and government grants are offered to new EV buyers, but that’s not what we’re worried about. The ongoing insurance and maintenance costs of EVs are proving to be more expensive than those of a traditional car, and now we’re wondering if there is any actual cost savings.
While insurance companies are working to adapt to the growing popularity of EVs by offering specialized pricing, there are several potential cost differences compared to traditional car insurance that EV owners need to consider.
The Cost of Insuring Electric Vehicles
On average, you can expect an EV to cost more to insure than a gas-powered vehicle, though your rate ultimately depends on more than just your type of car. It also considers your driving record, age, gender, location, credit history, and coverage chosen.
There are several reasons why it costs more to insure an EV, and it’s not just because it’s electric instead of gas-powered. The reasoning behind the price difference actually makes a lot of sense.
Progressive stated, “Generally, higher-priced vehicles cost more to insure because they also cost more to repair or replace. Today’s electric vehicles also have fewer moving parts than conventional automobiles, but those parts can be pricey. If the battery pack is damaged, certain safety protocols are often necessary, adding more to the repair bill.”
Why Does It Cost More To Insure an EV?
First of all, EVs contain brand-new technology that can be more costly to repair than a traditional vehicle. And, since EVs tend to be more expensive than gas-powered cars, they are also more costly to replace, which understandably increases your comprehensive and collision coverage.
EV batteries are also a point of concern. These batteries are usually costly to replace and would be a significant expense if they required replacing. Limited part availability and lack of specialized repair shops also play into the cost increase.
The reality is that while EVs are rising in popularity, it will take auto part suppliers and mechanic shops a minute to catch up with the technology.