I have an electric car. What changes about my insurance?
Even though electric vehicles have been around for some time, they are still considered a bit exotic. Thankfully, with more people choosing to drive them each year, the cost of electric vehicle insurance is starting to come down.
With more EVs on the road, insurance companies are starting to become more competitive which means the prices of electric vehicle insurance are now in line with gasoline counterparts.
So how is electric car insurance different?
When it comes to car insurance, both insuring an electric vehicle and a gas vehicle require the same coverages. Just like regular coverage, an EV requires liability coverage and often electric vehicles are leased or financed which means comprehensive and collision coverage are often required by lenders. Since electric vehicles usually come with a higher price tag, the insurance is slightly more expensive.
Replacing an electric vehicle in case of an accident is sure to cost the insurers more than replacing a gas car but electric vehicle parts are usually more expensive to replace so minor incidents can easily impact the total cost of owning one.
What companies offer EV insurance?
The electric vehicle race has only just started among insurance companies. This is great news for customers, as it means that providers are always striving to provide the best service possible. Some of the companies currently offering electric vehicle insurance include:
- Travelers
- Progressive
- Allstate
- Nationwide
- State Farm
- Geico
- Farmers
Are there benefits to owning an electric vehicle?
Even though an electrical vehicle is usually more expensive to insure, see the benefits of owning an EV below.
Health and Environment - One of the most important benefits of owning an electric car is the environmental and health advantage it has over gasoline cars. Fully electric cars have zero tailpipe emissions, making them much more environmentally friendly. Tailpipe emissions are also harmful to both the environment and the driver and passengers. Especially for older vehicles, and ones with poor or outdated ventilation systems, the hazardous fumes can be found inside the vehicle, inflicting serious long-term damage to your lungs.
Maintenance costs - Electrical vehicles are significantly cheaper to maintain. With only a few moving parts, wear and tear is greatly reduced. Additionally, with the charger, inverter, and motor all in one unit, there is far less chance of something going wrong. In comparison, gas-powered cars have numerous moving parts that require regular maintenance.
Running costs - The benefits of powering an electric vehicle are significant. Depending on the prices of gasoline and electricity in your state, you can save a lot of money every year. In some cases, you could save up to $1,000 per year on your fuel costs. There are many great examples of this across the US, such as in California, Nevada, and Oregon. The savings can be anywhere from $1,000 to $13,000 over the lifetime of a standard battery.
How do I get insurance for my electric vehicle?
To make the process of transitioning to electric vehicles easier, it's a good idea to understand your options and have a professional review your insurance policy. At Luna, we've streamlined the process of comparing and purchasing insurance for electric vehicles. Our platform allows you to compare quotes from multiple insurance companies to ensure you get the best deal, and our licensed agents are available to help you optimize your policy. Our goal is to help you find an affordable insurance policy to protect your investment.
