Tesla, Chevy Bolt, or a Nissan Leaf?

Are you buying an electric vehicle (EV)? 

There are a few things a new electric vehicle (EV) owners needs to consider.

 The electrical parts needed to fix electric vehicles (EVs) are expensive, and as a result, most auto insurance companies have to pay more out of pocket to get the vehicle repaired and back on the road. Complicating things further is the fact that there are not many well-trained EV auto mechanics and they are not well versed in how the electric drive trains work. EV car owners should take their EV to a specialty shop for repairs, and these shops have higher labor costs then traditionally trained auto mechanics. Because of this, insurance carriers charge owners of electric vehicles higher premium rates, but not on all the coverages of a typical auto insurance policy.

Collision and comprehensive coverage 

 Collision and comprehensive coverage are the two main coverages that protects the policyholder's owner’s vehicle if it is damaged due to an at-fault accident, a collision with a deer, a fallen tree, weather damage, and more. We now see owners of Evs have higher costs/premiums for collision and comprehensive insurance protection. New Electric vehicle owners can raise their deductibles ($1000) to lower their insurance premiums. This will result in larger out-of-pocket costs in the event of a claim. We might even suggest new EV owners setup an emergency fund to help offset the higher deductibles.

Liability to Others

Liability protection, which is what is required by state law, pays for medical costs and repairs for other people and their property if the auto policyholder causes the accident. Auto liability protection has nothing to do with the policyholder's own vehicle; the cost of this coverage is not normally affected by owning an electric vehicle.

Factors that affect EV insurance price

The type of car a driver (Electric vs. traditional gas-powered) has is only one of many factors that affects their auto insurance premiums. Auto insurance carriers also look at a driver's accident history, where you live according to the USPS ZIP code, how long you have been with your current insurance carrier, your education level, and your marital status, to assess the probability of a chargeable auto accident. Each insurance company weighs all these factors a little differently.

As electric vehicles become more common, the cost of insuring these vehicles will come down and the number of trained mechanics comfortable working and repairing the vehicles will increase. Once we get economies of scale, electric vehicles will not be as expensive to insure.

This is why you need to shop your auto insurance every a few years, especially if you are purchasing a new EV.

At Dtown Insurance we can help you review your auto coverages and premiums. Our team is available to help you compare auto insurance quotes from several insurance carriers to see which offers the best deal.

Remember, price is not everything, good support and service from Dtown Insurance tops any online insurance and 800 number! Contact us for help with your auto and home insurance!