When determining premiums, insurance companies consider a number of factors, one of which is the number of claims that have been settled for vehicles with comparable characteristics. If, for instance, the model of your electric vehicle has a history of claims that were either particularly costly or often filed, the insurance premiums for all owners of the model will normally be higher.
It is anticipated that in the not-too-distant future, consumer demand and government initiatives targeted at combating climate change will drive a fast acceleration in the uptake of electric automobiles throughout the world. Electric transportation is unquestionably the mode of transportation of the future.
However, this transition will result in a significant shift in risk for all parties involved, including manufacturers, suppliers, and insurers, and it will have a significant effect on automotive product liability insurance.
The following are some of the reasons why the insurance premiums for electric automobiles may be higher:
The cost to repair or replace electric components is often higher than the cost to repair or replace their non-electric counterparts. According to a survey by a company that supplies data to the automotive, collision repair, and insurance sectors, the cost of replacement components for electric vehicles (EVs) is 2.7% more than the cost of replacement parts for vehicles fueled by gasoline.
Battery packs for electric vehicles.
A company that offers information and services for consumers looking to purchase electric vehicles, the price to repair a broken battery in an electric vehicle may vary anywhere from $5,000 to $15,000.
Higher cost of repairs.
Because of the particular skills necessary to repair electric vehicles, some facilities may charge higher rates for repairs.
The vast majority of automobile insurance providers will normally cover an electric vehicle for their customers. You’ll be able to get the primary forms of automobile insurance, such as liability, collision, and comprehensive coverage, which is similar to the process of purchasing insurance for a vehicle driven by gasoline.
There are several insurance firms that provide discounts to customers who drive electric vehicles. Depending on the firm, this may be referred to as a “green vehicle discount” or an “alternative fuel discount.”
Here are some ways you may save costs on the insurance for your electric vehicle if you are planning to get one.
Compare your options.
Comparing the rates offered by many auto insurance providers is the most effective strategy to cut costs and save money.
Put in a request for a discount.
Discounts for driving safely, maintaining a high-grade point average in school, and combining auto and house insurance might provide even greater savings than the green vehicle and alternative fuel discounts offered by certain insurers.
Consider signing up for a plan that charges you based on how far you drive.
If you just use your electric vehicle for local errands, you may find that an insurance policy that charges you based on the number of miles driven is the most cost-effective option for you.
Get rewarded for safe driving.
Utilization-based insurance is a program that monitors safe driving habits such as speed, cornering, forceful braking, and phone use. If you are a safe driver, you may wish to take advantage of this service offered by your insurance provider.
Meet Krishnaprasath Krishnamoorthy, a finance content writer with a wealth of knowledge and experience in the insurance, mortgage, taxation, law, and real estate industries.