Many eco-minded motorists are turning to electric cars, also known as EVs. They save money on gas and the electric used to operate them is less expensive than gas-powered engines. Obtaining insurance on an EV is much the same as a traditional vehicle, but rates can be more expensive simply because the cost of repairing or replacing them if an accident should occur is more costly.
Insurance coverage can vary greatly for electric cars. At first, insurance companies had little data on which to base rates. Some insurers refused to issue coverage for the vehicles at all, which led to fewer options for owners. Combine that with traditional methods of determining insurance costs such as prior claims, driving record and credit score and insuring an EV can be confusing and complex.
The primary reason for more expensive insurance is the specialized and non-traditional equipment built into the vehicles. Some electric car manufacturers have lease agreements with battery suppliers that require the battery to be leased. Drivers may need to take out a separate policy for the battery in the event that it’s stolen or damaged, and some EVs are cheaper to insure than others.
One consideration that may not occur to most electric car buyers is how they’ll charge their electric car. It’s possible to install an at-home charging station, but it may also affect rates on home insurance. Individuals may need to purchase additional coverage. Before buying an electric car, it’s a good idea to obtain a quote from several different insurance carriers on car and home insurance.
Some companies have begun offering discounts of up to 5 percent as an incentive for insuring electric vehicles with them, while others say they’ll make a contribution to an environmental charity when a client chooses to insure through their agency. It pays for individuals to shop around when it comes to electric vehicles and their auto insurance.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
We can be found on Social Media at the following links.