Electric Car Insurance

As electric cars are becoming more and more popular, we’re here to help you understand the difference between insuring an electric car vs. a gas car and how much more it costs to insure.

Do electric vehicles have a higher insurance rate than gas-powered cars?

Yes and no. No matter if you have an electric vehicle or a gas-powered vehicle, your auto insurance rate is still calculated by various factors. Driving record, credit score, age, gender, and location are just a few. For example, electric car owners who are closer to a Tesla dealership are able to get better rates.

The only major difference if you are considering purchasing an electric vehicle is in the instance of collision coverage. The cost for your car insurance company to repair or replace parts and limited shops near your location that specialize in EV’s impact a higher insurance rate. As electric vehicles start to become more common, you may see comparable rates to a standard gas-powered vehicle in the near future.

When it comes to electric problems to the car, there are not too many products that are going to cover mechanical breakdown for electric cars or gas cars for that matter. Suppose you experience an electrical issue and drive a tesla for example. In that case, it will either fall under wear and tear or a warranty scenario but keep in mind that your auto insurance won’t necessarily cover that mechanical breakdown in most cases. However, if a tree falls on your car or is flooded, it will be covered. If you have collision coverage on your policy and get into an accident then you will be covered just like a gas car but as mentioned before, you may see a higher price for products and services for your electric car.

What is a beneficial to electric car owners?

1.    No gas payments, which helps save you money!

2.    You’re also helping to save the environment.

If I have a charging station at my house, will that affect my homeowner’s insurance?

What people don’t think about when it comes to electric vehicles and purchasing them, is where they will charge them. If I have a charging station at home will it affect my homeowner’s rate?

No, it will not impact your home insurance premium, but many new builder homes come standard with electric vehicle charging stations in the garage. That is something that we will start seeing more in new homes. If it is to affect homeowners’ insurance in the future, that is to be determined.