Is Electric Car Insurance More Expensive Than Gas Car Insurance?

With environmental goals and rising gas prices in mind, many motorists in the United States have switched to electric and hybrid vehicles in recent years. These automobiles can help owners cut down on their fuel costs while potentially helping reduce climate change. However, while electric vehicles may include exciting new features and opportunities, they also typically require a greater financial commitment, including insurance.

Why is Insurance More Expensive for Electric Cars?

Just because you’ve switched to an electric car doesn’t mean the rules no longer apply to you. Laws requiring auto insurance remain in effect regardless of your automobile type. However, while shopping for your electric car coverage, you might receive higher quotes than you did for your gas vehicle. This may be the case for the following reasons:

• Higher vehicle costs—Electric and hybrid vehicles are often significantly more expensive than their gas-powered counterparts. Given this higher replacement cost, you’ll typically need greater coverage limits, meaning more expensive premiums.

• Specialized components—These automobiles often include advanced features and programs that may not be present in older, gas vehicles. These parts and components can be costly to maintain, repair or replace, leading to higher claims costs that carriers must recoup through premiums.

• Scarce labor—Fewer shops and mechanics may be qualified to work on electric vehicles. This means that such professionals can potentially charge more for their services, resulting in more costly claims and, subsequently, higher rates.

• Increased risk—Electric vehicles may be more tempting to thieves and vandals than gas vehicles. As such, especially if you have comprehensive coverage in your auto policy, you may be seen as riskier to insure and potentially quoted higher prices.

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Contact Tropical Insurance of Manasota Inc in Bradenton, Florida, today to learn more about auto coverage or get a free and personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.