Does it cost more to insure an electric car?

As electric cars become more popular, many potential owners wonder how much it’s going to cost to insure them. You might automatically assume that insuring an electric vehicle will set you back more than paying for regular car insurance, but the reality is a little more complex.

The cost of insuring an electric car: Here’s how it adds up.

How much does the electric vehicle cost?

In the market for an EV? You’ve probably already noticed that they’re often more expensive. As reported by U.S. News & World Report in 2023, the retail price of electric cars can go well above six figures for an SUV, pickup, or high-performance luxury vehicle.

That’s important because, since the price of the car affects the price of insurance, getting coverage for some electric cars can cost a lot more than for traditional gas-powered vehicles.

How much does the electric vehicle cost to repair?

Electric vehicles have unique parts and features that can cost more to repair or replace than those in gas-powered cars. Take, for example, your electric car’s battery pack: it can be way more expensive than the battery of your current car. Insurance companies take this into account when determining premiums. 

What about electric vehicle safety?

Everybody knows that electric cars are quieter than gasoline-powered cars, but the jury’s still out on whether this will affect the likelihood of accidents involving pedestrians or cyclists who might not hear the car coming. 

Some studies have found that electric cars can be more difficult for people to detect at low speeds, which could increase the risk of accidents — especially in urban areas where drivers might come into more direct contact with people crossing the street, distracted by looking at their mobile device or using noise-canceling headphones. 

Then there’s the factor of faster acceleration: electric cars can have an advantage in certain driving situations, such as merging onto highways or passing other vehicles. This can potentially help drivers avoid some auto accidents — but it’s important to note that faster acceleration can also lead to more reckless driving and speeding, which, as we all know, can increase the risk of accidents.

Still, based on recent reports, electric cars do appear to be safer or at least just as safe as regular gas vehicles. But what exactly about electric car safety makes them safer?

  • Fewer fires and explosions: Are the batteries in electric cars safe? Despite recent recalls for lithium-ion batteries found in electric vehicles, the risk of an explosion or fire due to these batteries is exaggerated. When compared to gas-powered cars, electric vehicles actually have a lower risk of fire because they are designed with insulated high-voltage lines and safety features that deactivate the electrical system when a collision is detected. 
  • Lower center of gravity: Also, because of how they are designed, electric vehicles have a lower center of gravity, meaning they are less likely to roll over in an accident. Your insurance company may take this into account when pricing your policy. 
  • Advanced tech: Many electric vehicles aren’t just advanced because they are electric, they’re also often equipped with many other advanced electric car safety features. These include automatic braking systems, lane assist features, collision alert systems, pedestrian detection, blind spot alerts, and high beam assist.  
  • Collision testing: Though electric cars have a lower center of gravity, they tend to be quite heavy. And during collision testing, this has shown that drivers and passengers are exposed to lower forces when an accident occurs. 

Plus, there are advanced safety features available in electric cars, many of which are also found in traditional gas-powered vehicles. These include:

  • Adaptive cruise control helps you stay safe on the road by using special cameras and sensors to adjust your car’s speed based on how much traffic is around you. It helps you keep a good distance from other cars, so you can avoid accidents.
  • If your car is about to crash into something, automatic emergency braking kicks in to help you stop in time. Sensors in the car can tell when a collision is about to happen, and the brakes will automatically apply to prevent or lessen the impact.
  • Lane departure warning makes sure you stay in your lane while driving. If you start to drift out of your lane without using your turn signal, the car will let you know so you can adjust your driving.
  • Depending on how your car is designed, you might have less than a 360-degree view. Blind spot monitoring uses sensors, so if another vehicle is approaching, you’ll be warned so you can safely change lanes.
  • Backing up can be tricky, but a rearview camera makes it much more manageable. You can see what’s behind you on a screen inside the car so that you can avoid any potential collisions.
  • If there’s someone in your path, pedestrian detection sensors can alert you so you can avoid hitting them.
  • Forward collision warning helps you avoid accidents by cautioning you if you’re getting too close to another car or object. If there’s a potential collision ahead, your car will let you know so you can slow down and stay safe.

Altogether, these advanced safety features in electric cars can help prevent accidents and keep drivers and passengers safe on the road — and that keeps insurance costs down.

Are there insurance discounts for electric cars?

There are some ways to lower the cost of insurance for electric cars. Since electric vehicles are typically considered more eco-friendly, some insurance companies offer discounts or incentives that could help reduce the insurance cost.

Consider universal factors in every auto insurance policy!

Auto insurance rates are typically determined by analyzing risk factors like accident rates, vehicle safety ratings, and repair costs. Some insurance providers may offer lower rates for electric cars due to their higher safety ratings and lower maintenance costs. However, what you end up paying to insure an electric car will depend on the make and model, how old you are,  your driving record, and which company you’re getting insurance from. 

Is an electric car in your future?

As electric cars become more prevalent on the roads, we can expect to see insurance policies and pricing continue to evolve. The increasing availability of charging stations throughout the United States will likely make electric cars more accessible and affordable for drivers, which could result in a greater demand for insurance coverage specific to electric vehicles. 

Additionally, with advancements in technology and greater consumer awareness of the benefits of electric cars, we may see insurance companies offering more specialized coverage options to better serve the needs of electric car owners. Overall, as the popularity of electric vehicles continues to grow, so too will the need for affordable and comprehensive insurance coverage.

Keep in mind that the specific coverage options and limits included in any auto insurance policy may vary depending on the insurer and the policy you choose. It’s a good idea to carefully review the policy details and consider your specific needs and risks before deciding on a policy.

Guided Solutions can help.

If that sound’s like a lot to remember, you came to the right place. To find the best insurance coverage and price for your needs, it’s a good idea to compare quotes from multiple providers. The experts at Guided Solutions can evaluate electric vehicle insurance offerings for you, compare available rates, and find a policy that fits your needs. 

Let’s get started.


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