For the high-end buyer especially, electric cars have become all the rage. Not only does owning and operating an electric car give one a sense of environmental responsibility, but they save a tremendous amount in fuel costs. You no longer need visit the gas station to fill up a tank, but rather plug into a charging station either at home or at one of the remote kinds that are cropping up around the country as EVs become more numerous.
Insuring Electric Car
However, insuring an electric vehicle is likely, at least for the time being, to be more expensive than for their gas-powered siblings. Nerdwallet recently did a survey of electric cars and similar gas-powered vehicles and found that the former tended to cost more in insurance premiums. The survey did not touch upon cars such as the Tesla, but they tend to be more expensive to insure as well. Why is this?
First, electric cars on the average tend to be more expensive than the gas-powered kind. Electric cars tend to be equipped with a lot of cutting-edge technology. Also, they have not yet achieved economies of scale in production that more conventional vehicles running on gasoline tend to have. If your EV is totaled in an accident, it is more expensive to replace.
Second, electric cars may be easier to repair because they do not have a lot of complicated cooling and transmission systems, but they are still more expensive to fix. The replacement cost for the lithium-ion batteries can be hefty indeed.
The good news, in the long run, is that electric vehicles are likely to come down in price soon. EVs are likely to be competitive in price with the gasoline versions by the mid-2020s. That fact plus more data on the cost of repairing or replacing electric vehicles will likely drive down the cost of insuring them.
If you would to like to discuss your options for car insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.