Getting Insurance for Your Electric Car
Electric car insurance costs significantly more than standard car insurance. You can't expect a discount for owning an EV, but you can lower your electric car insurance rates by driving infrequently, practicing safe driving habits, and purchasing a common model. You may also be eligible for a tax break under IRS Code Section 30D.
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UPDATED: Mar 15, 2022
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- Electric car insurance costs more than regular car insurance because EVs are harder to make and repair
- Major insurance companies such as GEICO, Allstate, State Farm, and USAA offer EV insurance policies
- Save money on insurance costs by price-comparing, driving safely, and telling your company about factors that decrease your likelihood of getting in an accident
As concerns about pollution and car emissions get worse, many car owners are turning to electric vehicles. These cars draw their energy from batteries charged by electricity rather than fossil fuels.
If you’re thinking about buying an EV, you can count on saving money on gas. Still, most EVs cost more than standard cars because of their complicated energy systems.
EVs also tend to have higher insurance rates because they are more expensive to repair. With this insurance guide we’ll help you understand the factors behind your EV insurance rates and point out ways to save money on your electric car insurance policy.
How much does it cost to insure an electric car?
The exact cost of insuring an electric car varies based on your battery type, car cost, and driving history. Here’s how these factors that affect the price of car insurance.
Electric car insurance rates change based on the battery system in question. Most rely on nickel-metal hybrid, lithium-ion, or lead-acid batteries. Some EVs also come with ultracapacitors to help with steep inclines.
If your EV depends on standard power sources such as lithium-ion batteries, your vehicle is easier to repair, so you can expect lower rates for your car insurance. If your energy system is rarer or includes an ultracapacitor, your rates will probably be higher.
Similarly, the more expensive your EV, the more you can expect to pay for insurance. EVs with special features such as self-driving systems and parking assistance mechanisms have more complicated interiors. Just as they’re more pricy to buy, they’re more pricy to fix and insure.
As with standard car insurance, your driving history affects your premiums. Tickets, points on your license, and moving violations signal to your insurance company that you may drive less safely than other drivers.
Average Insurance Rates
Taking these factors into account, here are the average rates you can expect to pay at the top insurance companies:
|Company Name||Average Rates Per Month|
Are electric vehicles cheaper to insure than conventional cars?
The average electric car insurance cost is significantly higher than conventional car insurance. Most standard car owners pay between $60 and $75 per month for their insurance rates. For EVs, that number jumps to $150 per month.
This price discrepancy reflects how rare EVs still are. As they become more widely used and maintenance and part replacements get easier, insurance rates will probably go down.
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Who offers insurance for electric cars?
Most of the major car insurance brands also offer EV insurance:
Before you pick an insurance company, compare quotes from these companies and the ones listed in the chart above. Some may offer discounts for your specific model or factors such as your marital status, education level, and credit history.
The best insurance for electric cars isn’t always easy to find, and there is no one-size-fits-all answer. See what your options are by adding your ZIP code and vehicle information into our quote generator tool. That way, you can compare prices without calling insurance agents or visiting individual websites.
Do insurance companies offer discounts for electric vehicles?
Generally, you can’t get a discount on your insurance rates just for purchasing an EV. Still, many standard discounts apply to EVs.
If you own a home, you may get a discount on your EV insurance rates, especially if you sign up for a policy that bundles your auto and homeowner’s insurance. Owning a home suggests that you’re financially responsible and that you have the means to keep up with your plan.
The less time you spend on the road, the less likely you are to get in an accident. Infrequent driving cuts down your exposure to drunk drivers and other hazards on the road. It also means you’re less likely to be driving while fatigued or distracted, so you’re better able to pay attention to traffic.
First-time car insurance buyers are usually younger than experienced purchasers. They’ve just graduated from high school or college, so they’ve only been driving for a few years. As a result, they are more likely to be at fault in accidents. If you’re a more experienced driver with a clean record, you can expect a bigger discount than a younger driver.
Get Savings With Tax Breaks
Although it’s hard to find discounts for EV insurance, you may be able to qualify for a tax break. Under the Internal Revenue Service’s Code Section 30D, you can receive between $2,500 and $7,500 per year for owning an EV. This policy helps encourage Americans to purchase eco-friendly cars.
To qualify, you must have purchased your EV on January 1, 2010, or later. It must come from manufacturers approved by the IRS:
- Bentley Motors
- Audi of America
- American Honda Motor Company
- Electrical Vehicles International
- Toyota Motor Sales
If a company sells more than 200,000 EVs in the United States, cars from that manufacturer are no longer eligible for tax breaks. For example, Tesla and General Motors have sold too many EVs for the policy to apply.
Check Out Electric Car Insurance Quotes Tailored to Your Vehicle Today
Purchasing insurance for an EV is more expensive than for a standard car. Still, if you want to lower your carbon footprint and you’re willing to compare quotes, purchasing insurance for your electric car is simple and worth it.