Getting Insurance for Your Electric Car

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.

Battery Type

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.

Car Cost

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.

Driving History

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:

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.

Who offers insurance for electric cars?

Most of the major car insurance brands also offer EV insurance:

• Travelers
• Amica
• Auto-Owners
• Erie
• Nationwide

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.

Homeowner Status

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.

Driving Frequency

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.

Experienced Driver

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.