Electric vehicles like those made by Tesla and Volkswagen, are seeing high demand in 2020. With the demand, it’s possible that Insurance sales will likely comprise 3% of all global auto sales by the end of 2020. In the interim, the usual gas-powered vehicles will rescind by 15% over the same amount of time.
Car owners can probably give some more money for electric cars but does a higher price tag lead to higher car insurance costs?
Comparison sites usually like to contrast insurance companies with their fees and rates. Overall costs are pretty important.
These comparisons include fees and rates. That way, overall costs can be kept down. But then comes to mind the question on everyone’s minds.
Are electric vehicles more expensive for insurance?
Drivers are taking plug-in vehicles by the hordes, with some financial outages being evident to electric vehicles. Car insurance costs are at the top.
For example, according to Self Financial, electric vehicles (EVs) fare badly when you measure them against gas-fueled vehicles.
Electric vehicles can be up to $442 more costly than usual insurance.
This makes sense when the average yearly cost for gas cars are $1,232, compared to $1,674 per year for their greener counterparts
Gas cars in the U.S. are $3,356 to run per year on gasoline, meanwhile, electric vehicles are only $2,722.
David Harlow, managing director at pH Innovate, an insurance technology firm based in Pontypool, Wales had this to say. “To date, electric cars are more expensive to insure than fossil fuel-based vehicles.”
Additionally, repairs on electric vehicles cost a lot more than fossil-fuel-based vehicles. “That’s primarily due to the availability of vehicle parts from manufacturers,” Harlow said.
How to reduce the cost of your insurance for electric cars
- Focus on electric car-based “green driving”
- Shop for rates with quotes
- Work on the existing car provider
- Factor them to your electric car costs