Electric Car Insurance - Everything you need to know - Home & Auto Insurance Guide | Gabi

Electric vehicles have been around for some time, but they are still considered quite exotic.

Thankfully, with environmental awareness being on the rise, more people every year decide to put our, as well as our planet’s future, first.

Are you an electric vehicle owner? Or perhaps you are considering getting your first electric vehicle? We have great news for you. Now is the perfect time! 

Even though electric vehicle insurance tends to be slightly more expensive. With more EVs driving around, insurance companies are starting to be more competitive. This results in the prices of electric vehicles insurance starting to be more competitive, even nearing their gasoline counterparts.

How is electric car insurance different from regular auto insurance?

When it comes to insurance, both insuring an electric vehicle and a gas vehicle require the same coverages. Just like with regular coverage it requires liability coverage. Very often electric vehicles are leased or financed. In such a case the financing company will require some extra assurance like comprehensive and collision coverage. Making full coverage a must have.

The main factor which accounts for the higher price of electric vehicle insurance is its price. By default the more expensive the vehicle, the more we can expect to pay for insurance.

Replacing an electric vehicle in case of an accident is sure to cost the insurance company more than replacing it’s gas counterpart. Additionally, electric vehicle parts are more expensive and not as commonly acquired. Even minor incidents can be quite costly, damaging the battery alone can be a cost easily exceeding $15,000.

Do all companies offer EV insurance?

The electric vehicle race among insurance companies has only recently begun. Competition is always a good sign for customers. Service providers need to stay on top of their game, ensuring their product is high quality and price-efficient.

Some of the companies, currently offering insurance for electric vehicles include:

• Travelers
• Progressive
• Allstate
• Nationwide
• State Farm
• Geico
• Farmers

Some companies are moving faster than others when it comes to being environmentally aware. Travelers and Liberty Mutual offer special discounts for people insuring EV. Other companies are bound to follow in their footsteps sooner rather than later if they want their product to remain attractive.

Insuring your EV charging station

An important aspect of owning an electric vehicle is having the charging station equipped in your garage or outside the home. Charging stations have to comply with the local, state, and national regulations as per www.energy.gov. It’s worth checking with your agent or insurance company whether your charging equipment is covered by your home policy. Not all insurance companies include charging stations in their basic package so you might need to add this coverage separately.

Will your policy cover roadside assistance?

Roadside assistance for electric and gas vehicles often differs, requiring a specialized crew to be sent out in case things go south. Make sure your auto insurance covers your electric vehicle. In case of a technical emergency, you will be transported to the nearest charging station (towing electric vehicles is not advised. They do not have transmissions, meaning you can’t put them on neutral. Towing can therefore cause some serious damage to the engine). They might sometimes bring a mobile charging station with them, allowing them to charge your car on the spot.

What are the benefits of owning an electric vehicle?

Despite the fact that electric vehicles might be slightly more expensive to insure. There are numerous benefits which by far outweigh the extra insurance cost.

Health and Environment – The most important benefit of owning an electric vehicle is the environmental and health advantage it has over a gas vehicle. Fully electric vehicles have zero tailpipe emissions, making them much greener for the environment. Tailpipe emissions not only are harmful to the environment, but also for the driver and passengers. Especially for older vehicles, and ones with poor or outdated ventilation systems, the carcinogenic fumes can be found in the interior of the vehicle, causing serious damage to your lungs over time.

Maintenance Costs – Electrical vehicles are much cheaper to maintain. With only a few moving components, the wear and tear is reduced significantly. With the charger, the inverter, and the motor only, being responsible for the movement, there are only a few things that can possibly go wrong. Far less than with a traditional gas-powered car. 

Running costs – The costs of powering an electric vehicle are significantly lower. Depending on the prices of gasoline and electricity in your state, you can save as much as $1000 a year. Great examples of this can be found in west coast states, such as California, Nevada, and Oregon. Where savings can reach $12,000 – $13,000 in lifetime fuel cost savings for a standard battery.

How do I go about getting insurance for an electric vehicle?

Making sure your transition to the electric future is smooth can be quite a hassle. It’s always a good idea to know your options and have a professional review your policy. At Gabi, we have taken the insurance aspect of this hassle, disassembled it, and reassembled it in an organized manner. 

Our system allows you to compare dozens of different insurance companies, making sure you get the best deal out there, and our licensed agents are always there to help optimize your policy. Making sure your electric vehicle is not only environmentally friendly but also has a cost-efficient policy covering it!