Electric and Hybrid Cars — How Insurance Differs from Gas-Powered Vehicles
Your auto insurance is one of the major expenses involved with owning any type of car, whether it’s a high-tech hybrid or runs completely on gas or diesel. Hybrids and electric cars can have different coverage costs than gasoline vehicles, so it’s important to explore the ins and outs of electric vehicle insurance before you commit to buying an EV. Learning about how insurers look at EVs can help you make an informed decision about your next car while also keeping costs low.
The Insurance Landscape for Different Vehicle Types — EVs, Hybrids, and Gas
There are many factors that go into calculating your car’s premium, including the make, model, year, and engine type. Modern drivers can now choose from traditional gas engines, fully electric options, or hybrids that can use both gasoline and battery power. However, as these new options become more popular, the insurance landscape has started to transform.
Accounting for environmentally friendly vehicles is just another step in the evolution of car insurance. Just a few decades ago, the vast majority of cars had gas engines. While gas vehicles are still the most popular option today, electric and hybrid options are becoming much more widespread. Insurers have had to quickly learn how engine type impacts claim rates and average claim payouts.
If you’re considering which type of car engine to get and thinking about buying your first green vehicle, you probably have questions about how electric vehicle insurance works and how much it costs. Do I need special insurance for my EV? Do I need special insurance for my hybrid? And most importantly, is EV car insurance more expensive?
Dissecting the Cost of Insuring Electric Vehicles (EVs)
You don’t need special electric vehicle coverage for your car, but in many cases, an electric vehicle will be more expensive to insure than a gas-powered version of the same car. But why? There are a few factors that impact the cost of insuring your EV, most of which drive your rates up.
Value of the Car
Firstly, more expensive cars will simply cost more to insure, and EVs usually come with a premium price tag. If you get into an accident, your insurer will likely have to pay more for repairs or to recoup your total loss. EV batteries can be expensive to replace and repair, so even minor accidents could require a major payout from your insurer. Because the battery makes up such a large portion of the car’s value, EVs are more likely to be declared a total loss, making them more risky to insure.
Labor Costs
Along with the high replacement costs for EVs and their parts, it can be harder to find qualified mechanics. It takes specialized knowledge to be able to correctly repair an EV. Therefore, your insurer may have to pay premium prices for even basic repairs.
Average Mileage
Another factor you may not consider is the higher mileage associated with EV drivers. Getting an EV is a common tip to lower your gasoline bill, especially if you have a lengthy commute. This means that, in many cases, EV drivers rack up more miles per year than people who drive gas vehicles. If your yearly mileage is higher than average, you have a higher risk of getting into an accident, which can drive your electric vehicle insurance rate up.
Safety Rating
There is one silver lining that can offset some of the costs of insuring EVs. Because electric cars are more high-tech, they often come equipped with more safety features. If a certain make and model is known for having a high safety rating, insurers may offer a lower rate for that vehicle. So, even if your costs are initially a bit higher due to the electric powertrain, the safety rating of your car could bring them back down.
Hybrid Vehicles on the Insurance Radar
Are hybrid cars more expensive to insure? Hybrid cars are a middle ground between gas cars and EVs when it comes to costs. Because of their advanced tech, they’re more expensive than the average gas car. However, their batteries aren’t as big and complicated as the batteries for fully electric cars, so they’re usually less expensive than classic EVs. That means that hybrid car insurance will usually be a bit more expensive but not as pricey as a fully electric option. As hybrids become more common and cheaper to repair, it’s likely that policy prices will slowly start to decrease.
Traditional Gas Vehicles and Insurance Implications
Gas cars are usually cheaper to insure because they’re more affordable and cheaper to repair, but that doesn’t mean that every gas model is cheaper than every hybrid or EV. For example, if you get a brand-new sports car, it will likely have a higher premium than a standard hybrid. You’ll need to consider things like trim level, modifications, and the model year.
Identifying Discounts Specific to EVs and Hybrids
In some cases, you can offset the higher cost of insuring an EV with a green vehicle discount. Some insurers will give special discounts for hybrids and other eco-friendly options. When getting quotes for your next car, be sure to ask about specific discounts for environmentally friendly vehicles.
You should also look out for other discounts that may not be exclusive to eco-friendly cars. For example, you could get a discount for having an anti-theft device installed in your vehicle. While many gas-powered options also have anti-theft devices, they’re particularly common in high-tech hybrids and EVs. Pay attention to extra deals like bundle discounts and safe driver programs to lower your premium for electric vehicle insurance even more.
Drive Electric With Confidence — Get the Right Auto Insurance from Freeway
When shopping for insurance for electric cars vs gas, it’s important to be prepared for the extra cost. Electric vehicle insurance and hybrid vehicle insurance are often more expensive because of higher payouts and repair costs. However, you can lower your premiums by tapping into special discounts or choosing a green car with a high safety rating.
Regardless of the engine type you choose, you can get a great deal at Freeway. With Freeway’s wide range of discount programs, you’ll be able to get affordable coverage for any vehicle. Get your quote today at a Freeway Insurance office, call us at 800-777-5620, or visit us online to start saving on your environmentally friendly ride.
