Electric Cars Facts

Archive for the ‘Electric Cars Insurance’ Category

Government tax credits and incentives are an excellent way to cut down on costs with your electric vehicle, but it’s also notable to look into the reductions through insurance agencies. Electric insurance coverage, however, is quite different than standard auto insurance in a number of ways.

First of all, it would be helpful to evaluate how motor vehicle organizations appraise the value of your EV as well as how they assess the risk variable. Most major insurers at the moment are still learning about the ins and outs of green car insurance. Thus, their guidelines may not be as concrete as their well-established gas-powered car coverage. Simply put, the best way to find the cheapest and most reliable EV insurance is to obtain an insurer that has the most experience with EVs—not necessarily the cheapest rates or the most popular company.

Scrutinize your electric car or truck’s value. Your EV may not be worth as much as a long-lasting internal combustion vehicle simply due to its battery. Changing its package could cost two to three times more of getting a secondhand electric car model. In addition, cross cars and trucks tend to be a bit more high-priced right now than other vehicles because they are a newer technology and considered a hot, rare commodity.

State Farm reports that while insurance rates for the category of electric vehicles has yet to be confirmed, auto insurance costs for hybrids are already well-established. In general, an EV insurance premium will depend on the following variables: collision damage, damage theft, and liability rating.

A price reduction with electric insurance policies can help you spend less when compared with a different organization’s insurance policy application. Just be sure to also ask for additional discounts. With a reduced operating expense, the entire running expense of an EV is typically 20% of a gas motor vehicle. In a five year insurance plan, it is almost certain that you’ll be spending less if you have an EV compared to a gas-powered vehicle.

Where does coverage for electric car insurance begin and end? It’s important to know the outline of your policy, what’s covered, and what isn’t. Electric auto insurance is different than the conventional type because the former is much more environmentally friendly. Because of this, most insurance companies will offer a discount on the premium you pay. And, since EVs give automakers a more credible and admirable public image, insurance companies know that they’ll be less likely to settle car accident claims, which means a saving for them  as well as for you.

Buying electric car insurance is a lot different than buying insurance for a regular car. But, just like buying regular insurance, don’t overlook the fine print and mistakenly give up a discount that was yours to begin with. When you purchase EV insurance, you’ll essentially be paying a lower premium than usual, and your driving record is likely to be cleaner.

All car insurance rates are built on risk profiles. The lack of long term crash data on EVs naturally raises their standing in the risk category, so you might want to talk to your local insurance agent about how to mitigate this. Consider a “pay as you drive” policy if you are a driver who routinely uses mass transit or alternative forms of transportation. These policies can lower your premium almost by half.

You also might want to think about having all of your insurance policies (home, life, health, and auto) with one company. Just like a bundle package for you Internet, cable TV, and landline, a bundled insurance package may lower premiums across the board. It would also make it much more convenient when having to deal with bill payments and would condense your paperwork.

It is also recommended that you pay for your EV insurance six months at a time. Companies typically charge about $60 for processing statements a year, so this is a good way to chip away at costs on a smaller scale.

To find the right electric auto insurance to fit your needs, it is essential that you shop around and do you research before committing to any type of paperwork. All major insurance companies have websites where you can get a free quote to eyeball the rates. You’ll also have access to additional information, such as services, local offices, contact information, and premium packages. Before talking to an agent on the phone or in person, give the company’s website a brief look over.

Can you share any additional tips for those who are looking into electric car insurance?

Q: Will my current car insurer cover my new electric car?

A: Most car insurance companies nowadays offer coverage for hybrid cars. However, not very many mainstream providers offer a premium package for fully electric vehicles. As EVs become increasingly popular, this will most likely change in the next couple of years. For now, it’s recommended to seek coverage through a specialist, such as the company PlugInsure.

Q: Ok then, who insures my car’s battery?

A: This depends on the insurance policy you have. Some electric car owners lease their batteries, but experts argue against this, saying that it makes your insurance plan more unnecessarily complex. Instead, talk directly to your insurance company to establish a deal. Your battery is probably the most valuable asset of your EV, so be sure to know who is taking care of it so you won’t have to worry about costs if something happens.

Q: Is it cheaper to insure an electric car than other vehicles?

A: At this point, yes. The U.S. government in particular is offering grants of up to $7,500 for consumers who purchase an electric car. However, you’ll also have to take into consideration that electric cars require specialist repair work since they are fairly new to the market. It is highly recommended that you obtain a variety of car insurance quotes as you do your EV research. In London, for example, EVs are exempt from vehicle tax and congestion charges. The same may very well apply to states in the U.S., especially those with many heavily populated cities.

Q: Should I even purchase an electric car with all of these different car insurance traits?

A: If maintained correctly, electric cars will save you a whole lot of money because they are cheaper to run. While most travel a distance of 40 to 70 miles before requiring a recharge, the federal government is currently offering huge subsidies and incentives for those who’d like to invest in an EV. You would be also making a significant effort in fostering an eco-friendly society.