By Alex Neely on August 27, 2020 in Insurance Basics
Electric Car Insurance – What You Need to Know About Insuring your Electric Car
Electric cars are lucky enough to skip the dreaded gas station lines and gas prices; however, they are not off the hook when it comes to car insurance. While many aspects of insurance policies for both electric and gas vehicles tend to be the same, we want to call out some differences!
Electric Car Insurance Cost
Let’s break it down. Electric car insurance cost, that is. Although, we do support an electric dance move or two while you’re reading this. Insurance companies use several factors to estimate the likelihood you will have a claim. They rate you based on driving history, age, and more.
Whipping around in an electric car doesn’t mean you’re riskier on the road, but it may mean more expensive car insurance rates. Electric cars tend to be worth more than their gas-powered equivalents, so insurance rates can be slightly more expensive as a result. These vehicles come equipped with new, flashy technology and the promise of saving you money in the long run. Thus, a more expensive product! Car insurance helps preserves the value of your car when you need it, so vehicles that are more expensive tend to have higher rates.
Let’s compare the average car insurance rates of the Fiat 500X to the Maserati Quattroporte. The Zebra gives us the average insurance rates for each of these vehicles:
- Fiat 500X - $1,467/year
- Maserati Quattroporte - $4,742/year
The Fiat 500X’s average insurance rate is 5.9% of MSRP and the Maserati Quattroporte’s is 4.4% of MSRP. In case you’re unfamiliar with the abbreviation MSRP, it stands for “Manufacturer Suggested Retail Price” and is also known as the sticker price. So, while the Fiat’s is a higher percentage of the MSRP, it’s still cheaper in the end because the Maserati’s MSRP is significantly higher.
The Zebra gives additional credit for the higher rates to the “unique parts and service needs.” The parts are more niche simply due to the fact that electric cars are newer to the market! Additionally, these battery systems require specially trained mechanics, so service costs can also be higher.
Electric Car Insurance Discount
At Say, we prioritize doing our part to help the environment. It’s part of why we offer a Paperless Discount and encourage our customers to use digital ID cards! We don’t offer an electric car discount, but we don’t mind if your car is battery or gas-powered. Our discounts are available for all eligible drivers!
Some added incentives you may want to consider are state government tax credits and other savings for electric car buyers! While these are state-specific, they could shave a few bucks off your up-front cost.
So, what do you need to know? While electric and gas-powered cars require the same coverage, you might see higher rates with electric cars because of their MSRP. No need to fear, discounts and tax credits could help with car insurance and up-front costs!
Quick quiz! What’s MSRP stand for? If you said, “Manufacturer Suggested Retail Price” then you are correct. 50 brownie points to you!