Understanding the Insurance Costs for Electric Cars

WU staff | News | September 21, 2017
Understanding the Insurance Costs for Electric Cars

While Sacramento auto insurance agents can help you find out how much you can expect to pay to ensure an electric car, you can do some preliminary digging on your own.

Changing Times, Changing Prices

In the past when electric cars were new, most insurance companies didn’t provide coverage policies for them. Now that more information about electric cars is easily available, insurance companies are more willing to insure them. That being said, you’ll more than likely pay more in insurance if you have an electric vehicle. This makes sense, considering the fact that it’s often more expensive to buy an electric car than it is a gas-powered vehicle. Know that how much more you can expect to pay varies according to your insurance provider, so be sure to shop around.

You Can Cut Your Costs

While you’re likely to find it more expensive to insure an electric car, there are things you can do to reduce the cost of insurance, much like you can with the insurance cost of a gas-powered vehicle. One of the best things you can do is prove you’re a safe driver. This means avoiding getting traffic tickets, DUIs and moving violations. While there’s no guarantee you’ll never be involved in an accident no matter how careful of a driver you are, you can do your part to show your insurance agent you aren’t someone to be concerned with.

Depending on the electric car you buy, there’s a chance it qualifies for a federal tax credit. You can use that tax credit and apply it towards the overall cost of your insurance. If you have yet to buy an electric vehicle and are seriously considering it, it’s a good idea for you to do some research to see whether the make and model you’re considering qualifies for a tax credit and just how much of a tax credit you can expect as well as when you can expect to receive it.

Balancing Things Out

While electric cars cost more to both buy and insure, that extra cost is balanced out by the fact that electric vehicles don’t have to be serviced as much as gas-powered vehicles. For instance, you don’t have to worry about paying to replace or repair the alternator, clutch, belts and fuel pump. You can also expect to pay less at the pump. The cost of ownership for an electric vehicle is also commonly less expensive than that of a gas-powered vehicle.

Work With Your Insurance Agent

No matter how much or how little you’re paying for insurance, you should always work with your agent to see what can be done about reducing your costs without compromising on the coverage you receive. This might involve raising your deductible, bundling your insurance policies to receive a discount or going over your plan to see if you have any unnecessary coverage. If you have yet to get an electric vehicle but are strongly considering it, talk to your current insurance agent to get an idea of how much you can expect to pay and if there’s anything you can do during the buying process to reduce the cost of insurance, such as opt for an electric vehicle with abundant safety features.

Electric cars have never been as popular as they are now, and they don’t show any sign of sparking out anytime soon. Manage your finances and your insurance policy properly to get the lowest policy price and the best coverage while you’re behind the wheel.

Image Courtesy : www.indialivetoday.com

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