What You Need To Know About Insuring Your Electric Vehicle
The current government administration has taken a firm stance on increasing the number of electric vehicles on the road over the next decade. President Biden issued an Executive Order calling for upgrades of federal vehicles to zero-emission vehicles and offering tax credits for anyone willing to upgrade. While many people are willing to buy them, others hesitate because they question how an electric vehicle affects their car insurance. Here are some things you need to know about car insurance services for your electric vehicle.
You Are Required to Insure Them
There are four basic types of electric vehicles currently on the market. These include:
- Battery Electric Vehicles (BEVs)
- Hybrid Electric Vehicles (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Fuel Cell Electric Vehicle (FCEV)
Some of these vehicles are fully electric, and others are hybrids that run on electricity and fuel. No matter how they are powered, they are still vehicles, and you are required to insure all of them if you drive them on the road. Although collision insurance may be optional, liability insurance is mandatory in most states.
You May Pay More To Insure Your Electric Vehicle
Your insurance policy for your electric vehicle is no different than the one you purchase for your gasoline-powered vehicle. Electric vehicle policies include the same components as any other policy. These items include liability, bodily injury, collision, and comprehensive coverage.
Unfortunately, your electric vehicle policy may be slightly more expensive than your conventional policy. The higher vehicle price tag and the higher cost of replacement parts if you are involved in an accident contribute to the higher cost.
There are also fewer shops or garages qualified to work on electric vehicles. This supply and demand allow garages to charge higher hourly repair rates due to the specialized training their mechanics and facilities require to fix the vehicles.
You May Be Able To Offset The Higher Insurance Cost
Like any car insurance policy, you may be eligible for discounts on your auto insurance. Your insurer bases these discounts on the following:
- Driving record
- Age
- Address
- Affiliations
You may also qualify for discounts if you agree to bundle your insurance policies or by how you choose to pay for your policy. For example, your insurer may offer a discount if you pay annually or semi-annually versus monthly.
You can also offset the cost of your policy by taking advantage of some of the current rebates on electric vehicles. Plus, remember your gas savings will also help offset the costs.
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