Is Electric Vehicle Insurance Expensive?
Electric Vehicles are becoming more and more popular. They are the car of the future. Be warned, Electric Vehicle Insurance is typically more expensive than the traditional gas powered vehicles. Whether it is a Tesla, Ford, Hyundai or any other Electric Vehicle model the repair costs are going to be higher for an electric vehicle. The cost of replacing battery modules can be between $2000 and $20,000. Electric vehicles also typically cost more to purchase than conventional vehicles. According to Kelly Blue Book, Electric Vehicles are on average $10,000 more in value. If the car insurance company is paying more to repair and replace vehicles, than they are going to have to charge more premium for those vehicles.
Why Does Tesla Insurance Cost More?
Think of it like owning a Corvette. The Corvette is a higher value vehicle and the parts are more expensive than the typical vehicle. If the insurance company has to repair or replace the Corvette, they are going to have to pay more. Thus, the insurance rates are more expensive for a Corvette than they are the ordinary vehicle. Same can be said of Electric Vehicle Insurance. On the plus side, the annual maintenance of Electric Vehicles is reported to be about half of the conventional vehicles. Of course, the gas expense is significantly less so there are additional savings there, so there are many Pros and Cons of owning an Electric Vehicle.
Insurance Quote for Electric Vehicle
I’m not comparing an EV vehicle to a Corvette, but you get my point. How much more is it for EV Insurance? To be honest, from what I have experienced so far, EV Insurance is not that much more. Not enough in to deter you from owning or purchasing an EV Vehicle. But it can be 10 -20% more than the traditional vehicle.
According to S & P Global, there are now over 10 Million EV Cars on the Road. With more EV manufacturers and more EV’s on the road, the cost will come down. With the value of EV’s coming down, Insurance companies having more experience with EV’s, the cost of EV Insurance will likely come down. For more information about Minnesota Electric Vehicle Insurance or an insurance quote on your Electric Vehicle, you can call/text to (763)767-0522 or fill out the short contact form listed below.