Auto Insurance for Electric Cars vs Gas-Powered Vehicles

Through the years, insurance businesses have specified the range of costs needed for gas-powered vehicles, such as repair costs, total replacement costs, and personal injuries or property damage cost. Therefore, consumers expect to pay a certain amount for a gas-running vehicle. Still, the price of insurance for electric vehicles is still under examination.

No matter what type of vehicle is driven, consumers still want to save money on insurance premiums. As a consequence, this makes hybrid-driving owners concerned about the current and future prices of insurance. Nevertheless, there are similarities and differences between hybrid-vehicle insurance and gas-running vehicles. Even with variable costs due to economic issues, gas-car owners can still count on insurance cost to remain with a certain range. However, hybrid drivers and insurance companies are concerned about where the range of electric car insurance will go after a full study of electric car accidents has been made. Unfortunately, these studies may take many years to compile. Even so, insurance companies are still doing preliminary research to determine the appropriate rate to pass on to consumers.

Similarities of Coverage

Both gas and electric running vehicles require liability or full coverage, depending on if the owner is still making payments. Of course, the type of coverage acquired is also based on consumer preferences. Insurance companies offer similar policies for accident coverage for both types of vehicles. Other policy points that are offered for both vehicles include personal injury, hospital coverage, emergency services, property damages, and uninsured motorist. Furthermore, insurance companies still make a determination of coverage amount based on demographical statistics, such as the driver’s age and sex. Yet, insurance companies still apply discounts or cost increases based on the previous driving history of the car owner. Even so, there are some differential issues that make it tough for electric car owners to get insurance and savings.

Difference in Coverage

Although not enough evidence is available to properly create an established range of insurance costs for electric vehicles, insurance companies utilize various reasons for setting their policies. For instance, some insurance companies set their policies by taking into account the actual shape of electric cars. Insurance companies are aware that there is considerably more accident risk with cars that are smaller in size. Studies show smaller vehicles are more likely to have irreparable damage if a collision occurs. As a consequence, insurance companies increase their insurance policy cost on electric vehicles, if they maintain an electric vehicle policy at all. Although electric cars are smaller than most sedans, the shape of electric car parts and accessories are also an issue for insurance companies. First, hybrid parts are more difficult for repair companies to replace, due to the fact that they are less available from parts manufacturers than gas-vehicle parts. Another reason that repair shops find it difficult and costly to work on hybrid vehicles is because of their hi-tech nature. Even so, some repair companies do not have equipment to work on electric vehicles. This usually means insurance companies may need to use repair companies that are further away from the owner’s home. Of course, this means additional costs for both consumers and insurance carriers.

Uncertain Discounts

Another issue involving the electric vehicle concerns insurance discounts. Do owners of hybrid cars or neighborhood electric vehicles actually get a discount on their insurance premiums? When comparing electric vehicles to gas-powered vehicles, owners of the former usually pay more for insurance. So, if consumers receive discounts on electric-powered vehicles, will these discounts lead to insurance premiums that are comparable to those of gas vehicles? Some argue that discounts on electric vehicles are negated, because drivers still pay more for their insurance during the life of the vehicle. Others believe these discounts are a legitimate way for electric car owners to save money. Yet, consumers still have responsibility to acquire the best and most affordable car insurance possible.

Driver Responsibility

Acquiring car insurance for an electric vehicle compared to a gas vehicle may have its challenges. One of those challenges is to locate an insurance company that carries a policy for electric vehicles. Once owners are able to locate some insurance companies they can compare, then it is their responsibility to select the carrier offering a base price and discounts that are favorable. To find a favorable insurance company, consumers will need to do a lot of research, and maintain a good driving record. Still, they may have to take advantage of discounts, by placing their hybrid vehicle under a second-car policy. Even if an electric vehicle owner cannot locate a favorable discount, they may have to be satisfied with knowing they are doing their share of environment responsibility.


Miles Walker is a freelance blogger who usually writes about car insurance over at Car Insurance Comparison .org. His recent review looked at car insurance North Carolina.