Are Electric Cars Cheaper To Insure?

If you are thinking of owning an electric car, auto insurance is a crucial factor to consider. Here is the answer to whether it is cheaper to insure one for you.

Electric cars are believed to be the way forward to ditch diesel and go green. However, the new type of automobile also raises concern over the belief that cost of their auto insurance is higher than the old one. No matter how accurate the statement might sound, the monthly bill to ensure an electric car actually depends on more factors than just the source of fuel. The insurance quote for an electrica car actually comes down to the type of car and the owner’s circumstances.

Type of car

No matter what your cars run on, risk is the only thing insurance companies care about

Most insurance companies come up with the monthly insurance cost based on how likely the car is to get involved in serious accidents, how secure it is from thieves, and how much it will cost to repair. For example, a car with more horsepower is usually charged higher than a regular minivan. The reason behind this is the faster the car, the higher the risk of the driver to lose control of speed and crash.

However, this doesn’t mean that electric cars are more dangerous than the diesel models. The real story here is that insurance companies are unable to gather enough information to decide on a specific number. Electric cars are not a new idea but it was not until recently that they gain their popularity. Insurance specialists require a vast amount of data that span over a large period of time to determine how safe the cars are in accidents. Electrica cars have not been on the road long enough to provide such information. This is why insurance companies are shy from them, or even choose to deny a coverage request to avoid a matter that they do not understand thoroughly.

How much it takes to repair the car

Many insurers remain skeptical of electric cars, often penalizing motorists because of fears over the hugecosts of repairs. This new type of cars is made with new techniques that not all regular mechanics, who have grown familiar with the conventional model all their lives, can comprehend and put into practice without some added knowledge and skills. The shortage of skilled workers that are able to restore electrica cars when they are damaged further pushes the cost of keeping them out of reach of a typical person.

Even if mechanics with this new set of skills are available, spare parts to replace the damaged ones are another issue that needs to be addressed.The rarer the parts, the greater their cost.Electric cars’ complicated battery system is another reason why repairing them costs their owners so much and make the covering amount skyrocket. That is why the Nissan Leaf is classified into insurance groups 20-25 while a Volkswagen Golf 1.6 TDI belongs to groups 10-13. These factors combine to great effect in keeping insurers away from coming up with a reasonable auto insurance policy.

It depends on the reputation of the producer

Last but not least, not all car producing companies are associated with the same level of safety. A company with a history of making safer electric cars are probably come with a lower insurance rate. Take Tesla and ForTwo are two examples. Tesla’s Model S has recently been praised as the safest and most exhilarating sedan on the road. It is a grand entrance for Tesla in the market and a good piece of news for people who are worried about the safety of electrica cars. ForTwo.On the contrary, doesn’t have so good of areputation. It is common sense for insurers to charge higher to cover a ForTwotwo-seater than a Tesla’s Model S.

How much the car is worth

Cheap cars are not always come with alower quote. This is because of the higher risk of vehicle failure that can lead to accidents and the lack of replacing parts that may come with cheap cars. This will explain why inflating your car’s value will bring you benefits; because even in the event of an accident, no insurer can cover more than the market value of the car. Therefore, there is no point in trying to classified your vehicle as a cheap car to take advantage of insurance.

Car owners’ personal circumstances

Where you live and park

If the owners are residents of a neighborhood that is notorious for its levels of crime, it is more likely that he or she will be faced with a higher insurance rate. By leaving your car in an unsafe garage or street, the vehicle is exposed to higher risk of theft, insurers raise the price of the quote accordingly.

Your age

This factor is out of anyone’s control. The young are usually associated with higher risk and therefore, are costlier to cover. A newly-licensed seventeen-year-old is, in many cases, more likely to get involved in road traffic accidents due to lack of experience. While a forty-year-old with more than twenty years of dealing with difficult situations on the road is considered otherwise a safe driver.

Your gender

Gender is another factor that has the correlation with risk. When drivers are under 25, the male is believed to be more likely to speed and drive under the influence than the female. The number of male drivers to lose their lives in fatal road traffic accidents is also larger. However, the over 25-year-old group does not face the same assessment.

Your marital status

Reducing the insurance premium is not the sole reason to get married, but whether you have tied the knot or not does have an impact on the quote. Insurers believe that a married driver is more responsible when they are on the road than asingle one.

Annual mileage

Insurers believe that the more time you spend on the road, the higher the risk of getting into accidents. If you don’t drive many miles a year or your average daily commute does not exceed 10 miles, you are eligible for an insurance discount.

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