10 Facts About Insuring Your EV (And How to Save)

Are you thinking of making the switch to an electric vehicle? If so, don’t overlook the car insurance implications of that change.

In addition to shopping around to save money on car insurance, there are some things to keep in mind about coverage that might be different for a gas-powered vehicle.

Here are some things you need to know about making the switch.

Although the cost has come down recently, car insurance for electric vehicles is generally more expensive than coverage for gas-powered cars.

Batteries can cost more to replace if you are in an accident, and parts may not be as readily available as they are for popular gas-powered cars.

Electric vehicles typically have a higher sticker price than gas-powered cars, which factors into insurance costs.

Insurance companies must pay more to cover the costs of replacing your vehicle if it crashes. So, these insurers charge you more to cover their costs.

Whether you are buying an EV or a gas-powered vehicle, shopping around for coverage is one of the best ways to save on car insurance.

Each insurance company sets rates according to its own criteria, so one insurer might be a better fit for your situation than another.

Many insurance companies now offer coverage for EV owners.

Check with different insurers to see which company offers the best deal. See if your current insurer will switch you to an EV policy and give you a discount for remaining a customer.

Look for insurance company discounts that can lower your costs. For example, you might get a price break for bundling your car insurance with other types of insurance, such as homeowners coverage.

Some insurers also might lower your costs if you have a good driving record.

EVs are a great option for drivers who do a lot of local driving rather than long trips out of town. If you're one of these drivers, consider looking at pay-per-mile insurance coverage.

With this type of coverage, you pay a lower initial monthly rate and an additional charge for each mile you drive each month.

Tesla is one of the best-known manufacturers of electric cars, and the company makes it easy for owners to obtain insurance policies.

You can buy Tesla Insurance through the company’s mobile app. Check around to see if this is your best option for auto insurance.

Increasing your deductible should result in paying lower premiums. Consider this option if you're a good driver and have extra cash in an emergency fund to cover a higher deductible should you need to pay it.

Remember that carrying a higher deductible means paying more out of pocket before your insurance kicks in if you get in an accident.

As with gas-powered cars, some EVs are more expensive to cover than others.

Compare insurance rates for different types of EVs that you might be interested in buying. That way, you can see exactly how much your favorite options will cost to insure.

You will probably pay more to buy and insure an EV, but there are other ways to save money.

An electric vehicle usually requires less maintenance than a gas-powered car, so you can keep more cash in your wallet when you no longer have to worry about oil changes.

The cost to charge your EV may also be less than filling a gasoline tank. It’s a good idea to check with your electric company about estimated costs for charging your EV, including asking if the price will be lower if you charge during non-peak hours.

Electric vehicles aren’t for everyone: There are some things you should consider before buying an EV, including the cost of car insurance.

While you might get a tax credit for buying certain EVs, they're still expensive, and car insurance can be more expensive.

Of course, you will save a lot of money by not having to buy gas. So, if you are trying to get ahead financially, weigh all these factors before deciding whether an EV should be in your future.