Why do electric cars cost more to insure?
Although the gap is closing, the purchase price for most electric and hybrid cars (which feature gas- and battery-powered engines) is higher than similar gas-only models. Generally, higher-priced vehicles cost more to insure because they also cost more to repair or replace. Today's electric vehicles also have fewer moving parts than conventional automobiles, but those parts can be pricey. If the battery pack is damaged, certain safety protocols are often necessary, adding more to the repair bill. Plus, there aren't as many shops with technicians trained to fix electric vehicles versus traditional vehicles. That means those qualified facilities may charge more for repairs because of the specialized training required.
All this means potentially higher costs for insurance companies in the event of a claim involving an electric or hybrid vehicle, resulting in higher rates for electric vehicle policyholders. This additional risk has nothing to do with the driver — it's due to the technology in the car itself. However, it's important to note that, while electric vehicles are currently far from the cheapest cars to insure — as they become more commonplace and the availability of parts and qualified repair shops grows — the cost to fix them should go down, as should insurance rates for electric cars.
Generally, higher-priced vehicles cost more to insure because they also cost more to repair or replace.
Are there ways to reduce the cost of insuring an electric car?
As with any auto insurance policy, you'll qualify for a better rate if you have a clean driving record, which means no at-fault accidents or moving violations. Your age and geography also play a part in determining your premium. And do your homework before you buy a new policy; with some car makes and models, the increased popularity of battery-powered vehicles is pushing electric car insurance costs to equal or even be slightly less than their gas counterparts.