Are electric cars more expensive to insure?

The simple answer to this question is "yes". An electric car, when compared side by side to its gasoline powered equivalent, will cost more to insure. There are numerous reasons for this. Some make sense. Others do not. The bottom line is that whether you agree with the insurance companies' prices or not, the rates must be paid to be covered against mishaps.

The cost to purchase one of these vehicles is higher than you would pay for a traditional gas car. This makes it more costly to replace if an accident occurs. A car that has been totaled will have to be paid off, replaced, or both. For the insurance company this means that a claim will cost them more money out of there funds that they have set aside. To compensate for this, they will charge you higher fees. The company must make sure that they can cover the expense of repairing or replacing a damaged electric car. So, to compensate for the inflated buying price of an electric car, the agent will charge a higher yearly premium. Check with a company that will compare car insurance for you to ensure that you get the best price.

The cost to repair this type of vehicle also makes the price of insurance higher. Parts are hardier to get and usually must be ordered in. The battery packs that they rely on to drive are extremely expensive to replace because of the number of cells in each vehicle. Mechanics are also not as familiar with fixing an electric car, so it will take them longer to repair. As you know, a mechanic will charge you by the hour, and tack on there own fees to the parts they buy, so the cost climbs as the repair time increases.

You are considered a higher risk because these cars are more extensively damaged when in a fender bender. It doesn't matter how good of a driver you are, or how defensively you drive. The risk assessment is given because of the car, not you. They are built with economy in mind, which means lighter weight materials are used in the manufacturing process. They do come with all the required safety features to protect the occupants, which helps in keeping everyone inside the vehicle safe, but since damage can be more intense, injuries to people can be worse when it does happen.

An electric car can save you money in other areas, and does lower the impact upon the environment, but they are still new on the market, which causes new types of issues for insurance companies. As time passes and electric cars become more common the purchase prices will come down. The cost of repairs will decrease due to better availability of parts. Mechanics will have a better understanding of the vehicles which will help costs come down. Best of all, advances in the manufacturing processes will make these cars more structurally strong and will give the insurance companies less stress when coming to an accident. An agent with reduced stress will charge you less.