How EVs Impact Auto Insurance Costs

Understanding how driving an electric vehicle (EV) impacts insurance costs can help you make informed decisions about your vehicle and coverage.

There are two main reasons why EV insurance may be higher than coverage for other vehicle types, including the following:

• Purchase price—EVs generally cost more upfront than their gas-powered counterparts due to the advanced technology and materials used in their construction. This higher value translates to higher insurance premiums, as the cost to repair or replace an EV in the event of an accident is typically greater.

• Repair costs—EVs have specialized components, such as battery packs and electric drivetrains, which can be more expensive to repair or replace than traditional engine parts. Additionally, fewer repair shops are equipped to handle EVs, which can drive up labor costs. These factors contribute to higher comprehensive and collision coverage premiums for EV owners.

How to Choose EV Auto Insurance

The type of coverage you choose also impacts your insurance costs.

• Comprehensive auto insurance may help cover non-collision damage such as theft, vandalism or natural disasters. It can be particularly important for EV owners due to the high value of their vehicles.

• Collision coverage may help pay for damage to your car from a collision with another vehicle or object.

Additionally, considering coverage options like gap insurance or new car replacement coverage can provide extra peace of mind.

If you lease or finance your EV purchase, the lienholder can require specific types of coverage to help protect their investment. Your agent can help you secure appropriate EV auto insurance at favorable rates.

Auto Insurance Discounts for EV Drivers

Many insurance companies offer discounts for drivers who maintain a clean driving record, bundle their home and auto policies, or pay their premiums in full rather than monthly. It’s also worth exploring any specific discounts for EV owners, as some insurers incentivize driving EVs.

Contact Us

Contact Orbit Insurance & Multiservice in Douglasville, Georgia, for a personalized auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.