Posted by The rate at which electric cars are taking over the market is quite unreal, and they have surged over the past few years. According to the American Automobile Association, electric cars currently make up 2.6% of the U.S. vehicle market, and this figure is expected to grow to more than 30% by 2030.
An electric car is an excellent innovation, and it helps reduce the emission of carbon into the environment. It’s always an exciting moment in your life when you purchase this vehicle, but it also comes with unique insurance needs.
Finding electric car insurance isn’t always exciting, and you may be surprised to find out that the cost to insure your new battery-powered ride is higher than your traditional car. As a result, you have to opt for the best auto insurance for electric cars when purchasing a policy for your electric four-wheel mobile companion.
In this article, we have provided you with the top-rated auto insurance for electric cars and every other piece of information you may need concerning it. Let’s get started with what this insurance is all about.
What is Auto Insurance for Electric About?
This insurance is similar to auto insurance for traditional gas-powered cars, but there are some important differences to be aware of. For example, electric cars often have higher repair costs due to their specialized parts and batteries.
They may also be more difficult to repair in the event of an accident or other incident. Additionally, electric cars typically have lower mileage limits than traditional cars, which can affect your insurance premiums.
Factors to Consider When Purchasing Electric Vehicle Insurance
- Coverage
- Deductible
- Customer service
- Financial stability
- Reputation of the insurance company
- Discounts available.
Coverage
The type of coverage you choose is one of the most important factors to consider when purchasing auto insurance for an electric car.
Liability coverage is the minimum required in most cases, but you may also want to consider comprehensive and collision coverage, which can cover damage to your car in the event of an accident.
You must understand the different types of coverage and choose the ones that best fit your needs.
Deductible
This is the amount of money you agree to pay out of pocket for repairs before your insurance policy kicks in.
Deductibles can range from $100 to $2,000 or more, depending on your policy. Generally, a higher deductible will result in lower premiums and vice versa.
It’s important to choose a deductible that you can afford to pay in the event of an accident.
Customer Service
When it comes to customer service, you’ll want to consider the insurer’s reputation for handling claims and providing support to its customers.
You can check the insurer’s ratings from organizations like J.D. Power to get an idea of its reputation for customer service.
Financial Stability
You’ll want to make sure that the company can pay out claims promptly and has a strong financial track record.
In case you want to access a company’s financial stability record, you can check its rating from organizations like A.M. Best, Standard & Poor’s, etc.
A company with a high rating from these organizations is likely to be financially stable and able to pay out claims when needed.
Reputation of the Insurance Company
The reputation of the insurance company is another important consideration when purchasing a car insurance policy.
You can check out online reviews and talk to people you know who have experience with the company to get a sense of its reputation.
It’s also important to make sure that the company has a good track record of paying out claims and honoring its policies.
Discounts Available
You may also be able to get discounts for things like having certain safety features on your car or taking a defensive driving course.
It’s important to ask about available discounts when shopping for auto insurance, as they can help you save a significant amount of money on your premiums.
Benefits of Electric Car Auto Insurance
Here are some of the benefits of car insurance for electric vehicles:
- Access to roadside assistance
- Discounts for public charging stations
- Tax credits
- Car rental discounts.
Access to Roadside Assistance
Some insurers even offer special assistance for electric cars, such as help with finding a charging station or getting your car towed to a charging station.
You should also note that other insurers even have partnerships with specific roadside assistance providers who have experience working with electric cars.
So, having this type of coverage can be extremely beneficial if you’re driving an electric car.
Discounts for Public Charging Stations
This is a major benefit of auto insurance for electric cars and some insurers offer discounts on public charging stations, which can be a great way to save money on charging your electric car.
These discounts can vary depending on the insurer and the type of plan you have, but they can range from a small percentage of the charging cost to a certain number of free charges per month.
So, it’s worth checking with your insurer to see if they offer any discounts on charging.
Tax Credits
Electric cars often qualify for federal tax credits, which can help offset the cost of buying and owning the car.
The amount of the credit can vary depending on the model of your car and your tax situation, but it can be a significant amount.
Car Rental Discounts
If you need to rent a car, some insurers offer discounts for electric cars. So, if you need to rent a car while your electric car is being repaired or if you’re traveling, you may be able to get a discount.
This can be a good way to save money on your rental and to try out an electric car if you’re thinking about buying one.
Criteria for Selection of the Best Auto Insurance for Electric Cars
Below are the criteria we used in selecting the top insurance firms for electric cars:
- Coverage
- Customer Service
- Cost
- Claims Process
- Reputation
- Financial strength.
List of 10 Best Auto Insurance for Electric Cars
The following are the best vehicle insurance for electric cars:
Insight on the Top Rated Electric Car Insurance Companies
GEICO
- Year Founded: 1936
- Location: USA
- Average Annual Premium: $1,607
Pros
- They have competitive rates
- There are a variety of discounts available
- Comprehensive coverage options.
Cons
- There are a limited number of agents available
- A limited number of local offices
- May be more expensive for high-risk drivers.
Description
GEICO is one of the largest auto insurance companies in the United States and the world at large. It offers some great benefits for electric car owners.
GEICO also offers a comprehensive coverage option that covers the cost of replacing or repairing your car’s battery, charging equipment, and other components.
AA
- Year Founded: 1994
- Location: UK
- Average Annual Premium: $1,350
Pros
- Wide range of discounts available
- Their rates are very competitive
- Good customer service.
Cons
- Membership fees may be required
- Coverage and rates can vary by state
- May not be the cheapest option in all cases
- Some people may not live near a local office.
Description
AA offers a variety of benefits for electric car owners. These benefits include discounts on insurance premiums, battery replacement and repair, and 24/7 roadside assistance.
AA also offers a charging network that gives you access to over 8,000 charging points.
Admiral
- Year Founded: 1993
- Location: UK
- Average Annual Premium: $1,655
Pros
- Many discounts are available
- Easy-to-use website and mobile app
- Various specialty products are available.
Cons
- It may not be the cheapest option in all cases
- This insurance requires a membership fee
- Not as well-known as some other insurers.
Description
Admiral is another great option for electric car owners in the UK. It offers a variety of discounts and benefits for electric car owners, including a 10% discount on insurance premiums.
Admiral’s financial strength is strong, with an A rating from Standard & Poor’s. Its customer service is highly rated, and the company has a user-friendly website.
AXA
- Year Founded: 1916
- Location: UK
- Average Annual Premium: $1,400
Pros
- User-friendly website and mobile app
- Good customer service
- Financial strength rating of A+ from A.M. Best.
Cons
- Some policies may not be available in all areas
- May require a membership fee for some products
- Some customers have reported slow claim processing.
Description
AXA is another excellent option for electric car owners, and it offers a variety of discounts and benefits, including a 10% discount on insurance premiums.
This insurance also provides a program known as AXA Charge, which gives you access to over 3,000 charging points.
AXA’s financial strength is strong, with an A rating from Standard & Poor’s; its customer service is highly rated; and the company has a user-friendly website and mobile app.
AVIVA
- Year Founded: 2000
- Location: UK
- Average Annual Premium: $1,025
Pros
- User-friendly website and mobile app
- Comprehensive coverage options
- Good customer service.
Cons
- Auto insurance for electric cars is expensive compared to its competitors.
- It may require a membership fee for some products.
Description
AVIVA offers a wide range of discounts and benefits, including a 15% discount on insurance premiums.
It also offers a special charging network called “Aviva Go Electric” that gives you access to over 4,000 charging points across the United Kingdom.
ESURE
- Year Founded: 2000
- Location: UK
- Average Annual Premium: $1,300
Pros
- They have several discounts for you
- Their website is very user-friendly
- Good customer service
- May offer some products that other insurers don’t.
Cons
- It may not be the cheapest option in all cases
- Requires a membership fee for some products.
Description
When it comes to one of the best auto insurance options for electric cars, this insurer is one of the excellent options out there for you.
ESURE offers several discounts and other benefits to their policyholders, such as providing a charging network called “ESURE EV” that gives you access to over 1,000 charging points across the UK.
LV
- Year Founded: 1884
- Location: UK
- Average Annual Premium: $1,400
Pros
- User-friendly website and mobile app
- Comprehensive coverage options
- Good customer service
- Financial strength rating of A+ from A.M. Best
- May offer some coverage options that other insurers don’t.
Cons
- May require a membership fee for some products.
Description
Known as Liverpool Victoria. This is an excellent option if you are an electric car owner in the United Kingdom.
LV has a special charging network called “LV Charge” that gives you access to more than 2000 charging points across the UK.
Root Insurance
- Year Founded: 2015
- Location: USA
- Average Annual Premium: $1444
Pros
- Competitive rates
- Many discounts are available
- You may be able to save money if you’re a safe driver.
Cons
- May not have as much experience as some other insurers
- Does not have as many local offices as some other insurers
- Not available in all areas.
Description
Root Insurance is an innovative insurance company that uses technology to customize your premium based on your driving habits.
This can be beneficial for you as an electric car owner, as you tend to be a safer driver. Root Insurance also has a great mobile app that makes it easy to track your driving and get the best possible rate.
Overall, Root Insurance is a great option for electric car owners who want a personalized experience.
State Farm
- Year Founded: 1922
- Location: USA
- Average Annual Premium: $1,744
Pros
- Excellent customer service
- Financial strength rating of A++ from A.M. Best
- May be able to bundle your auto insurance with other types of insurance.
Cons
- State Farm auto insurance for EVs is quite expensive.
Description
This is one of the biggest insurance companies in the United States, as they provide an excellent option for you as an electric car owner.
State Farm offers a variety of discounts and benefits, including a special “Drive Safe & Save” program that can save you up to 30% on your insurance premiums.
It also has a great website and mobile app that make it easy to manage your policy. Additionally, State Farm has a strong financial rating, with an A++ rating from Standard & Poor’s.
Travelers
- Year Founded: 1953
- Location: USA
- Average Annual Premium: $1,584
Pros
- This insurer has competitive rates
- They offer lots of discounts
- User-friendly website and mobile app
- Good customer service.
Cons
- May not be available in all areas.
Description
Travelers are another great option for electric car owners, as they offer a wide range of products and services. They also offer some good programs, like the “IntelliDrive” program, that can save you up to 10% on your insurance premiums.
Additionally, Travelers has a user-friendly website and mobile app that make it easy to manage your policy.
Tips for Getting the Best Rates on EV Insurance
- Shop around and compare rates from different insurers.
- Consider bundling your auto insurance with other types of insurance, such as home or renters insurance.
- Take advantage of any available discounts.
- Ask about usage-based insurance, which may be available for electric cars.
- Check your driving record to make sure it’s accurate and up-to-date.
- Consider increasing your deductible to lower your premium.
- Keep your car in good condition to avoid damage-related claims.
- Drive safely to avoid tickets, etc.
FAQs on the Best Auto Insurance for Electric Cars
Do electric cars cost more to insure than gas cars?
In general, electric cars may cost slightly more to insure than gas cars. This is because electric cars can be more expensive to repair or replace, and they may have unique risks that gas cars don't have, such as the risk of battery fires. However, many factors can affect your insurance premium, so it's important to get a quote from your insurer to see how much your electric car will cost to insure.
Can I get a discount on my electric car insurance?
Yes, you may be able to get a variety of discounts on your electric car insurance.
What kind of coverage do I need for my electric car?
Generally, you will need the same types of coverage for your electric car as you would for a gas car. This includes liability coverage, collision coverage, and comprehensive coverage. However, it's important to check with your insurer to make sure you have the coverage you need.
Can I get usage-based insurance for my electric car?
Yes, some insurers offer usage-based insurance for electric cars. With usage-based insurance, your premium is based on how much you drive and how you drive. The insurance company may track your driving habits using a smartphone app or a device that plugs into your car's diagnostic port.
Do I need special coverage for my electric car's battery?
In most cases, you will not need special coverage for your electric car's battery. The battery is typically covered under your collision or comprehensive coverage. However, some insurers offer battery replacement coverage as an optional coverage.
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Conclusion
The best auto insurance for electric cars will vary depending on your individual needs and circumstances.
However, you can usually find a policy that provides the coverage you need at a price you can afford. So it’s important to shop around and compare policies to find the best fit for you.
Make sure to drive safely and take care of your car to keep your insurance premiums low.