Auto insurance premiums for electric cars tend to be higher than those for gasoline cars. It is not that insurance companies don't like electric cars; there are challenges with electric car insurance. Some of these challenges lead to high risks for insurers, which translates to high premiums. The following are some of these challenges.
Full electric cars have not been in use for a long time, and they are not yet as widespread as gasoline cars. This means insurance companies are not yet accustomed to the risks that they may face when dealing with electric cars. Insurance companies like to deal with risks they fully understand. This uncertainty leads to elevated insurance premiums to cover the unknown risks.
Auto insurance, or any form of insurance for that matter, is a numbers game. Insurance works best when many people pool their resources (by paying premiums) so that a few of them who may need compensation get it without complications. Since full electric cars are not yet mainstream, the premiums may need to be slightly high to protect all insured electric car owners.
High Purchase Costs
Even though the operating costs of an electric car may be lower than those of a gasoline car, the purchase cost of an electric car is higher than the purchase cost of a comparable gasoline car. The insurance companies are concerned with the purchase cost because it is what you would pay if an insured electric car were to be totaled in an accident or stolen. Thus, the premiums you pay for the electric car insurance must be enough to cover these high purchase costs.
High Repair Costs
The repair costs of electric cars after a road accident can be high. For one, the most expensive cars are also expensive to repair. Secondly, electric cars have relatively new technologies that require specialized knowledge, which doesn't come cheap. Lastly, the electric components of electric cars are expensive to replace.
Lastly, not all auto insurance companies have policies for electric cars. Due to the laws of supply and demand, limited coverage leads to high prices. The more businesses offer a service, the more fees for the service are likely to go down due to completion in the form of discounts and similar offers.
The good news is that the same tips that you can use to lower premiums for gasoline cars can also work for electric cars. Talk to services like Hayes McDowell Insurance Agent to help you insure your electric car at affordable rates.