Does Insurance Cost More for Electric Cars?

Does Insurance For Electric Cars or EVs Cost More than Conventional Cars in San Diego?

Though choosing an electric car can save money in many ways, especially in fuel costs, you may be surprised to learn the price of insurance is often higher than for gas-powered vehicles.The insurance experts at American Tri-Star, a trusted provider of car insurance in San Diego, are here to give you the details.

Repairs Can Be Costly

Electric cars have expensive battery systems and need to be repaired by someone who understands the way these cars work. Since not every mechanic is trained in repairing electric cars, the repair costs after an accident or a malfunction in the motor can be greater than those of a gas vehicle. This is yet another reason why insurance will be higher for an owner of an electric vehicle. Luckily, electric cars don’t typically require much service, which can offset the insurance costs a bit.

Higher Value Means Higher Insurance Costs

If a vehicle is stolen or totalled, an insurance agency must pay out based on its fair market value before the theft or accident. Since electric vehicles typically cost more than their gas-powered counterparts (approximately 70 percent more), the insurance the owner must pay is also higher. San Diego car insurance quotes for electric cars often end up being more than for those that run on gas.

A Quick Comparison

NerdWallet researched the average annual rates to insure four vehicles with both gas and electric models in California—the Chevrolet Spark, Volkswagen Golf, Smart Fortwo, and Fiat 500. Though there was some slight variation, the average worked out to be $1,620 per year for gas vehicles and $1,955 for electric, a 21 percent difference.

Don’t let these numbers steer you away from purchasing that electric car you’ve been thinking about. If you’re looking for cheap car insurance in San Diego, contact American Tri-Star. We are committed to providing you with affordable rates for all your insurance needs, including commercial, homeowners, and health insurance. Call 619-272-2100 today and one of our insurance experts will be happy to answer any questions you might have.