Rick's Free Auto Repair Advice

Car insurance rates for electric vehicles

Why are car insurance rates for electric vehicles higher than other cars?

If you’re contemplating buying an electrical vehicle, be prepared for higher insurance rates for an electric vehicle; about 20% more for car insurance than a comparable gasoline vehicle. Here’s why.

The accident risk for electric vehicles is the same, but repair costs are much higher. So the insurance rates for electric vehicle is higher

You have to take it to a specialized repair shop and that costs more

Electric cars don’t get into more accidents. But when they do, you have fewer choices of where you can take it for repairs. Not every body shop can work on electric cars because they don’t have the proper tools or the training.

The repair parts for electric cars cost more so the insurance rates for electric cars are higher

Since they’re sold in much lower volumes, body shops have to buy replacement parts from the dealer because they’re simply not available in the aftermarket.

The technology is more expensive to repair

Electric cars have far more sensors, computers and battery/charging components than gasoline cars. And, like the body parts, most can only be obtained from the dealer. If the battery is damaged in a collision, the vehicle will most likely be totaled even if the body damage is minor.

The Tesla insurance model

Tesla has partnered with an insurance company to combat this high insurance costs for electric vehicles. If you live in one of the few markets that offer it, you can buy Tesla-branded insurance.

However, to get the lower rates, you must participate in anonymized telematics. In other words, you must agree to let Tesla and their insurance company mine your driving data directly from the vehicle.

©, 2021


Posted on by Rick Muscoplat


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