Skip to main content

Car Insurance for Electric Cars

Many people are drawn to electric vehicles for their reduced carbon footprint, lower emissions and contribution to cleaner air. As interest in sustainability grows, more are seeking transportation options that are environmentally friendly.

If you’re considering an electric car for its environmental advantages or potential for long-term savings, it’s important to know the unique aspects of insuring these cars. Understanding the factors that influence premiums and staying informed about potential savings can help you effectively manage your insurance expenses.

Are electric cars more expensive to insure?

While electric cars are becoming more affordable, they generally cost more to insure than traditional gas-powered vehicles. Several factors contribute to this price difference, and being aware can help you make informed decisions when insuring an electric car.

Advantages that can reduce electric car insurance costs

  • Advanced safety features: Like gas-powered vehicles, electric cars are equipped with safety features like automatic emergency braking, lane-keeping assist and more. These features can help reduce the likelihood of accidents and may qualify you for policy discounts.
  • Regenerative braking and reduced wear: Regenerative braking systems convert braking energy into electricity, powering your car and reducing the strain on hydraulic brakes. This can extend brake life, lower maintenance costs and may reduce the risk of brake-related accidents.
  • Lower environmental liability: Electric cars reduce environmental impact and cut down on fuel costs, freeing up extra funds that can be redirected toward your insurance expenses.

Challenges that may increase electric car insurance costs

  • Higher vehicle value: Despite recent price drops, electric cars typically cost about $8,000 more than comparable gas-powered vehicles.1 Higher vehicle values often translate to increased replacement costs, which may be reflected in your insurance premium.
  • Increased repair costs: Specialized parts and the need for qualified repair shops can also contribute to the higher cost of repairing and insuring an electric car.
  • Theft risk and evolving technology: High resale value and advanced technology can make electric vehicles, particularly luxury models, attractive targets for theft. Additionally, the constantly evolving technology in electric cars introduces new challenges for both security measures and insurance coverage.

How to save on insurance for your electric car

As electric vehicles, parts and specialized repair shops become more prevalent, insurance costs are expected to decrease over time. Until then, here are a few ways to reduce the cost of insuring an electric car:

Bundle auto and home insurance

One of the easiest ways to save on insurance for your electric car is to bundle your auto insurance  with other policies, like home or life insurance. Combining policies may qualify you for a multiline discount, which can reduce your overall insurance costs.

Bundling also simplifies your insurance management, offering the convenience of dealing with a single provider for multiple policies. Insurance carriers may offer greater flexibility and more tailored coverage options when you have multiple policies.  

Explore auto insurance discounts

Safety features: Many gas-powered and electric vehicles come equipped with advanced safety technology, like blind spot detection and forward collision warning. The integration of these safety systems can lead to fewer accidents and claims, which is a factor for insurers when determining premium rates. Some carriers may offer specific auto insurance discounts for new technology integration, recognizing the enhanced protective measures these cars provide.

Safe driving: Demonstrating safe driving habits is another way to lower your car insurance costs. Consistent safe driving can reduce your premiums over time, as insurance companies consider your driving record when determining your rates.

StreetSmart by Amica™ is our free mobile app that uses telematics to provide you with insights into your driving patterns and shares tips to improve safety. Drivers who avoid things like speeding and hard braking can earn a discount on their premium.

Compare multiple car insurance carriers

To ensure you’re getting the best coverage and service for your budget, you should consider comparison shopping. Comparing quotes from multiple companies for car insurance can ensure you’re working with a company that meets your needs and gives you a broader perspective on price differences and potential savings.

Many online tools and resources make it easy to obtain multiple quotes quickly. Furthermore, it's always a good idea to read reviews and customer feedback on different insurance companies to gauge their service quality and claim handling. If you find a better rate with a carrier you’re comfortable working with, you may want to switch car insurance  companies.

Consider the additional savings beyond insurance

Over time, the total cost of ownership for an electric car can be lower than a gas-powered vehicle, despite the higher upfront cost.

  • If you own an electric car, you may be eligible for federal and state rebates or tax credits, which can help offset the purchase cost.
  • Electric vehicles tend to have fewer moving parts compared to traditional gas-powered cars, which can reduce maintenance requirements and trips to the mechanic. There’s also the added benefit of having lower or zero fuel costs.

These financial benefits make electric cars an attractive option for budget-conscious consumers looking to invest in a more sustainable future. 

Making the most of electric car insurance

Electric cars offer a practical way to reduce your impact on the environment and experience advancements in technology and performance. By bundling policies, exploring discounts, comparing quotes and leveraging other savings, you can enjoy the perks of driving an electric car, while keeping your insurance costs in check.

For additional tips on saving, check out our article on How to Lower Car Insurance.

Get an auto insurance quote

or call 833-513-3881

1 How Much Are Electric Cars? Kelley Blue Book
 

Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts.

This inclusion of non-Amica companies, products, services or statement herein (“Third-Party Content”) is for general informational purposes only and does not constitute a recommendation or endorsement by Amica Insurance. Policies, views, opinions or positions of Third-Party Content expressed herein are those of the authors and do not necessarily reflect the policies, views, opinions or positions of Amica Insurance. Amica Insurance makes no warranties, expressed or implied, as to the accuracy and reliability of Third-Party Content.

This content may contain helpful tips, explanation and advice. Your use of this information is voluntary and may not be effective in every circumstance. Amica encourages you to use good judgement and put safety first.

For more information on our editorial process and content standard, take a look at our editorial guidelines.

 

AMIC-01-083024