How Much More Will it Cost to Insure Your EV |
Posted: October 14, 2017 |
Over the years, the clamor for environmental conservation has seen new eco-friendly machines and technologies dominate the production lines of many industries. With motor vehicles considered some of the highest emitters of greenhouse gases, the eco-friendly revolution is increasingly sweeping across motor vehicle manufacturing industry. One such technology that is increasingly becoming popular across many cities around the globe is electric vehicles (EVs). Given the thumb of approval by various federal agencies, electric vehicles are some of the greenest vehicles on our roads today due to their great fuel consumption efficiency. However, for many electric cars owners the high cost of insuring electric cars is increasingly becoming a major setback. Why Choose an EV Over a Traditional Automobile? Despite their relatively higher prices compared to their gas-engine cousins, electric vehicles come with a generous federal tax subsidy. Those intending to purchase an EV can recoup a significant part of the over $10,000 extra they pay with the over $7,000 EV subsidy given by the federal government. EVs have excellent fuel efficiency especially for short distance travels around the city. Moreover, their cute designs provide a unique way of making an eco-friendly statement with a sleek and elegant touch. For EV owners in states such as California, it is a unique opportunity to drive on the high-occupancy vehicle (HOV) lanes reserved for special circumstances or peak hours as long as you are alone in the car. Shopping for an EV? Beware of the Hidden CostsFor insurance companies, statisticians are some of the most valued employees. They are tasked with crunching the numbers to come with important data that determines the premiums car owners pay and the amount of insurance claims payable. Therefore, the decision on how much premium you pay for your cute EV model is arrived at based on numbers the statisticians arrive at after chunking through the large amount of data collected. Through these numbers, insurance companies come up with hidden costs in the form of premiums. For any individual driver, the hidden costs are determined by both personal and non-personal factors. Personal factorsThere are a plethora of personal factors that auto insurance companies consider when crunching up numbers to come up with your premium. Chief among them is your driving and insurance claims record. Drivers with long history of insurance claims and crash cases are considered to be high risk and are likely to be charged higher premiums. The same goes for younger drivers who are vulnerable to distractions while driving. Drivers who frequently drive their cars for longer distances have a higher propensity of crashing and hence pay higher premiums. A poor credit history as well as insecure place of residence can lead to higher insurance premiums. Unsafe neighborhoods are prone to vandalism and car thefts. Some states also have favorable insurance policies and hence can be reason why you might be charged relatively lower auto insurance premiums. Non-personal factorsFor many EV owners, their greatest worry is the hidden charges that drive their insurance premiums sky high. Insurance companies' statisticians usually comb through the car model data including statistics on its crash records and amounts of insurance claims. They also consider the cost of repairs, which is usually higher for EVs compared to their gas-engine counterparts. Such information is however not available to the EV owners and those aspiring to purchase an EV. The high cost of claims and EV repairs including cost of replacing their relatively expensive batteries are some of the reasons why you pay higher premiums on your EV insurance. This is why you will pay up to $2,016, which is over $400 more per year when insuring your Fiat 500e compared to its gas-powered Fiat 500 Pop version. However, the secret to finding the best premiums is shopping around. Have as many free insurance quotes from different insurers as possible before making this all important decision. Electric vehicles offer more than just cute designs. If you are keen on making the ultimate eco-friendly statement, shop around for the best deals on electric cars. As you shop around for the right car, remember to do the same for your auto insurance provider in order to find the best premium deal.
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