Thanks to newly affordable electric vehicle technology, and California’s rigorous emissions standards, Californians now have a number of electric cars to choose from. But before you go electric, it’s important to understand what electric cars look like from an insurance perspective.
When insurers look at the world, they see risk. With electric cars, the biggest risk is the unknown. That’s because there is not a lot of crash data to help insurance companies determine the risk potential for many of the newer electric vehicles. This may mean additional expense when it comes to insuring an electric car in the near-term. But, as electric cars become the norm, this will probably change based on the available data.
Another risk associated with insuring electric vehicles is the cost of parts. Because electric vehicles are made with the latest technology, and what are considered to be “non-standard” parts, they may be more expensive to repair in the event of an accident.
The good news is that insurance companies tend to favor what they see as the responsible drivers behind the wheels of electric cars. Therefore, some insurance companies are offering discounts for electric vehicles.
So, while owning an electric car may put you into certain risk pools, the risks associated with electric cars, from an insurance perspective, may even out in the end.
This will all come into better focus as electric cars become more and more common on California roadways. Until then, the best way to determine how much you will pay to insure an electric car is to call your insurance company, or get a quote.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.