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Electric Car Insurance: Everything You Need to Know

Electric car insurance? Is this really a thing? Do you need special auto insurance just for going electric?

Well, the short answer is yes. You do. But it’s not as hard to get covered as you might think.

Maybe you’re trying to do your part to patch that hole in the ozone layer. (Good on you!) Or you might just be trying to save money at the pump. (You’re looking pretty smart right now as gas prices skyrocket.) Or maybe you’re intrigued by how much you can save during tax season with the EV tax credit.

Whatever the reason, we’ll show you everything you need to know about getting that sweet new electric ride covered.

How Is Electric Car Insurance Different From Traditional Policies?

Trying to figure out how much car insurance you need for a regular vehicle can be a little like calculating the square root of pi. (Is that even possible?) It’s complicated.

But here’s the (sort of) good news: Electric car insurance (or EV insurance) isn’t any more complicated than your standard auto insurance policy. Your options include liability, collision, comprehensive or full coverage.

And most insurers will cover your electric car (even Tesla’s  Plaid model). In fact, some of them now offer discounts for electric vehicles.

And if you’re a Tesla fan, and you live in California, Arizona, Illinois, Ohio or Texas, you can buy insurance for your Tesla straight from Tesla (called Tesla Insurance). Tesla will cover things like cyber identity fraud, key replacement, wall charger expenses, and autonomous-vehicle-owner liability (for those folks who use autopilot a lot).

How Much Is Electric Car Insurance?

Now, you might be checking your budget and wondering, Just how much is this new toy going to cost to insure?

Well, it’s going to cost a little more. EV insurance is usually more expensive than the cost to insure the average vehicle. The average six-month premium for a Hyundai Ioniq costs $891, while a six-month premium for a Tesla Model S costs $1,142.1

But the money you save on gas and maintenance (goodbye, oil changes!) could offset some of those higher insurance premiums.

Why Is Electric Car Insurance More Expensive?

Electric cars cost more to insure—and not just because they look snazzy and hip. There are two main reasons:

  1. Electric vehicles usually cost more than traditional cars or trucks. The more it costs to replace a vehicle, the higher the insurance.
  2. It costs more to repair electric cars. Damaged batteries can cost over $15,000 to replace—ouch!2 And they can get damaged even in minor accidents. Plus, not all mechanics can work on electric cars. So you might pay more for repairs than you would for that 1995 Honda Civic.

You might also pay more just based on where you live or your age. For instance, teens cost a lot more to insure than if you’re deep into #adulting.

But before you ditch that electric ride, there are a couple of ways to save on those insurance costs . . .  

Do You Have the Right Insurance?

Find out what insurance coverage you should add, tweak or drop based on your individual needs.

Take the Coverage Checkup

How to Save on Electric Car Insurance

Keep your driving record as clean as possible. Practice defensive driving. That means not speeding around Dead Man’s Curve or running stoplights and collecting tickets that will drive up your rate (pun intended).

Check for discounts. Ask your insurance company if they offer electric car discounts.

Look for rebates or tax credits. See if you qualify for state or federal electric vehicle rebates or tax credits. For example, under the California Clean Vehicle Rebate Project, Californians can get up to $7,000 if they buy certain types of electric vehicles.3 Uncle Sam also offers up to $7,500 if you buy certain types.4

Get the Best EV Coverage at the Best Price

The last thing you want is for your electric car to be damaged and find out you’re not covered. But how do you know exactly what you need?

Well, insurance can be hard. That’s why we created the Endorsed Local Providers (ELP) program. It’s a network of local, independent insurance agents who can shop insurance rates for you. They’ll look at your unique situation and find you the best coverage at the best price. And they’re RamseyTrusted, which means you’ll be working with agents who have your best interests in mind.

Don’t wait till after the accident to look into this. Reach out to one of our pros and check this off your list.

Connect with an ELP today!

Ways to Save on Car Insurance Checklist

Don't let car insurance costs get you down! Here's a checklist for easy ways to save.

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