Electric cars, like a Tesla or Mitsubishi, are becoming all the rage these days as people are hoping to move away from gas dependency and be more environmentally friendly with their carbon footprint. Since this isn’t yet the norm as far as vehicle purchases go, they’re still often a lot more expensive than buying a traditional gas-reliant vehicle.
However, does that affect insurance rates as well? As with any vehicle, it depends on your driving record of course, but you can also do things to get a cheaper rate.
According to Self Financial:
- Electric cars are almost $450 more expensive to insure than a gas car.
- Average annual car insurance costs for an electric car are approximately $1,674 per year.
- The annual cost of an electric car is approximately $2,722 per year.
- On average, gas cars are about $1,454 cheaper than an electric year per year.
Luckily, experts believe that these higher costs won’t last forever and are only in place since these types of vehicles are so new to the market. Here are a few things electric car drivers can do to reduce the costs of their insurance in the meantime:
- Find on insurance that rewards environmentally-friendly driving. Several insurance companies have created initiatives that provide discounts to those who are specifically driving an electric car. These can include the following: green vehicle rebates or incentives, alternative fuel vehicle rebates or incentives, and fuel-efficient discounts.
- Shop around and get quotes. As with any process for finding the most affordable insurance for your needs (spanning really any industry), you’ll want to shop around and get quotes from many different companies so you can compare and contrast. Even if you find one that is the cheapest available, it might not necessarily be the best fit for your depending on your other needs, such as whether or not you have gas cars on your policy as well. You’ll want to shop around and find what is more affordable for you while also taking into account your needs.
- Talk to your current policy. Before you jump ship, you’ll want to talk with your current provider to see if they have options for lowering your rates. If they aren’t able to offer you a lower rate, however, that’s when you might want to start considering other options.
- Factor in insurance costs. When you’re budgeting for a new electric car, make sure you include the costs of potential insurance so you can accurately give yourself the right numbers. Otherwise, it might come as quite a surprise.
