Skyrocketing auto insurance rates hindering growth of electric vehicles according to personal account
In the ever-evolving world of automobiles, electric vehicles (EVs) are becoming increasingly more attractive and feel more attainable. This shift is not lost on drivers, as nearly half are considering EVs for their next car or truck, a trend that is especially true in more rural areas.
One area where EVs may not offer immediate savings is insurance. Insuring an electric vehicle typically costs more due to factors such as higher repair and replacement costs, and the fewer qualified shops available. BurritoLover2016 suggests changing insurance companies to lower the premium cost for electric vehicles, a strategy that could potentially yield results.
The mix of insurers in a region affects quotes, with some carriers avoiding high voltage repairs and others rewarding Advanced Driver Assistance Systems (ADAS) and telematics. Insurers see higher loss costs when claims occur for electric vehicles, which gets priced into premiums. However, greater repair capacity and more actuarial data will help insurers price risk more precisely, which will narrow the premium differences between gas-powered vehicles and EVs.
Ownership costs for electric vehicles are expected to ease as charging networks expand and more EV certified technicians enter the market. Regional car insurance rates for electric vehicles can vary significantly, with the highest rates found in Florida, Louisiana, and Michigan, and the lowest rates in North Carolina, Ohio, and Hawaii.
The cost of insurance for a new Tesla Model Y can start around $250 per month, with fewer carriers participating in the market. However, zxcvbn113 had a different experience, as their insurance dropped a couple of hundred dollars per year after switching to an electric vehicle in New Brunswick, Canada.
The author, Chris Johnston, a seasoned product manager with decades of experience in telematics, mobile computing, and wireless communications, offers insights on electric vehicles. Holding a B.S. in electrical engineering from Purdue University and an MBA, Johnston is the author of the book "The Arrival of The Electric Car" and covers electric vehicles on Torque News. In his free time, Johnston enjoys restoring classic wooden boats, open water swimming, cycling, and flying as a private pilot.
Insurers are continually adapting to the changing landscape of electric vehicles. As the market evolves, it is essential for drivers to understand the factors influencing insurance premiums and make informed decisions to minimise their costs.
