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Electric Car Insurance

Electric car insurance is a policy designed to cover owners of electric cars, also called "EV" vehicles. As these cars become more popular and stake a larger share of the overall market, the need for well developed policies specific to electric vehicles will become more important to the industry. For the moment, insurance companies do not have separate or specifically designed policies set aside for owners of these particular automobiles, similar to how there are not separate provisions for car insurance pet coverage. But this should not deter any of us driving electric cars from trying to find the best possible deal on our insurance plans.

Classic Factors Shape Auto Premiums

EVs are a relatively new concept, one about to enter the mainstream with multiple companies offering production versions of these cars. So, the need to offer competitive rates and good coverage for owners of EVs will be a matter of priority for insurers as time wears on. However, as with any other private passenger vehicle out on the road today, the same classic factors come into play to determine vehicle insurance premiums.

Of course, one of those factors is the vehicle itself. In the case of a limited production electric car, this may quite possibly work against the owner financially. Unlike a typical high volume production sedan, an EV may be expensive to repair after an accident due to questions over the availability of parts. And it could also be a challenge finding qualified repair shops to handle the job, another factor potentially influencing cost.

This is only a small part of what makes up an auto premium, of course, as many drivers are well aware. A motorist with some experience behind the wheel and a demonstrated clean driving record might have no trouble getting affordable insurance for an electric car. Other factors that weigh in heavily include credit history, geography, and miles driven per year. There are certainly other variables taken into account, and different companies might take all of these variables and apply them all using slightly different formulas, which is why we get varying price quotes when we shop around for insurance. But it is safe to say that the best way to save on electric car insurance is the same way as it with any other car: do everything you can to get into the lowest risk category possible.

Insurance Discounts for Electric Cars

The perception of safety is and always has been an important factor in the calculation of auto insurance premiums. Anyone who has to pay the high premiums to insure a high end sports car can attest to this fact. Production hybrid cars have been on the market for some time now, with new models being available in this format every model year. It has become somewhat customary for auto insurance companies to award cheap auto insurance rates to drivers for choosing hybrids, and the same trend appears to be holding for electric vehicles as well. The reason for this is simple. Just as high powered sports cars as considered a higher than average safety risk because of the propensity of their owners to operate them at high speeds, so are the owners of EVs thought of by some in the industry as a lower risk because these cars are not even capable of traveling at very high rates of speed or for very long distances; and their drivers are characterized as being concerned for the environment, an attribute which would certainly lend itself to keeping speeds down and saving energy.

Risk assessment is the gold standard by which policies are issued and priced. After all, an insurance policy is nothing more than an insurer's volunteering to take on the risk of having you as a customer and protecting your property against loss. Smaller, more fuel efficient cars are becoming more popular these days, with electric vehicles outpacing all of them in the fuel efficiency department. In many ways they are looked upon as less risky to insure, for reasons beyond the scope of this discussion. As the owner of such a car you can reap the benefit.

Save Money on EV Insurance

With the introduction of production models into the North American market, it is obvious enough that electric vehicles are here to stay. The cost of ownership is somewhat high as of now, and the price of repairs steep as well because of the relative scarcity of parts and qualified service technicians. But electric vehicle owners can lower the cost of ownership by saving as much as they can on insurance. Work with your insurer and find out about all of the different discounts they offer. Determine which ones you qualify for and make sure you get all of them. Look at all the different ways to save and bring down the cost of electric car insurance to a level you can afford.

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