Why Are Electric Cars Expensive To Insure

If you have collision coverageand your electric car is totaled a claim to replace the more expensive car will be higher.

Why are electric cars expensive to insure. Insurance experts say electric cars can attract higher premiums but they are coming down. A car that costs 10 000 more to buy will potentially cost more to insure as well. As an example the cheapest electric car to insure between march 2019 and march 2020 the nissan leaf costs an average of 623 a year. As is the case with other auto segments some vehicles are inherently more expensive to cover than others.

Why are electric cars more expensive to insure. However this extra outlay may be negated by the reduced costs in running them. Why do electric cars cost more. Electric cars are fairly new to the market and they use technology that isn t as wide spread as standard petrol cars as such they can be more expensive to repair and therefore also insure.

And although electric cars require less service than their gas counterparts it can cost more to repair. The tesla model s pictured above during crash testing. Electric cars are mainly so expensive because of the development costs associated with bringing new technology to the market. A mercedes benz s class is on average just 798.

The more a car is worth the more an insurance company has to pay if it s totaled or stolen. Providers take this into account when calculating premiums. One of the reasons is the cost of repairs. Those development costs will end up being passed down to the consumer in the way of a higher overall vehicle price.

Sports cars and high end luxury vehicles are usually much more expensive to insure because of repair costs. The finishes in these vehicles is often much more expensive than the materials used in a more moderately priced vehicle says carole walker executive director with the rocky mountain insurance information association. The other assumption behind the higher numbers is that an electric vehicle will cost more to repair. Summary at the moment electric cars almost always cost more to insure.

It costs an average of 1859.