How Much Is Car Insurance For An Electric Car

How Much Is Car Insurance For An Electric Car – The history of electric vehicles (EVs) goes back to internal combustion engines. Thomas Edison was a champion of electric vehicles and he and Henry Ford even worked together on an electric vehicle in 1914.

If their early work had pushed electric vehicles into the mainstream, it might be easier to insure them today. As it is right now, there are some price issues.

How Much Is Car Insurance For An Electric Car

How Much Is Car Insurance For An Electric Car

Electric cars only make up a small percentage of vehicles in Australia, but this is changing from year to year. In its August 2021 report, the Electric Vehicle Council (EVC) found that electric vehicles accounted for 1.57% of total light vehicle sales, more than double from 2020. Although Australians do not have access to the full range of electric vehicle models due to federal policy people seem to like electric cars.

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Despite this growth, we still lag behind the rest of the world – the global EV market share is around 4%, with leaders like Norway and the UK having EV sales of around 74% and 10.7% respectively. Furthermore, the subsidies and emissions targets that support electric cars are not part of our government’s transport strategy. This is holding back development as other world leaders plan to ban the sale of new petrol and diesel vehicles over the next decade.

But on an individual level, if you’re in a position to buy an electric or hybrid car, your next pit stop is likely to be a chat with your insurance company.

Currently, electric car insurance is rather expensive. But contrary to popular belief, this is not necessarily due to the high market value of the cars.

The lowest cost of these seven scenarios was $1,171. Additionally, if you take Teslas out of the equation, which are generally very expensive, the average annual premium would be around $1,415. For context, the average auto insurance premium for all vehicles is $952.

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While most auto insurance companies offer coverage for electric vehicles, the policies they currently have were originally designed with combustion engines in mind. We spoke to EVC’s policy and communications officer Alexandra Kelly about what the biggest challenges could be for the insurance industry.

The first thing Kelly points out is that insurance tends to be higher for electric vehicles, not because they cost more, but more because there is a high degree of uncertainty surrounding them. “Obviously a more expensive vehicle will have a higher premium anyway, but the reason we’re seeing electric vehicle insurance at such high prices is because it’s something new in the industry,” he says.

Kelly notes that suddenly you have this new car that isn’t really a car at all, it’s more like a computer on wheels.

How Much Is Car Insurance For An Electric Car

“So it doesn’t have an engine and it doesn’t have all the components that are in an internal combustion engine, but you apply for insurance to insure the vehicle,” he says. “The contractor will say, ‘Well, there are too many unknowns to do this competitively and safely, so we’ll increase the premium to cover all the risks we may face in funding future operations.’

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“Insurance providers are definitely becoming more aware of electric vehicles,” says Kelly. “The NRMA, for example, are really driving electric vehicles.”

As you may know, running costs for electric cars are usually lower than for conventional diesel or petrol cars. The question is, will the fuel savings outweigh the insurance costs?

According to EVC, electric cars have lower total operating costs than cars with a combustion engine. EVC says on its website that the average Australian drives around 15,000km and spends around $2,160 a year on petrol (that’s 14c per km). However, an electric vehicle covering the same distance would only have electricity costs of about $600 per year (4c per km).

Kelly agrees that the cost of insurance would not outweigh the savings in maintenance and fuel. “It would have to be a very, very high premium to do that. So you would still get the financial benefit of having an electric vehicle, despite the higher premium.”

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EVC also says that in 2018, maintenance and service savings for an electric vehicle were estimated to be around $300 to $400 per year. So you can potentially save not only on fuel costs, but also on vehicle maintenance.

Kelly adds that while there are about 20 moving parts in an EV, there are over 2,000 in an internal combustion engine. software. If you have a Tesla, your software will be updated regularly.

“You just can’t compare an internal combustion engine to an electric vehicle, they’re just not on the same page. Where you’d normally take your car in for a service every 12 months, with an electric vehicle you might not need it.” have her checked every 18 months.”

How Much Is Car Insurance For An Electric Car

According to EVC’s 2020 State of Electric Vehicles Report, there are now 2,307 public charging stations in Australia. This number has increased significantly since 2019 (more than 40%) and will continue to do so as the market expands.

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The NRMA recently partnered with the NSW Government to deliver at least 20 more fast chargers for electric vehicles across major regional corridors in the state.

When it comes to actual maintenance, Kelly says TAFES and government agencies are looking at how they can develop training courses to give technicians the skills they need to work with electric vehicles in the future.

Insurance is ultimately about risk. If the insurance company cannot determine the risk with certainty, it can understandably increase the premium to ensure that the risk is fully covered. But as knowledge about the technology expands and the facts, figures and case studies on which premiums are based increase, there is a chance that the cost of electric vehicle insurance will drop.

Most providers in Australia offer electric vehicle insurance. Go to the car insurance comparison page to see what insurances are currently on offer.

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Here, Tara McCabe writes about all areas of personal finance from banking to insurance. Tara is an expert on practical money tips, showing readers ways to live more richly while being socially conscious. She earned a BA (Hons) in English Literature from Canterbury Christ Church University.

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How Much Is Car Insurance For An Electric Car

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“sort order” refers to the original sort order and is in no way intended to suggest that some products are better than others. You can easily change the sort order of the products displayed on the page. With more insurance companies offering electric car insurance, we look at the type of coverage these new electric car insurances have, the benefits for policyholders, and how we can determine which insurers are the most popular for each individual electric car model.

When I bought my first electric car in 2013, I couldn’t use price comparison sites to choose and compare BMW i3 insurance companies because the car was too new and no data was available for it at the time. Not only that, but relatively speaking, electric cars were pretty new to the market at the time. Of course, the Nissan Leaf was already there three years earlier and the G-Wizz 10 years earlier, but EVs were insured based on their purchase price, annual mileage, zip code and generally categorized according to existing combustion car insurance data. AXA was my insurer at the time for my 51 number plate

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