Is EV Insurance Too High? Unpacking the Costs and Benefits
Download MP3Key Points:
When purchasing an electric vehicle (EV), consider not only the price, usage, and maintenance but also the insurance.
When purchasing an electric vehicle (EV), consider not only the price, usage, and maintenance but also the insurance.
- Why Insurance Might Be Higher for EVs:
- Collision Coverage: Standard auto insurance generally covers collision damage, liability, theft, and physical damage (like flooding).
- Engine vs. Battery:
- For gasoline vehicles, the engine is a valuable part but is usually protected during a collision.
- For EVs, the battery is the most valuable component and is integrated into the floor of the car, making it more susceptible to damage.
- Repair Costs:
- The cost of replacing a damaged EV battery can be significantly higher compared to a gasoline engine, impacting insurance premiums.
- Battery damage can occur from side impacts, curbs, or floods, unlike gasoline engines which are more protected.
- Insurance Risks:
- EVs present a higher risk of expensive claims due to the cost of battery repairs and potential damage to electric motors located at each wheel.
- Insurance companies factor these risks into their pricing, leading to higher insurance costs for EVs.
- Considerations:
- Before purchasing an EV, obtain and review insurance quotes to ensure the costs align with your budget.
- Additional Information:
- Live Consultations: For personalized advice, visit actualhuman.com to book a one-on-one consultation with experts in various fields, including insurance, real estate, and more.
- Host Background: The host is a certified real estate title examiner, civil court mediator, and experienced entrepreneur who has developed and sold several businesses.
- Call to Action:
- Check the insurance rates for electric vehicles before making a purchase decision to avoid unexpected costs.
Thank you for tuning in to this episode of Actual Human Advisory on Describe TV.
