Electric vehicles offer some impressive cost savings in a variety of areas. If you’re able to access cheap rates of home electricity, then they bring considerably lower running costs than a typical petrol or diesel car, while the performance that they offer is usually a lot greater than a like-for-like internal combustion-engined vehicle. Here at Prestige Cars Kent, we’ve got many excellent pre-owned EVs, so if you’re looking to make the switch, then get in touch today.
But one area where electric vehicles can’t quite compete is insurance. Are electric cars expensive to insure? In most cases, you’ll find that EVs command higher premiums than an equivalent petrol or diesel car. But why is this, and is there anything you can do to help? That’s what we’ll be looking into through this article.
Car values
Electric vehicles do, on average, cost more than their petrol and diesel equivalents. A lot of this comes through the more advanced technology used by electric vehicles, as well as the cost of producing and installing the batteries. Electric vehicles also use high-voltage systems, which require additional expense to install and are more complex to produce in the first place.
Calculating insurance is based on cost and risk, which is why electric vehicles, since they cost more to begin with, are seen as a greater risk by insurers. This, in turn, contributes towards higher premiums.
Repair costs
Because of these more complex designs, electric vehicles do cost more to repair should an accident happen. You’ll find that electric vehicles are also equipped with some of the very latest sensors and accident detection equipment housed within their bumpers, which can be damaged during an impact and prove costly to repair.
Insurers have to take these additional costs into account when calculating premiums, and since EVs prove more expensive to repair, this is reflected in the cost to insure them.
Performance
Against your typical petrol or diesel car, an electric vehicle will usually offer a lot more in the way of performance. Take the Vauxhall Corsa. Even in its highest state of tune, it produces 128bhp and brings a 0-62mph time of 8.7 seconds. Switch to the Corsa Electric and you’ll find power increased to 154bhp in most powerful variants, and this brings a 0-60mph time of 8.2 seconds.
You’ll find a similar theme across the board with electric cars, too. It’s this additional power output which makes them a more expensive proposition from an insurance perspective.
Specialist knowledge needed for repairs
While you can take pretty much any petrol or diesel car to a nearby garage, things aren’t quite so straightforward for electric vehicles. While ‘regular’ garages will be able to perform regular repairs to aspects such as brakes or tyres, more specialist knowledge is required when it comes to working on the high-voltage batteries or other more complex areas of the car.
The good news is that here at Prestige Cars Kent, we’re more than happy to help with your electric vehicle, while our comprehensive warranty is available to add extra peace of mind to any purchase. Get in touch with a member of the team today to find out more.
Greater costs for recovery
There’s one additional cost, which is greater for electric vehicles - the cost of recovery in case a fault arises. While conventional petrol or diesel cars can easily be towed away or put onto a low-loader, electric vehicles cannot be towed - it can risk damage to the electric motors.
While it might not make a huge impact on the cost of an electric car insurance policy, it’s an additional cost that many insurers will take into account.
How can I reduce the cost of insurance on electric vehicles?
If you’re keen on making the switch to an electric vehicle but don’t want to pay too much for electric car insurance rates, then there are some measures to take to lower premium costs.
For one, make sure that you’re being accurate with the estimated mileage supplied to an insurance provider when you organise your coverage. Ensuring that you’re getting this right can have a dramatic impact on how much you're paying for a premium - don’t put down a higher mileage limit than you really need.
You may also want to consider how much excess you’re willing to pay. Essentially, an excess is the amount you’d be happy to pay for a claim before an insurance company would start to pay out. The greater the excess, the lower your premiums - but make sure it’s an amount that you’re able to pay.
Finally, you might want to add a named driver who has more experience than you. This could be a partner or family member and it could have a positive effect on your premiums. Just make sure you don’t name them as a primary driver - doing so while being the primary driver of the car is called ‘fronting’ and could result in your insurance being voided if discovered.
While insurance premiums are normally greater for electric vehicles, it’s worth thinking about the total cost of ownership. Given that they can prove to be cheaper to run and keep maintained, electric vehicles could be a more cost-efficient choice overall when compared with a petrol or diesel car. If you’d like to find out more about electric car insurance rates, then get in touch with a member of the Prestige Cars Kent team today.