Car dealers sold a record 1.3 million electric vehicles in 2004, marking a significant milestone in their growing popularity. If you’re considering purchasing an electric vehicle in New Jersey, you may be curious about the differences in insuring your EV. While policies for gas-powered, hybrid, and electric vehicles are fundamentally similar, there are some distinctions drivers should be aware of. Creative Risk Management LLC can help you find the right auto insurance policy for your electric vehicle.
Why Electric Vehicle Policies Have Higher Premiums
The most notable difference is the cost of insuring an electric car. Insurance premiums for EVs can be up to $2,800 higher annually compared to gas-powered vehicles. Several factors contribute to this increased cost. First, electric vehicles often have a higher sticker price than their gas-powered counterparts. Generally, the more expensive the car, the higher the insurance premiums will be. However, in recent years, manufacturers have introduced more affordable EV models, which have insurance rates comparable to traditional vehicles.
Another factor influencing EV insurance costs is the specialized parts required for repairs, which are typically more expensive to replace. Additionally, not all mechanics are equipped to repair and maintain EVs, making it more challenging to find reliable service providers. These factors contribute to higher repair costs, which in turn affect insurance premiums.
Additional Considerations for EV Owners
While EVs often have lower maintenance costs, which can help offset insurance expenses, the coverage options for EV insurance policies remain the same. These include liability, comprehensive, collision, and uninsured/underinsured motorist coverage. It’s also worth considering additional coverage for specific parts, such as the battery. Shopping around for the best rates is a smart approach, as some insurance carriers offer discounts for electric vehicles.
Secure an auto insurance policy tailored to your electric vehicle by working with Creative Risk Management LLC, proudly serving New Jersey residents. Contact our office today to begin exploring the right policy for your needs.
