Nowadays, owning a vehicle is a necessity, whether to go to work, run personal errands or travel. However, the traditional combustion engine in cars is gradually becoming outdated as it produces a number of air pollutant emissions that have a negative impact on the planet. For that reason, traditional engine vehicles are quickly being replaced by electric ones as they prove to be a much better fit for the environment.
In general, an electric vehicle (EV) uses an electric motor for propulsion and provides plenty of benefits including zero tailpipe emissions, lower maintenance, and better performance. For example, about 71% of Canadians are now considering buying an electric vehicle because of these advantages.
But, as is the case with other vehicles, you need car insurance to protect your EV. If you are one of those people who have recently jumped on the electric car wagon, read this article to learn everything about electric car insurance, including the types of coverage available, its overall cost, and how to save on your premium.
Types of car insurance coverage for electric vehicles
Every driver is required by law to obtain auto insurance, whether they own a petrol or an electric car. Keep in mind that your auto insurance policy needs to include the following four types of mandatory coverage:
- Third-party liability coverage;
- Property damage coverage;
- Uninsured automobile coverage;
- Accident benefits coverage.
For example, liability coverage is the first mandatory coverage in Canada that provides financial and legal protection in the event of damages or injuries that a driver causes to another person, their vehicle, or property. It pays for medical expenses, vehicle repairs, court fees, and settlements up to a certain coverage limit which varies by province.
Optional types of coverage for electric vehicles include collision, comprehensive, and accident forgiveness coverage. For example, accident forgiveness coverage is the most popular among drivers as it protects their driving record and prevents their premiums from increasing if they have an at-fault accident claim.
The cost of electric car insurance
When compared to standard car insurance, electric car insurance is more expensive because of several factors. For example, the biggest one is that EVs cost more, suffer damages more easily and have higher repair costs, especially those with more advanced technology features. Whether the car battery breaks down or another car part needs to be replaced, not all mechanics have the skills or tools to work on these vehicles and do the repairs, which is why the EV insurance rates may be higher.
The type of electric vehicle you own can also affect the cost of your EV insurance rate. There are typically three types of EVs, including battery, hybrid, and plug-in hybrid electric cars, whose premiums may differ among different providers.
Other factors that are used to determine the cost of electric car insurance are the same as the ones when you are taking out any normal policy. These include your driving record and history, where you live, your car mileage, and coverage selections.
Saving on Electric Car Insurance
Although electric car insurance is more pricey, there are some ways you can save on your premium. For example, shopping around is the best way to lower your EV insurance costs. This requires you to compare different quotes from multiple insurance providers to see which ones offer the best coverage for a fair price. To make an informed decision, consult with an insurance broker to help you along and find affordable EV insurance that suits your budget and needs.
Asking for discounts is another easy way to save on your EV insurance premiums. Some insurance companies offer green car and alternative fuel discounts, as well as traditional discounts for safe drivers, good students, as well as bundle insurance.
Final thoughts
Electric cars are a big hit these past few years, revolutionizing the entire automobile industry and replacing petrol and diesel vehicles. They are very popular because of the many benefits they offer both humans and the environment, making people upgrade to an electric ride for their next purchase.
But, as is the case with other vehicles, all EV owners need to have auto insurance. So, if you are new to electric cars, refer to our article and read everything you need to know about electric car insurance.
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