How to Save Money on Electric Car INSURANCE

Electric cars are becoming more popular and affordable, as they offer many benefits over conventional cars, such as lower emissions, higher efficiency, and lower maintenance costs. However, one of the drawbacks of owning an electric car is the high cost of insurance.

According to a 2020 study by NerdWallet, electric car owners pay an average of $2,118 per year for full coverage insurance, which is 21% more than the average for gas-powered cars¹. This is because electric cars tend to be more expensive, more prone to theft, and more costly to repair than gas-powered cars².

However, this doesn’t mean that you have to pay a fortune to insure your electric car. There are many ways to save money on electric car insurance, and in this blog post, we will share with you 10 tips to help you lower your premiums and get the best deal possible.

10 Tips to Save Money on Electric Car Insurance

Here are 10 tips to save money on electric car insurance, based on expert advice, user feedback, and industry data:

• Shop around and compare quotes. One of the easiest and most effective ways to save money on electric car insurance is to shop around and compare quotes from different insurers. You can use online tools, such as NerdWallet, The Zebra, or Insurify, to get free and personalized quotes from multiple insurers in minutes. By comparing quotes, you can find the best coverage and price for your needs and preferences.
• Choose a higher deductible. Another way to save money on electric car insurance is to choose a higher deductible, which is the amount of money you have to pay out of pocket before your insurance kicks in. By choosing a higher deductible, you can lower your monthly or annual premiums, as you are taking on more risk and responsibility. However, you should only choose a higher deductible if you can afford to pay it in case of an accident or a claim.
• Bundle your policies. If you have other types of insurance, such as home, renters, or life insurance, you can save money on electric car insurance by bundling your policies with the same insurer. Many insurers offer discounts for customers who buy multiple policies from them, as this increases their loyalty and retention. You can also save money by insuring multiple vehicles with the same insurer, if you have more than one car in your household.
• Take advantage of discounts. There are many discounts that you can qualify for when buying electric car insurance, depending on your insurer, your car, and your driving habits. Some of the common discounts that you can look for are:
  • Low mileage discount: If you drive less than the average driver, you can save money on electric car insurance, as you are less likely to get into an accident or file a claim. Some insurers offer discounts for drivers who drive less than 10,000 miles per year, while others use telematics devices or apps to track your mileage and adjust your premiums accordingly.
  • Safety features discount: If your electric car has advanced safety features, such as anti-lock brakes, airbags, or blind spot detection, you can save money on electric car insurance, as you are less likely to get injured or cause damage in an accident. Some insurers offer discounts for drivers who have safety features installed in their cars, while others require you to provide proof of installation or certification.
  • Anti-theft devices discount: If your electric car has anti-theft devices, such as alarms, immobilizers, or tracking systems, you can save money on electric car insurance, as you are less likely to have your car stolen or vandalized. Some insurers offer discounts for drivers who have anti-theft devices installed in their cars, while others require you to provide proof of installation or certification.
  • Good driver discount: If you have a clean driving record, with no accidents, tickets, or claims in the past few years, you can save money on electric car insurance, as you are considered a low-risk driver. Some insurers offer discounts for drivers who have a good driving record, while others use telematics devices or apps to monitor your driving behavior and reward you for safe driving.
  • Good student discount: If you are a student, or have a student in your household, who has good grades, you can save money on electric car insurance, as you are considered a responsible and mature driver. Some insurers offer discounts for students who have a GPA of 3.0 or higher, while others require you to provide proof of enrollment or transcripts.
  • Affinity group discount: If you are a member of a certain group, such as a professional association, a alumni network, or a credit union, you can save money on electric car insurance, as you are eligible for group discounts. Some insurers offer discounts for drivers who belong to certain groups, while others require you to provide proof of membership or affiliation.
• Drive safely and responsibly. One of the most important and obvious ways to save money on electric car insurance is to drive safely and responsibly, as this will help you avoid accidents, tickets, and claims, which can increase your premiums and deductibles. You can also improve your driving skills and knowledge by taking a defensive driving course, which can also qualify you for a discount with some insurers.

• Maintain a good credit score. Your credit score can affect your electric car insurance rates, as it reflects your financial responsibility and trustworthiness. Insurers use your credit score to determine your risk level and your likelihood of paying your premiums on time. A higher credit score can lower your electric car insurance rates, while a lower credit score can raise them. You can improve your credit score by paying your bills on time, keeping your credit card balances low, and checking your credit report for errors.
• Pay your premiums in full or annually. How you pay your electric car insurance premiums can also affect how much you pay. If you pay your premiums in full or annually, you can save money on electric car insurance, as you can avoid interest charges, installment fees, or late fees that may apply if you pay your premiums monthly or quarterly. You can also save money by setting up automatic payments, which can prevent you from missing a payment or paying a penalty.
• Switch to a cheaper or more efficient car. The type of car you drive can have a significant impact on your electric car insurance rates, as it affects the cost of repair, the risk of theft, and the environmental impact. If you want to save money on electric car insurance, you may want to switch to a cheaper or more efficient car, as this can lower your premiums and deductibles. You can also save money by choosing a car that has a lower depreciation rate, a higher safety rating, or a lower emission level.
• Review your coverage and deductibles regularly. Your electric car insurance needs and preferences may change over time, depending on your life situation, your driving habits, and your budget. Therefore, it is important to review your coverage and deductibles regularly, at least once a year, and adjust them accordingly. You may want to increase or decrease your coverage or deductibles, depending on your current needs and preferences. You may also want to add or remove optional coverages, such as collision, comprehensive, or roadside assistance, depending on your current needs and preferences.

• Cancel or suspend your coverage if you don’t use your car. If you don’t use your car for a long period of time, such as when you are traveling, working from home, or living abroad, you may want to cancel or suspend your electric car insurance, as this can save you money on premiums and deductibles. However, you should only do this if you are sure that you won’t need your car for a while, and that you have a safe and secure place to store it. You should also check with your insurer, your state, and your lender, if you have one, about the rules and requirements for canceling or suspending your electric car insurance.

Conclusion

Electric car insurance can be expensive, but it doesn’t have to be. By following these 10 tips, you can save money on electric car insurance and get the best deal possible. You can also use online tools, such as NerdWallet, The Zebra, or Insurify, to compare quotes from different insurers and find the best coverage and price for your needs and preferences.

We hope that this blog post was helpful and informative for you, and that you learned something new and useful about how to save money on electric car insurance. If you have any questions, comments, or suggestions, please feel free to leave a comment below!

SUMMARY: Buying electric car insurance can be tricky, as there are many factors to consider and compare. However, some people make common mistakes that can cost them more money, reduce their coverage, or expose them to risks. Here are some of the common mistakes to avoid when buying electric car insurance:

• Not shopping around and comparing quotes. Different insurers may offer different rates and discounts for electric car insurance, depending on your car, your driving record, and your location. By shopping around and comparing quotes from multiple insurers, you can find the best deal and coverage for your needs and preferences. You can use online tools, such as NerdWallet, The Zebra, or Insurify, to get free and personalized quotes from different insurers in minutes.
• Not choosing the right coverage and deductibles. Electric car insurance typically requires the same coverage types as regular car insurance, such as liability, collision, comprehensive, and personal injury protection. However, you may also need extra coverage options, such as coverage for EV chargers, batteries, or roadside assistance. You should choose the coverage and deductibles that match your needs and budget, and not overpay for unnecessary or insufficient coverage. You should also review your coverage and deductibles regularly, and adjust them accordingly.
• Not taking advantage of discounts and incentives. Electric car owners may qualify for various discounts and incentives that can lower their electric car insurance premiums, such as low mileage, safety features, anti-theft devices, good driver, good student, affinity group, or bundling discounts. You should ask your insurer about the available discounts and incentives, and provide the required proof or documentation to claim them. You should also check with your state and federal government about the tax credits or rebates for buying or owning an electric car, which can offset some of the insurance costs.
• Not driving safely and responsibly. Driving safely and responsibly is not only good for your safety and the environment, but also for your electric car insurance rates. By avoiding accidents, tickets, and claims, you can maintain a clean driving record, which can lower your risk level and your premiums. You can also improve your driving skills and knowledge by taking a defensive driving course, which can also qualify you for a discount with some insurers.
• Not considering the total cost of ownership. Electric car insurance is only one of the expenses that come with owning an electric car. You should also consider the other costs, such as the purchase price, the depreciation, the maintenance, the charging, and the registration fees. You should compare the total cost of ownership of different electric cars, and choose the one that fits your budget and lifestyle. You should also look for ways to save money on these costs, such as choosing a cheaper or more efficient car, paying your premiums in full or annually, or canceling or suspending your coverage if you don’t use your car.

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