Electric Car Insurance Guide

If you're thinking about purchasing an electric car or hybrid vehicle to conserve energy and maintain your eco-friendly lifestyle, make sure you understand what the insurance premium for your vehicle will be. While some insurance companies may offer a discount on electric car insurance policies, many insurance providers still charge you a premium price for insurance coverage because they use a formula that only takes into account the make and model of your vehicle. Even though your car will be making a smaller carbon footprint, the risk of your car getting stolen, broken into or damaged in an accident is generally the same as a standard vehicle.

Here are some important things to keep in mind when insuring an electric car:

Shop Around for the Best Rates
Auto insurance providers are competing for your business and may be able to extend you a discount or special offer if they know you are shopping around. Don't be afraid to shop at least three or four insurance providers to find out what the rate would be for insuring your electric car, and if you qualify for any types of driver discounts.

Consider the Cost of Accident Repairs
If you are purchasing a brand-new electric car that falls in the luxury class or has a high sticker price, you could end up paying a higher-than-average insurance premium. Remember that insurance companies will factor in the cost of repairing a vehicle, regardless of whether your vehicle is an electric car or a gasoline-powered car. If parts for your car cost higher than average, you may be paying the price with a costly insurance premium.

Be Honest About Usage
Make sure your insurance provider knows how many miles you plan to drive the car, on average, each month and year, and what the primary purpose of the car will be. If your electric car is just going to be used as a leisure vehicle and will be staying in your garage for most days of the week, you may not need comprehensive car insurance. You may also qualify for a low mileage discount if the car is not driven over long distances. Your insurance provider also needs to be aware of any advanced anti-theft devices or safety features on the vehicle. Your electric car insurance rates could be lower when you take steps to reduce the risk of theft or damage to the vehicle with security devices.

Not all insurance companies extend a discount to owners of electric cars, and in many cases, you'll find that electric car insurance is actually higher than the average. Use the tips above to make sure you are getting the best rate on car insurance for your electric vehicle.

Sources:
Carseek.com: Electric Car Insurance Discount: Reality or Myth?
NetQuote: Electric Car Insurance -- Where Does the Coverage Begin/End?
AllCarsElectric: Could Your Electric Car Insurance May Be Higher Than You'd Expect?