Tips for Insuring an Electric Car

Electric cars are a relatively new phenomenon on the streets. Many of the electric-only cars have a very limited range, and only operate at speeds up to about 30 to 40 miles per hour. Because of this, they are mandated by states to be insured, but they do not fall into established risk categories for car insurance companies. This means that some companies do not insure these cars unless they are required by the state to do so. If they do insure the the cars, the rates are usually the same as high risk vehicles.

Do not expect to buy insurance from discount car insurers.
The insurance companies that are constantly touting lower rates and big savings in the media avoid insuring electric cars. A few states like California require insurance companies doing business in the state to offer this insurance. Some of them simply do not sell car insurance in those states.

Plan on paying extra to insure your electric car.
It is expensive to repair electric cars because so few of them exist. This makes new parts scarce and used parts probably do not exist. Since they only operate at low speeds, they are at risk to be in accidents because they are somewhat below many posted speed limits. Insurance premiums above $1,000 per year are common with electric cars without a collision provision.

Rates may drop once more electric cars are in service.
Like many other things in life, as more electric cars take to the streets, insurance rates should go down. However, right now there are not hordes of these vehicles flying off of the lots, and some have gone out of production due to low sales. You should assume that high insurance rates are here for a long time when looking at electric cars.

Batteries may be an issue that should not be overlooked.
No one really knows how those batteries are going to do in accidents over the long run. The chemicals inside the batteries could cause physical issues to people in the accidents. The cost of replacing the batteries is high if they are damaged. Make sure that you discuss these issues with your agent before signing your name on a policy.

Buy a policy for electric vehicles with the same objectives in mind as any other car.
You need to be able to replace or repair your car after an accident. Collision insurance will make sure that this is possible. Your assets need to be protected from a catastrophic lawsuit. You need adequate liability insurance to cover this. If there is a loan on the vehicle, collision insurance will be required by the lender. Finally, you have to meet the state minimum requirement for financial responsibility if you are going to operate the car on public roads and streets.