Being eco friendly also means that you need to understand your coverage.
After many struggles over several decades, the electric car is finally starting to get some mainstream attention, but many would-be drivers are still finding that the cost of auto insurance is holding them back from purchasing the vehicles that they would like to drive.
The cost of insuring these vehicles – which are already on the pricy side – is presenting a setback.
Though slow progress is being made in the introduction of electric cars as people want to make choices that are more environmentally friendly, the price tag of the vehicle isn’t the only concern anymore. Now, auto insurance can be the barrier that comes between an interested buyer and an actual purchase.
The cost of auto insurance for an electric vehicle is negating the benefit of savings from avoiding gasoline.
Cars that are completely electric are already the most pricey in their class sizes, so adding additional long term costs through ongoing auto insurance premiums that are more expensive than a standard gas guzzlers can make their ownership cost prohibitive. Though many people would like to reduce the emissions caused by the cars they drive, they still need to be able to afford the cost of their choices.
The reason that auto insurance for electric cars is as high as it is, is that servicing and parts can be very expensive. This means that when claims are made, they are typically more costly to insurers.
Although many insurers have tried to make things more appealing and affordable by offering discounts for driving green vehicles, they still need to make sure that they can afford to cover the costs associated with claims, so they will typically make up for it in other ways. This is especially true for the owners of new vehicles, who will typically require the largest amount of coverage, particularly in comprehensive and collision, so that the policy will cover anything that happens to the new car.
The hope is that as electric cars become more commonplace, the cost of repairing and replacing them will begin to shrink, and so will their auto insurance premiums.