Research shows that those with electric vehicles pay more for their insurance coverage
Research from NerdWallet suggests that those with electric vehicles have higher auto insurance premiums. The organization has compared the premiums that drivers of electric vehicles and those with conventional vehicles experience. The reason why electric vehicles are attached to higher auto insurance premiums is due to the relatively high costs associated with operating and maintaining these vehicles. Repairing an electric vehicle can be a costly process, which could lead to financial losses for insurance providers, which has brought about higher premiums for drivers of these vehicles.
Clean vehicles are more expensive, with leads to higher insurance costs
In California, those driving electric cars often see premiums that are significantly higher than those driving conventional vehicles powered by gasoline. While electric vehicles have grown in popularity due to the surge of interest consumers have had in clean transportation, high insurance premiums may stunt their adoption. According to the research conducted by NerdWallet, auto insurance premiums between electric vehicles and their conventional counterparts can vary by as much as 21% in California.
Tax credits may help offset the cost of auto insurance coverage
It is more expensive to repair electric vehicles as they make use of relatively new and costly technology. Many of these vehicles are also more expensive than those powered by gasoline or diesel. Typically, the more expensive a vehicle is, the higher the insurance premium that is attached to it will be. Many electric vehicles qualify for federal tax credits, however, which can make them significantly more affordable and offset the cost of auto insurance coverage.
Comparison shopping could be an ideal way to find inexpensive coverage
Comparison shopping may be the best way to find affordable auto insurance coverage no matter what kind of car a person may drive. Electric vehicles are becoming more popular among consumers, especially as automakers begin to bring more of these vehicles to the commercial market. Notably, fuel cell vehicles, which also operate off of electricity, which is generated through the consumption of hydrogen, are more expensive than the typical electric vehicle. As such, these cars may feature higher insurance premiums than vehicles powered by batteries.