Owning An Electric Vehicle Could Get You A Sweet Deal On Car Insurance

Drivers of electric vehicles might have to hand over a bigger wad of dough to buy their cars, but it could be worth it, if they get a good deal on insurance due to their status as EV owners. It could partly be due to the fact that often, EV drivers are more careful and tend to get in less accidents.

USA Today says insurance costs do vary widely depending on driver history, local crime and theft rates, but in general, EV owners should be able to expect a lower insurance premium.

“When you look at electric vehicle owners, you probably have a pretty careful bunch there,” said Jack Nerad, market analyst at Kelley Blue Book. “They’re probably pretty mature, and they’re not the young twentysomething male who gets into the most fights and has the most car accidents.”

Some insurers are even starting to compete to lure EV owners in with special policies, because having those customers will likely prove to be a smart business move.

From USA Today:

The average premium for a 2012 Volt owner who drives 15,000 miles annually is about $1,452 a year for the first five years, according to research site Edmunds.com’s True Cost to Own estimates. That compares with about $2,024 for a cheaper gas-engine 2012 Cadillac CTS, for example.

The extend-range Volt, which can go up to 35 miles on electric alone before a gasoline motor kicks in, starts at $39,995 with shipping; the CTS starts at $36,810.

There are circumstances where owning an electric car might actually prove to be more of an insurance burden, however — some insurers are wary of the fact that if an EV gets in an accident, it’s harder to fix than a normal car, and parts are more expensive.

Owners of costly electric cars save money on insurance [USA Today]


Edit Your Comment

  1. Loias supports harsher punishments against corporations says:

    Getting into fights is factored into your car insurance? What an odd thing to say.

    • Hibyeman says:

      Because your car is more likly to be vandalized if you get into lots of fights

    • kc2idf says:

      Why is that odd? If you are more likely to get into fights, I would expect you are also more likely to succumb to road rage.

  2. MrMagoo is usually sarcastic says:


    • Loias supports harsher punishments against corporations says:

      I was going to disagree with you as my initial reaction, but upon some longer reflection I have to agree with your grammar assessment.

    • Blueskylaw says:

      Fewer would be the correct word.

      Less = things that can’t easily be counted (Less sunshine, not fewer sunshine)

      Fewer = things that can be counted easily (Number of accidents or the number of items on a grocery store belt)

  3. Hi_Hello says:

    those are a lot of numbers…

    how about we unite and only buys cars under $20,000 and let the market create cheaper gas non gas cars?

    • TheMansfieldMauler says:

      You first.

      • Hi_Hello says:

        no problem.
        I always believe you should do stuff before asking people to do it too.

        After my first car shopping experience, I don’t buy anything over $10,000 grand.
        My current car cost about $4,000 and my motorcycle was $3000 ish.. I think.

        the car I”m looking to get my mom is around $13,000 but I’m hoping to find one closer to $10,000.

        • TheMansfieldMauler says:

          My current car cost about $4,000

          That’s great. What kind of mileage do you get when towing your bass boat?

          • Hi_Hello says:

            I”m sorry, but I don’t tow stuff. So I don’t know much about that.

            Will a Mazda Scrum Mini Truck be able to tow a bass boat?

            • TheMansfieldMauler says:

              I’m sure it can move it around in a parking lot. I don’t think it can haul it 70 MPH for 2 hours with the A/C on to get to the lake and then haul it back out up a steep wet boat ramp and go back home.

              The point is, some people use their cars (and trucks) for more than just driving around town, and some of those uses require something more substantial (and expensive) than a $4K Accord or $10K Hyundai or whatever.

              • Hi_Hello says:

                That’s why I said $20,000. Even though I spend way less than that, I figure there are people who need other things.

                If the average car, the one used by most people to get from point A to point B is under $20,000, I think this will change the type of cars out there.

                the volt and the CTS are just used to get from point A to B.

                I was in the market for a small truck to tow my motorcycle or a canoe and some kayaks. And some building material like drywall. There is no such thing as a small truck anymore!!

                While I was overseas, I saw a lot of small trucks that would be perfect for me. But I’m just a minority.

        • Loias supports harsher punishments against corporations says:

          New or used?

          Used cars cost less because someone bought them new. If every bought used then they would cost as much as new cars. So was that $4,000 car new or used? Thought so.

          • Hi_Hello says:

            what’s wrong with have most brand new sedan prices under $20,000?

            • Loias supports harsher punishments against corporations says:

              That would be great. I assume you’ve made your groundbreaking proposal to lower parts, labor, manufacturing, and shipping costs nation-wide to GM, Chrysler, and Ford, right?

              • Hi_Hello says:

                aren’t there a lot of new cars (sedan) under $20,000 already?

                I’m sorry, I haven’t look at the prices of new cars in awhile that why those car close to $40,000 seem high to me.

                the last time I checked on car prices, the highest I saw was about 16,000 euros.

    • crispyduck13 says:

      I’m 29 and so far have never exceeded $10k for a car. Maybe it’s because i grew up being driven around in older used cars, when I got out on my own in life I simply didn’t feel the need to finance a brand new car.

      My 1997 Prelude looks as good as anything new on the road today (IMHO of course), gets 28mpg and costs pennies to fix when something breaks. I spent $4500 to buy that car. I prefer that arrangement to going to the dealer for every little thing to not void my warranty.

      • Papa Midnight says:

        1999 Nissan Altima with over 205.5k miles on it. Averaging a combined 30mpg based on my driving habits (and the total vehicle loaded weight). I completely understand where you’re coming from.

    • JJFIII says:

      Who the hell are you to tell me how much money I should spend on a car? If the VOLT gets me from point A to Point b with lower insurance cost AND virtually no gas cost, I am actually better off than you and your Prelude. I decide how to spend MY money, not some moron who thinks that they should start a movement that quite frankly is as stupid as don;t buy gas on Tuesday.

      • Hi_Hello says:

        i wasn’t telling… I was just asking.
        it’s okay if you think it’s a bad idea.

  4. Important Business Man (Formerly Will Print T-shirts For Food) says:

    Lol, I live in a college complex and I know the owners of all 5 Volts/Leafs in my complex. Party animals! I party with them all the time!

  5. TheMansfieldMauler says:

    Don’t be fooled by this “article” into thinking that insurance companies have factored “mature” and “careful” drivers into EV car insurance rates. All those decisions are made through actuarial analysis of actual gain/loss numbers over time.

    All this is saying is that companies have figured out a way to market based on price, and perhaps that now that there are enough numbers to make policy premium adjustments, some companies have started competing for that market by lowering the premium to be more in line with actuarial expectations.

    • partofme says:

      What is this madness? Letting companies adjust their risk/profit profile can actually lead to results that some people like?!?! Say it ain’t so! The soulless corporation must have an evil soul, so I can HATE HATE HATE!!

  6. AEN says:

    Maybe they get better rates because they can only go 40 miles on a charge.

    • Lyn Torden says:

      Exactly. Which impacts total miles driven per day.

      • iConsumer says:

        They go just as far as regular cars (and further, depending on the comparison). The 40 mile estimation/limit is only for electric-only operation. After that it uses a combination of gas and electric to achieve 300+ miles on a tank.

    • Chmeeee says:

      I er uh, the example in this article is the Volt, which has unlimited range.

      • partofme says:

        Only if you use “unlimited” in the same way cell phone companies do.

        • Chmeeee says:

          I use unlimited to describe whether or not I could feasibly drive the car cross country, stopping for no more than a few minutes at a time. The Volt fits that criteria.

          • partofme says:

            Thankfully, I actually am a rocket scientist (just taught Breguet, Tsiolkovsky, staging, etc. this semester). You’re using an unconventional (read: wrong) definition of range. I suggest you ask the EPA what range means for automobiles.

            • Chmeeee says:

              I suppose that my definition here could be unconventional, but even by the definition you would be using, AEN’s estimate of 40 miles is wildly inaccurate.

              • partofme says:

                Ahh, but AEN didn’t use the word range (which has a real definition). He said, “on a charge.” While misleading, this statement could potentially be true. “Unlimited range” cannot be true… unless, like I said, you’re a cell phone company.

                Even if we say AEN was flat out wrong, I’d rather someone be wrong by an order of magnitude than by a singularity… purely from an engineering perspective, of course.

      • smartypants503 says:

        So they just have to charge it once and then it can go an UNLIMITED amount of miles? These things must be flying off dealer lots. Why don’t we fuel the space shuttles with this technology?

        • Chmeeee says:

          It’s not rocket science. You have a limited range on straight electric. Then you continue on gas, limited only by the limit on your credit card for stopping at gas stations.

    • baristabrawl says:

      We have a LEAF. I don’t understand why everyone and their damn dog cites the Volt as an all-electric car. Seriously? Mine is all electric and I get around 100 miles to a charge. And GM can kiss the fattest part of my ass.

  7. CommonSense(ಠ_ಠ) says:

    I assume these policies will not cover the failure of the batteries and that is why they will be cheaper.

    • az123 says:

      Um, insurance does not cover repairs on the vehicle anyway… accident and theft.

      I will assume you were trying to make some sort of point about the cost of these, but really it does sound dumb the way it was phrased

      • CommonSense(ಠ_ಠ) says:

        Full coverage normally covers repairs.
        I can make a claim on my car for a non-accident damage.

        • mrvw says:

          This is not to be rude or say you are incorrect…
          but Full Coverage generally refers to having Liability coverage and comp/collision. Comp/collision doesn’t cover repairs of stuff that just breaks, you have to be involved in an accident

        • Chmeeee says:

          You have some sort of magic car insurance. I would like to subscribe to your newsletter.

        • Back to waiting, but I did get a cute dragon ear cuff says:

          Like when your breaks wear out or your starter goes? I assume it also covers timing belt replacements.

    • Kuri says:

      Because the failure is 100% /s

  8. GenXCub says:

    This is the case with a lot of cars. I switched from a Mazda3 (~18k msrp) to a Mini Cooper (~23k msrp), and my insurance dropped over 20%. I was told that mini’s just get into fewer accidents by my insurer (state farm)

    • Kuri says:

      My family’s car insurance had a similar dive when we got a Saturn Outlook, but that was due to all of the safety stuff in it.

  9. az123 says:

    One huge factor in calculating insurance is accident statistics on the vehicle. When you have an “unclassified” vehicle it tends to mean that there are so few of them on the road and so few accidents they cannot get proper statistics to determine the rate. I have owned several classic and exotic (rare in US at least) cars and this has happened with them. For some strange reason this class of vehicles has lower insurance. I have actually paid less a year for insurance on a high performance sports car than a daily driver (with comparable insurance) because of this

    In reality the more of these vehicles that get on the road the more information they get and the wider the “group” of people that is driving them. Rates will adjust as the statistics for cost per accident on the EVs becomes more mainstream.

  10. Jade says:

    That’s totally crap. I drive an electric car and my insurance boosted up my insurance because according to them if I were to get in accident the repairs would cost far more. Which is ridiculous because electric car parts usually cost less than regular car parts.

    • Loias supports harsher punishments against corporations says:

      Better get some other quotes.

    • nerble says:

      Actually, it depends. Additionally, the cost of working on hybrid and electric vehicles is insane. You have to wear linesman’s gloves just to work on them, and even if you disconnect the battery, the car is built to build up a charge just by rolling. Ergo, repair shops charge an arm and a leg to fix them because it’s practically hazardous duty.

    • shepd says:

      I assume you’d get a significantly cheaper rate if you dropped the comprehensive part of your policy?

  11. Jade says:

    That’s totally crap. I drive an electric car and my insurance boosted up my insurance because according to them if I were to get in accident the repairs would cost far more. Which is ridiculous because electric car parts usually cost less than regular car parts.

  12. Sian says:
  13. Kuri says:

    In before the mentioning of battery explosions and strip mining.

  14. AustinTXProgrammer says:

    $1,452 as a good deal? I have TWO vehicles with full coverage and $350k in liability coverage for LESS than that. One of the cars is a BMW M3.. Not cheap to to insure. I could know my insurance costs down a couple hundred if both my wife and I had matching minivans.

  15. AllanG54 says:

    Full electric cars have only been out for three years and they haven’t sold bunches of them. I wonder how the actuaries came up with these stats so quickly. Many of these cars accelerate much quicker than a gas engined vehicle as well.

  16. shepd says:

    I pay $1300 a year to drive a Crown Victoria, and this is in a province traditionally regarded as having the highest insurance premiums in all of North America. You don’t have to have an electric car to drive a car that only “safe” drivers drive. In fact, you can drive the exact opposite of one.

    The weirder thing is that for the other vehicle I have, a Jeep Grand Cherokee, I pay ~$1100 a year insurance. Significantly cheaper than the other options. Perhaps even safer people drive those?

  17. Apeweek says:

    Volt’s pre-tax credit price is $39,145, not $39,995.

    However, every article that mentions the Volt’s $39k price tag also needs to mention that NOBODY actually pays that for a Volt. It’s $31,645 after rebates.

    It also leases for $349/month – which is a good way to drive an EV, as the technology is changing quickly, you don’t want to get stuck with a technologically obsolete car for several years.

    $349/month is also a really great price, considering it’s easy to save $150-200 per month by burning electricity instead of gasoline.

  18. britswim04 says:

    Our office just installed 4 EV chargers out front, which would be JUST enough to get me to trade in my VW GTI for a Volt or Model S… Except they’re not in the shade and I am NOT parking in direct sunlight in Texas Summer. Not a chance in hell.