{"id":44140,"date":"2023-03-03T12:03:27","date_gmt":"2023-03-03T17:03:27","guid":{"rendered":"https:\/\/autosector.com\/?p=44140"},"modified":"2023-03-03T12:03:27","modified_gmt":"2023-03-03T17:03:27","slug":"that-shiny-new-electric-car-you-bought-will-cost-more-to-insure-here-s-why","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=44140","title":{"rendered":"That shiny new electric car you bought will cost more to insure \u2014 here&#8217;s why &#8211; Autoblog"},"content":{"rendered":"<figure><figcaption>\n   A new EV sold for $58,725 on average in January. That plays a role in the fact that<br \/>\n  <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-insurance\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">insuring<\/a> an EV might cost drivers more.<br \/>\n  <span class=\"copyright\">Ram<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li><strong>Insuring an EV might differ from insuring a gas-powered vehicle.<\/strong><\/li>\n<li><strong>EVs have high-value batteries and costly electronics.<\/strong><\/li>\n<li><strong>Car-buyers should understand the nuances of EV insurance and why it might cost more.<\/strong><\/li>\n<\/ul>\n<p>There are certain nuances to insuring electric vehicles that car shoppers might want to know before they commit.\u00a0<\/p>\n<p>Electric cars have a lot of similarities to gas-powered cars, but they also bring some distinct differences. Right now, new EVs cost more on average. They have <a href=\"https:\/\/www.businessinsider.com\/startups-racing-to-supply-360-billion-electric-vehicle-battery-market-2022-4?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">powerful batteries<\/a>. And they&#8217;re more electronic than ever.\u00a0<\/p>\n<p>All of those factors could play a role in an EV owner&#8217;s insurance policy.\u00a0<\/p>\n<h2>What car-owners need to know about the cost of EV insurance<\/h2>\n<p>Drivers have a lot to weigh before going electric, like an EV&#8217;s range, <a href=\"https:\/\/www.businessinsider.com\/meet-dozens-of-startups-leading-the-electric-car-charging-market-2022-2?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">charging infrastructure<\/a>, and how it fits into their lifestyle. Variables that influence their <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-insurance\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">auto insurance<\/a> policy are equally as important, starting with cost.<\/p>\n<p>The latest estimate from NerdWallet said the <a href=\"https:\/\/www.nerdwallet.com\/article\/insurance\/how-much-is-car-insurance#:~:text=The%20national%20average%20cost%20of,of%20about%20%24179%20per%20month.\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">national average cost of car insurance<\/a> stands at about $2,148 per year. Meanwhile, the same <a href=\"https:\/\/www.forbes.com\/advisor\/car-insurance\/electric-vehicle\/#:~:text=The%20national%20average%20premium%20for,car%20and%20other%20cost%20factors.\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">for EVs is $2,280 annually<\/a>, according to a Forbes Advisor analysis. That could mean <a href=\"https:\/\/www.bankrate.com\/insurance\/car\/electric-car-insurance\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">average annual premiums<\/a> of $1,830 for a <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/chevrolet\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">Chevrolet<\/a> Bolt or $4,066 for a <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tesla\/model+s\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">Tesla Model S<\/a>, says financial services company Bankrate.\u00a0<\/p>\n<p>So why is that? Generally, more-expensive vehicles are more expensive to cover, and most EVs are, right now, have steeper price tags; a new one sold for $58,725 on average in January, according to Kelley Blue Book.\u00a0<\/p>\n<p>Their <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/battery\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:9;\">batteries<\/a> are also costly, and high in value. EVs might have less mechanical parts than an internal combustion engine vehicle, but they&#8217;re chock-full of expensive electronic components and sensors.<\/p>\n<p>&#8220;Those parts can be pricey,&#8221; according to <a href=\"https:\/\/www.progressive.com\/answers\/car-insurance-electric-vehicles\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:10;\">insurance provider Progressive<\/a>. &#8220;If the battery pack is damaged, certain safety protocols are often necessary, adding more to the <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/auto-repair\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:11;\">repair<\/a> bill. Plus, there aren&#8217;t as many shops with technicians trained to fix <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/electric\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:12;\">electric vehicles<\/a> versus traditional vehicles.&#8221;<\/p>\n<p>Provider State Farm said an <a href=\"https:\/\/www.statefarm.com\/insurance\/auto\/electric-car-insurance\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:13;\">EV battery repair could cost<\/a> anywhere from $5,000 to $15,000, and would likely require costly, specialized labor.<\/p>\n<p>While <a href=\"https:\/\/www.torquenews.com\/1083\/hdli-study-finds-evs-crash-less-often-conventional-cars\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:14;\">collision and property damage liability claims for EVs<\/a> tend to happen at lower frequencies than with conventional vehicles, according to the Highway Loss Data Institute, the severity of claims tends to be higher. But that&#8217;s been lowering over time.\u00a0<\/p>\n<h2>Other savings are important to remember<\/h2>\n<p>This is where car-buyers have to weigh an EV&#8217;s <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/cars-compare\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:15;\">total cost of ownership<\/a>, according to agency <a class=\"injectedLinkmain\" target=\"_blank\" href=\"https:\/\/www.aaa.com\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:16;\" rel=\"noopener\">AAA<\/a>. Where EV insurance and upfront costs look more than with a gas-powered car, drivers could see substantial <a href=\"https:\/\/affiliate.insider.com?postID=6401045da5f1ba750979da81&amp;site=bi&amp;u=https%3A%2F%2Fwww.aaa.com%2Fautorepair%2Farticles%2Ftrue-cost-of-ev&amp;utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:17;\">fuel and maintenance costs-savings from going electric<\/a>. They also come with lower repair and tire costs.\u00a0<\/p>\n<p>One <a href=\"https:\/\/newsroom.aaa.com\/wp-content\/uploads\/2022\/08\/2022-YourDrivingCosts-FactSheet-7-1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:18;\">AAA estimate suggests owning an EV costs<\/a> 60 cents per mile, compared with 75 cents per mile for a medium SUV and 69 cents for a medium sedan.<\/p>\n<p>Understanding auto pricing overall is unsurprisingly top of mind for buyers, Jessica Stafford, SVP of consumer solutions at Cox Automotive, said.<\/p>\n<p>&#8220;That&#8217;s the biggest question that consumers have holistically,&#8221; Stafford said, &#8220;and those consumers are asking that about EVs, too: Help me understand the total cost of ownership, help me understand what this looks like, and what happens when I need repairs.&#8221;<\/p>\n<div class=\"read-original\">\n  Read the original article on<br \/>\n <a href=\"https:\/\/www.businessinsider.com\/electric-car-insurance-cost-more-expensive-total-cost-ownership-2023-3\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:19;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A new EV sold for $58,725 on average in January. That plays a role in the fact that insuring an EV might cost drivers more. Ram Insuring an EV might differ from insuring a gas-powered vehicle. EVs have high-value batteries and costly electronics. Car-buyers should understand the nuances of EV insurance and why it might [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-44140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/44140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44140"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/44140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44140"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}