Why Electric Vehicle Insurance Might Be Higher

When considering an electric vehicle (EV), one often overlooked cost is auto insurance. While you might already be thinking about the purchase price, maintenance, and usage, insurance premiums can be significantly higher for EVs. Why? It all comes down to the battery. In a traditional vehicle, the engine and drivetrain are the most expensive parts, but in an EV, the battery makes up a large portion of the vehicle's value—sometimes over 50%. Unlike a gasoline vehicle, where the engine is well-protected, the battery in an EV is part of the floor and can easily be damaged in a collision, side impact, or even by driving over a curb.

Because of the potential for expensive repairs, including battery replacement and damage to electric motors, insurers are raising premiums to cover the higher risk. If you're considering buying an EV, don't forget to check your insurance costs first to ensure that the numbers work for your budget.

For more information and expert advice, schedule a one-on-one consultation with a licensed insurance broker, private investigator, or other experts at ActualHuman.com.