Top 6 Best Insurance for Electric Cars
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Times are changing, and the rules of the road are changing with them. Between the steady increase in environmental protections and California’s plan to phase out gas-powered cars entirely by 2035,[^1] it’s no surprise that electric car sales have skyrocketed in recent years.
While millions of Americans are already transitioning to eco-friendly vehicles, many drivers are left wondering, “How will my insurance change?” Even if you need a new policy, there are always options to reduce costs and save money. If you’re planning on switching lanes and going green, read on for the differences in insurance shopping and the best insurance for electric cars.
How Does Insuring an Electric Vehicle Differ From a Gas-Powered Car?
Before you can compare EV insurance plans, it’s important to understand why insuring an electric vehicle is different. After all, accidents happen to everyone, right? So why should it matter how your car gets from point A to point B?
There are three main differences you’ll find when insuring an electric car:
Price – Auto insurance often costs more for electric vehicles. This price change has nothing to do with safety but because electric cars are more expensive to repair, and parts may be harder to come by. Generally, when your car is worth more, your insurance premiums are higher, too—electric vehicles tend to cost more than their gas-powered counterparts, which means drivers end up paying a bit more each month.
Discounts – In direct opposition to this first point, auto insurance for electric cars can also be less expensive. Some providers offer discounts to electric vehicle owners as a way to encourage the movement toward greener energy. Depending on your provider, these discounts could offset the pricier premiums and result in a monthly bill that’s more or less the same as before.
Batteries – Perhaps the biggest difference between these two types of cars is the cost of a battery replacement. Since electric vehicles run solely on battery power, it can cost a pretty penny to replace a damaged electric car battery following an accident. Fortunately, electric car battery prices are slowly decreasing as electric cars become more popular. Soon, the cost of replacing a car’s battery may not affect an EV driver’s insurance at all. For now, however, a battery replacement is something insurers take into account.[^2] Often, you’ll find car insurance based on mileage, but there are several other factors that enter the mix.
With that out of the way, let’s talk about what you really care about—securing the most affordable auto insurance rates for your electric vehicle.
Travelers is a popular insurance company that offers a broad spectrum of automotive coverage. Customers can choose any of the following insurance plans for their vehicle:
Personal Injury Protection (PIP)
In addition to these protective plans, electric vehicle owners have multiple opportunities to save money with Travelers auto insurance. This provider has three types of discounts that may apply to your electric car:[^3]
Hybrid/Electric Vehicle Discount – Travelers offers a discount for motorists who drive an electric or hybrid vehicle. Your specific discount will depend on the make and model of your car, as well as your personal driving history.
New Car Discount – Since electric vehicles are still fairly new, there aren’t a ton of options to buy used cars or older models. Because newer cars tend to be safer, Travelers gives customers up to 10% off their insurance policy for vehicles less than three years old.
Continuous Insurance Discount – Electric vehicle parts are expensive to replace. This means that most drivers will cover their electric cars to the fullest extent possible, in order to avoid a high collision deductible. With Travelers insurance, customers can get up to 15% off for having no gaps in their coverage. This means that paying for full coverage will save you money after an accident and on your insurance premiums.
As an insurance provider, Allstate places a high value on safe and new cars—two things that electric vehicle owners can cash in on. Customers can get basic or extensive coverage through Allstate’s wide range of plans, including:
Collision, Comprehensive, and Liability insurance
Medical Payments and PIP
Sound System Insurance
Personal Umbrella Coverage
These unique policies may be ideal for EV owners, particularly those with advanced features and expensive dashboard systems. If you’re looking for a provider that can cover all the aspects of your brand new car, Allstate is a great option.
While the provider does not offer lower premiums for electric vehicles, customers may be able to save money through other offers:[^4]
New Car Discount – Purchasing a new electric vehicle can save you money on your Allstate insurance policy. This discount will vary by state, and your vehicle must be the most recent or second most recent model to qualify.
Safe Driving Club – Electric vehicles tend to have a wider range of safety features, including anti-lock brakes, collision warnings, and blind-spot monitors. Utilizing these safety features can help Allstate customers earn a hefty safe-driving bonus for every six months without an accident.
If your vehicle of choice is a Tesla model, you may be able to insure it directly through them.
Tesla has recently launched its own auto insurance programs in select areas of the United States. These policies are underwritten by the company AXA, a French multinational insurance provider. While this up-and-coming option may raise a few additional questions, there are plenty of reasons to consider an in-house insurance plan:
Charger protection – Home chargers usually cost $600 or more. If you plan to charge your Tesla from the comfort of home, you may want to opt for the company’s charger protection plan. This will cover up to $771 worth of damage to your charger, and cover out-of-pocket costs for a replacement.
Add-ons – Tesla customers can personalize their plan with low-cost add-ons, such as injury protection, legal expense coverage, and rental car reimbursement.
Unique coverage – Tesla’s insurance comes with unique coverage, including windscreen, theft, and fire protection at no extra cost.[^5] If you’re wondering, “does car insurance cover natural disasters?” you can rest assured that Tesla’s car insurance policy does. Unfortunately, Tesla’s insurance options are still relatively limited. California is the only state that currently offers this coverage, with Illinois, Texas, and Washington joining the list in the next year.[^6]
Farmers handles a variety of different insurance plans, including home, life, and auto coverage. With Farmers auto insurance, drivers can save money on their monthly premiums thanks to the high-tech amenities that come with many electric vehicles.
Here’s a rundown of the potential discounts you might enjoy:[^7]
Alternative Fuel – Some customers can save up to 5% on their monthly plan through Farmers alternative fuel discount. Any hybrid or fully electric vehicle is eligible, but as of now, the discount is only available in the state of California.
Homing Device – Many electric cars come with a GPS tracking feature. Drivers with this anti-theft measure can earn a discount on their monthly premium if the system is approved by a Farmers agent.
Daytime Running Lights – Newer electric vehicles are often equipped with daytime running lights (LED headlights that turn on automatically no matter what time of day it is). Farmers offers a premium discount in select states for cars with this feature.
#5 Liberty Mutual
Liberty Mutual is a top provider of property, life, business, and auto insurance. The company is known for handing out safe-driving discounts, but many people don’t realize that electric vehicles and their safety features can save you money with Liberty Mutual, as well.
Below are some of the discounts drivers can get for their electric vehicles:[^8]
Alternative Energy Discount – As a friend of the environmental movement, your hybrid or electric car will be eligible for varying monthly premium discounts, depending on the state you live in.
Advanced Safety Features Discount – If your electric vehicle is equipped with modern safety features, you may be able to receive a monthly discount because of your reduced risk. The qualifying features include anti-lock brakes, electronic stability control, and adaptive headlights.
Anti-Theft Device Discount – Cars equipped with anti-theft technology may be eligible for discounts through Liberty Mutual. These features are common among new electric vehicles and include GPS trackers, advanced alarm systems, and mobile safety apps.
USAA is an insurance company designed to help military families save money. To reduce the financial limitations associated with electric car ownership, USAA customers may be able to stack savings and ultimately find a plan that’s highly affordable.
First, USAA customers can benefit from the following discounts that are related to their membership, not their electric vehicle:[^9]
Family Discount – Sometimes, it pays to keep it in the family. If you inherit and continue using your parents’ USAA account, you can save up to 10% yourself.
Length of Membership Savings – The longer you stay with USAA, the less you’ll spend. Customers can get yearly discounts just for keeping their auto insurance plan.
Military Installation Discount – Military members can save up to 15% when they insure a vehicle on an active U.S. base.
On top of these standard USAA discounts, electric vehicle owners may be eligible for other savings. While USAA does not offer a specific discount for eco-friendly vehicles, they do have the following programs that often benefit electric vehicle drivers:[^10]
New Vehicle Discount – Because of the added bells, whistles, and safety features, vehicles less than three years old are eligible for discounted rates. Again, many drivers purchase electric vehicles new, meaning they likely fall under this category.
Stored Vehicle Discount – Most electric car owners charge their vehicles overnight. This usually means they’re parking in an attached garage, building-wide parking garage, or a private storage area. USAA offers significant discounts on premiums for owners who have a safe place to keep their cars at night because it reduces the risk of theft.
Find The Right Plan Faster with Online Auto Insurance
Comparing auto insurance quotes can be a pain, especially with a brand new electric car. You know there are savings to be had, but you can’t always find the best ones for your unique situation.
That’s why Online Auto Insurance was created—to make sure you find those deals.
With OAI, drivers can compare dozens of quotes in an instant. Through our simple search engine, you can find the right collision, liability, and PIP coverage that fits your budget. Stop comparing quotes when you should be out enjoying your new electric vehicle. Find your perfect plan today with Online Auto Insurance!
Office of Governor Gavin Newsom. Governor Newsom Announces California Will Phase Out Gasoline-Powered Cars & Drastically Reduce Demand for Fossil Fuel in California’s Fight Against Climate Change.\ https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
Forbes. I’m Buying An Electric Vehicle—How Does That Affect My Auto Insurance? \ https://www.forbes.com/advisor/car-insurance/electric-vehicle/
Travelers.com. Car Insurance Discounts. \ https://www.travelers.com/car-insurance/discounts
Allstate. Car Insurance Discounts. \ https://www.allstate.com/auto-insurance/car-insurance-discounts.aspx
Tesla. InsureMyTesla. https://www.tesla.com/en_IE/support/insuremytesla
Teslarati. Tesla Insurance Poised for Imminent Launch in Several New U.S. States.\ https://www.teslarati.com/tesla-insurance-texas-washington-illinois-expansion/
Farmers. Discounts\ https://www.farmers.com/discounts/
Liberty Mutual. Auto Insurance Discounts. https://www.libertymutual.com/auto/car-insurance-discounts
USAA. Auto Insurance Quotes. \ https://www.usaa.com/inet/wc/auto-insurance
USAA. Auto Insurance Discounts. \ https://www.usaa.com/inet/wc/auto-insurance-discounts
[^1]: Office of Governor Gavin Newsom. Governor Newsom Announces California Will Phase Out Gasoline-Powered Cars & Drastically Reduce Demand for Fossil Fuel in California’s Fight Against Climate Change. https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
[^2]:\ Forbes. I’m Buying An Electric Vehicle—How Does That Affect My Auto Insurance?\ https://www.forbes.com/advisor/car-insurance/electric-vehicle/
[^3]: Travelers. Car Insurance Discounts. \ https://www.travelers.com/car-insurance/discounts
[^4]: Allstate. Car Insurance Discounts. \ https://www.allstate.com/auto-insurance/car-insurance-discounts.aspx
[^5]:\ Tesla. InsureMyTesla. https://www.tesla.com/en_IE/support/insuremytesla
[^6]: Teslarati. Tesla Insurance Poised for Imminent Launch in Several New U.S. States. \ https://www.teslarati.com/tesla-insurance-texas-washington-illinois-expansion/
[^7]: Farmers. Discounts. \ https://www.farmers.com/discounts/
[^8]: Liberty Mutual. Auto Insurance Discounts. https://www.libertymutual.com/auto/car-insurance-discounts
[^9]: USAA. Auto Insurance Quotes. \ https://www.usaa.com/inet/wc/auto-insurance
[^10]: USAA. Auto Insurance Discounts. \ https://www.usaa.com/inet/wc/auto-insurance-discounts