When you buy an electric car, youre showing fuel costs the door. But you might be letting in an unexpected guest: higher auto insurance rates.
NerdWallet researched insurance premiums for gas and electric versions of the same cars and found that the electric cars had higher premiums in all cases. These vehicles higher values and repair costs are to blame.
Insurance cost comparison of electric cars
NerdWallet calculated the average rates for California drivers to insure four models with gas and electric versions: the Chevrolet Spark, Volkswagen Golf, Smart Fortwo and Fiat 500. We didnt include rates for popular electric cars such as the Nissan Leaf and Tesla Model S because they dont have gas-powered siblings.
Car insurance quotes for the electric cars were 21% higher, on average, than quotes for the gas cars. The differences ranged from 16% (for the Volkswagen Golf) to 26% (for the Fiat 500).
| Annual car insurance quotes for gas and electric cars in California | |||
|---|---|---|---|
| 2015 vehicles | Gas | Electric | Difference |
| Chevrolet Spark | $1,669 | $1,982 | 19% |
| Fiat 500 | $1,597 | $2,016 | 26% |
| Smart Fortwo | $1,474 | $1,807 | 23% |
| Volkswagen Golf | $1,741 | $2,014 | 16% |
| Average | $1,620 | $1,955 | 21% |
Methodology: Rates are averages from the nine largest insurers in California. Rates are for 30-year-old drivers with clean records in 10 California ZIP codes. Rates include liability limits of $100,000 in injuries per person and $300,000 per accident, and $50,000 in property damage, plus collision and comprehensive coverage with a $500 deductible, medical payments protection and uninsured motorist coverage. Your own quotes will be different.
One big reason for the extra cost is that the electric cars are worth more. The base prices of the electric vehicles we studied averaged 70% more than those for their gas siblings (excluding the Smart Fortwo, whose electric version is available only for lease). The more a car is worth, the more an insurance company has to pay if its totaled or stolen.
Read next: 23 Ways to Slash Your Car Expenses
And although electric cars require less service than their gas counterparts, it can cost more to repair them after an accident because of their expensive battery systems and the need to use specially trained mechanics.
Some electric cars qualify for a $7,500 federal tax credit, which can ease the pain of your car insurance bill. All four models we researched qualify for the credit. A separate NerdWallet study found that an electric vehicle can cost substantially less than a gas vehicle over a five-year period, taking into account buying and operating costs.
Finding the cheapest insurance for electric cars
No matter what car you drive, comparison shopping is the best way to nail down a good deal on car insurance. For the vehicles and driver profiles we researched, Mercury Insurance offered the cheapest annual premium. USAA offered a lower quote for the electric Smart Fortwo and the second-lowest quote for the other three cars, but the insurer is open only to military members and their families, so we didnt include it.
| Cheapest insurance companies for electric cars in California | |||
|---|---|---|---|
| Cheapest | Second | Third | |
| Chevrolet Spark | Mercury, $1,294 | Allstate, $1,689 | Auto Club, $1,754 |
| Fiat 500 | Mercury, $1,294 | Farmers, $1,670 | Auto Club, $1,904 |
| Smart Fortwo | Mercury, $1,294 | 21st Century, $1,632 | Auto Club, $1,754 |
| Volkswagen Golf | Mercury, $1,256 | Farmers, $1,691 | Allstate, $1,778 |
Methodology: NerdWallet analyzed rates from the nine largest insurers in California. Policy limits are shown in the previous chart. Results exclude USAA, which is open only to military members and their families.
More From NerdWallet:
Annual car insurance quotes for gas and electric cars in California; 2015 vehicles Gas Electric Difference; Chevrolet Spark: $1,669: $1,982: 19%: Fiat 500
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But will car insurance rates for electric cars be more expensive electric vehicles will likely be to determine auto insurance rates for electric cars.
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Summarize. Car insurance quotes for the electric cars were 21% higher, on average, than quotes for the gas cars.No matter what car you drive, comparison shopping is
Why Car Insurance Costs More For Electric Vehicles 2015 ...
Why Car Insurance Costs More For Electric Vehicles. patronday.com. news online. Home; But you might be letting in an unexpected guest: higher auto insurance rates.
Why Car Insurance Costs More for Electric Vehicles ...
When you buy an electric car, youre showing fuel costs the door. Read more about Why Car Insurance Costs More for Electric Vehicles.
Owners of costly electric cars save money on insurance.
Owners of electric cars have to dig deep savings on their insurance bills. Insurance costs vary widely who switch to a more costly electric car face higher
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NerdWallet (blog) Why Car Insurance Costs More for Electric VehiclesNerdWallet Luke's real life auto insurance quote came back at 303 dollars a month.
Could Your Electric Car Insurance Be Higher Than You Expect?
With President Obamas plans to turn the federal tax credits for electric vehicles into purchase grants theres even more reason to consider an electric car.
Does it cost more to insure an electric car?
An electric car will not raise your auto insurance rates. Electric cars can be more expensive compared to conventional internal combustion engine vehicles and
