Cars that run on electricity or a mix of gas and electricity (called hybrids) cost more to insure than regular cars that just run on gas. Insurance for electric cars costs more than for regular cars. On average, you’ll pay $44 more per month compared to insuring a regular car that runs on gas.
Electric cars are gaining more popularity everyday due to their environmental benefits and potential cost savings. As an insurance agent, I see more and more clients asking about insuring their electric car. Traditional car, electric car, and telematics insurance are all ways to protect your electric car.
In this article, we will discuss the types of insurance to consider, factors to consider when purchasing insurance, the top options, and provide tips for purchasing insurance. Let’s get started!
Table of contents
Electric Car Insurance Rates
Insurance is meant to protect your car and its value. So, if your car is expensive (like many hybrid or electric vehicles), your insurance will cost more.
The cost of insurance for an electric car varies and can depend on different factors such as your location, driving history, and the type of coverage you want. On average, the cost of electric car insurance is around $206 per month, or $2,468 per year.
Policygenius found out how much it would cost to insure an electric car by looking at the rates given by Quadrant Information Services. By using this data, we were able to provide the table below by excluding any company that isn’t a large, reputable insurance carrier.
| Company | Monthly Insurance Cost |
|---|---|
| USAA | $114 |
| Erie | $122 |
| Auto-Owners Insurance | $125 |
| State Farm | $125 |
| Travelers | $132 |
| GEICO | $148 |
| Nationwide | $159 |
| CSAA | $248 |
| Allstate | $264 |
| Auto Club Group | $292 |
| The Hartford | $296 |
These figures were compiled using the average cost of a lot of different electric vehicles using the below coverages:
| Coverage Type | Limits |
|---|---|
| Bodily Injury Liability | 50/100 |
| Property Damage Liability | $50,000 |
| Uninsured/Underinsured Motorist | 50/100 |
| Comprehensive | $500 deductible |
| Collision | $500 deductible |
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Tesla Model S Insurance Rates
The Tesla Model S, a highly-priced electric vehicle starting at $75,000. Despite its popularity, insuring a Tesla Model S comes with a high cost, with an average yearly insurance premium of $2,500 and USAA offers the most affordable rates for insuring a Tesla Model S.
The below table is based upon the Zebra’s auto insurance rate research which is the result of a thorough examination of auto insurance pricing information. This analysis encompasses over 83 million insurance rates from across the United States, ensuring the most accurate and up-to-date information is available for consumers.
| Company | Premium | A.M. Best Financial Strength Rating | Moody’s Financial Strength Rating | Standard & Poor’s Financial Strength Rating |
|---|---|---|---|---|
| Allstate | $4,759 | A+ | A1 | AA- |
| GEICO | $3,291 | A++ | Aa3 | AA |
| Farmers | $4,923 | A | A2 | A- |
| Liberty Mutual | $3,100 | A | A2 | A |
| Nationwide | $2,145 | A+ | A1 | AA- |
| Progressive | $2,299 | A+ | A1 | AA- |
| State Farm | $2,397 | A++ | Aa1 | AA+ |
| USAA | $1,766 | A++ | Aa1 | AAA |
Please note that the ratings may change over time, and it’s important to research the most up-to-date information when evaluating a company’s financial strength.
USAA Is The Best Company To Insure Electric Vehicles
As a licensed insurance agent, I have extensive experience in the industry and can say that USAA is the best company to insure electric vehicles currently. Of course things change frequently but as of now, USAA does a great job!
USAA is a highly rated insurer with a strong financial foundation, earning a rating of A++ from A.M. Best, Aa1 from Moody’s, and AAA from Standard & Poor’s. This gives consumers peace of mind, knowing that USAA has the resources and stability to pay out insurance claims.
They also offer comprehensive coverage for electric vehicles, including liability, collision, and comprehensive coverage. On top of that, they provide discounts for electric vehicles and eco-friendly driving practices, making it more affordable for consumers to protect their investment.
USAA’s customer service is exceptional. They are dedicated to providing excellent service to their members and making the insurance process as easy and stress-free as possible. They also have a user-friendly website and mobile app, allowing customers to manage their policies and file claims quickly and efficiently.
| Contact Method | Information |
|---|---|
| Phone | 1-800-531-USAA (8722) |
| Website | www.usaa.com |
| Address | 9800 Fredericksburg Road, San Antonio, TX 78288 |
Overall, USAA’s combination of financial stability, comprehensive coverage, and exceptional customer service make them the best choice for insuring electric vehicles. As a licensed insurance agent, I highly recommend USAA to anyone looking to protect their electric vehicle investment.
The easiest way to get a quote from USAA is to visit their website at www.usaa.com and use their online quote tool. The tool will guide you through a series of questions about your coverage needs and driving history, and will provide you with a quote based on the information you provide.
You can also call USAA at 1-800-531-USAA (8722) and speak with a representative who will assist you in getting a quote. The representative can answer any questions you have and provide more information on their products and services.
In either case, having information such as your driving history, vehicle make and model, and coverage needs ready ahead of time can help make the quote process quick and easy.
Other Factors To Consider When Choosing A Policy
When choosing a car insurance policy, it’s important to consider several factors beyond just the price. Some important things to think about include the types of coverage offered, the insurance company’s reputation and financial stability, and the discounts and perks they offer.
In terms of coverage, you’ll want to make sure the policy you choose has all the protection you need in case of an accident or other unexpected event. This might include liability coverage, which helps pay for damages you cause to someone else’s vehicle or property, as well as collision coverage and comprehensive coverage for your own car.
It’s also important to consider the insurance company you’re working with. You’ll want to make sure they have a good reputation and are financially stable, so they can pay out insurance claims if you need them to. You can check the financial strength ratings of insurance companies through organizations like A.M. Best or Standard & Poor’s.
Don’t forget to look at the discounts and perks that different insurance companies offer. Some may offer discounts for good drivers, multiple cars, or eco-friendly driving practices. They may also offer convenient features like online policy management and mobile app access. By considering all these factors, you can make an informed decision and choose a policy that gives you the protection you need at a price you can afford.
To make sure you are purchasing the best policy, I recommend you consider these factors:
- Coverage Limits And Exclusions: When comparing insurance policies, it’s important to carefully review the coverage limits and exclusions to make sure the policy meets your needs. Pay particular attention to the maximum amount that the policy will pay out in the event of a claim, as well as any exclusions that may limit the coverage. For example, some policies may exclude coverage for damage to the battery or charging system of your electric car.
- Cost And Affordability: It’s also important to consider the cost and affordability of the insurance policy. Look for a policy that provides good value for money and fits within your budget. Keep in mind that cheaper policies may have lower coverage limits or more exclusions, so it’s important to balance cost with the level of protection you need.
- Reputation And Financial Stability Of The Insurer: It’s important to consider the reputation and financial stability of the insurance company. Look for a company with a good track record and a solid financial foundation, as this can give you confidence that the company will be able to pay out claims in the event that you need to make one. You can check the ratings and reviews of the company online, or ask for recommendations from friends, family, or a trusted insurance broker.
- Policy Discounts And Benefits For Electric Cars: Many insurance companies offer discounts and benefits for electric car owners, such as discounts for purchasing multiple policies or for purchasing a policy within a certain time frame. It’s a good idea to ask about these discounts and benefits when comparing quotes, as they can help lower your premiums.
Conclusion
Both Policy Genius and the Zebra, both hugely reputable insurance websites, state that USAA is the best car insurance company for electric vehicles.
With that said, there are a variety of insurance options available, so make sure you understand each of them to know which type of insurance is best for you. Be sure to follow the tips outlined in the article and carefully research your options so you can find the best insurance possible for your needs and budget.
