Electric vehicles (EVs) are the talk of the town in the automotive industry in 2019. Although they save you money on fuel and are eco-friendly, the reality is that EVs cost more to insure than their gas-powered siblings.
Why Electric Vehicles Cost More to Insure
According to NerdWallet, car insurance quotes for electric vehicles in California were 21% higher on average compared to their gas-powered versions in 2015, when EVs were beginning to boom in popularity.
Higher values and repair costs are two main culprits behind the higher insurance premiums. Base prices for the EVs NerdWallet studied (Chevrolet Spark, Volkswagen Golf, and Fiat 500) averaged 70% more than their gas-powered versions.
In the event an EV is stolen or totaled, the insurance payout is higher. In addition, repairing EVs can cost more due to the need for specially-trained mechanics to repair or replace their battery systems.
That was in 2015, but there have been some changes in EV premiums over the past couple of years, such as the inclusion of an EV federal tax credit that makes these cars more affordable. Still, insurance coverage can take a hefty bite out of your budget.
ValuePenguin took a look at New York insurance rates for EVs in 2017 and found that premiums remain high compared to their gas-powered counterparts. On average, there was a 23% difference in insurance costs.
To put that in real-time amounts, if your premium for a gas vehicle was $1,200 and you opted for the electric version, your premium could be close to $1,500. A few hundred dollars doesn’t sound like much, but you may not want that electric car with its higher premium if you’re on a tight budget.
10 Cheapest Electric Vehicles to Insure in 2019
Now that you know why EVs are more expensive to insure, how do you pick one that won’t break the bank? According to Mercury Insurance, a multiple-line insurance organization, here are the 10 cheapest electric vehicles to insure in 2019:
- Fiat 500e
- Kia Soul EV
- Nissan Leaf
- Volkswagen e-Golf
- Smart EQ fortwo
- Hyundai Kona Electric
- Ford Focus Electric
- Hyundai Ioniq Electric
- BMW i3
- Chevrolet Bolt EV
Keep in mind that not every EV listed here is available in the state you live in. For example, the Hyundai Kona Electric is currently only available for purchase in California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont as of 2019 – all Zero Emission Vehicle-focused states.
The Bottom Line
Electric cars are great for those looking for a more eco-friendly vehicle. Unfortunately, insurance is more expensive, and opting for a gas version of the same car may be the more cost-effective route to take. If you’re looking to shop for auto insurance, we can assist you here.
No matter which type of vehicle you’re looking into, if you need help finding a dealership to work with because your credit isn’t great, we want to point you int he right direction.
At CarsDirect, we help credit-challenged car buyers find financing by matching them to local special finance dealers. Getting started is a breeze! Just fill out our free and easy car loan request form today.
