In most states, car insurance is more than a passing luxury; it’s a necessity. In fact, most car dealerships will not allow you to drive away with a new vehicle after purchase unless they have verified that you have current auto insurance coverage. Yet if there is one thing you should always check before making a vehicle purchase, it’s the price of the insurance.
Often it will make or break a purchase decision as some cars may be affordable when it comes to monthly payments; their insurance payments skyrocket the moment the vehicle is driven off the lot. For example, while electric cars are one of the best when it comes to tax breaks, electric car insurance is among the highest-rated in the industry.
What Is Auto Insurance
Even though most vehicles are covered by insurance if you ask anyone what their insurance covers, chances are they will look at you with a confused expression. To put it simply, insurance, in general, protects you from the risks of everyday life. Auto insurance protects you from the daily risks associated with driving.
The average American does not have the funds to repair a vehicle should it acquire damages during an accident, nor do they have the funds to help pay for the costs should they cause an accident that results in bodily injury to another.
There are various parts of insurance policies you should familiarize yourself with, including but not limited to liability coverage, collision coverage, comprehensive coverage, and uninsured motorists’ vehicle coverage.
Possibly the most crucial part of the insurance policy is what covers you in the event that you cause damages to another party. Typically, these limits are broken down into three categories per person, per incident and one for property damage. This coverage is required in most states, yet the levels of coverage vary.
This coverage has to do with the damages your vehicle sustains during an accident. With collision coverage, you have the option of adding a deductible to your policy. Simply stating you would pay out the deductible and then the insurance policy would pay out the rest. Providing, of course, that the vehicle is not rendered a total loss.
The easiest way to understand comprehensive coverage is to think of it as situations that are out of your control. Instances such as fire, theft, and vandalism are all examples of conditions that would fall under this coverage.
Just as you would with your collision coverage, there is an option for a deductible on comprehensive coverage. By placing deductibles on your policy, it can help to lower your monthly premium.
Electric Car Insurance
When it comes to your auto insurance rates, there are a few things that are taken into consideration. Most insurance companies look at data collected over decades. Everything from make and models of particular vehicles, age, etc. These help them determine how to rate the varying demographics.
The difference between electric cars and gas-powered vehicles when it comes to insurance ratings is that the electric vehicles have not been around long enough to collect as much data, so there will be some assumptions made when it comes to rating.
Electric Car Driveability
In theory, electric cars can go farther for less than their gas-powered counterparts. While there are gas stations on every corner in most cities, the same cannot be said for electric vehicles. There are only so many charging stations in each town. While they were once offered free unlimited charges, many companies, including electric car giant Tesla have phased out unlimited free charges.
Most new cars come packed with safety features. This includes electric vehicles. While cars that are powered by gas tend to go faster, that is not the case for electric vehicles. The sheer fact that they do not carry gasoline is also an added bonus as it removes a dangerous component from any auto accident.
Cost of Repair
When looking at electric car insurance, the most significant factor is how much will it cost your insurance company in the vent of a total loss. The bigger the risk for the company, then the higher the insurance rates for a particular vehicle.
With the average cost of electric cars decreasing, there is hope for some relief when it comes to insurance rates. Studies show a 13.4% decline in MSRP for electric cars over the past year alone, bringing the price of electric cars from $64,300 to $55,600.
It makes sense that if a car is expensive to manufacture that the cost of insurance will be slightly more. With newer vehicles, there are often many safety features that can help bring down the price of your car; however, it may not always be enough.
The Bottom Line
There is hope when it comes to electric car insurance. There may be more data for the gas guzzlers, but electric cars are here to stay. As the years roll on, the cost to manufacture will (hopefully) go down, thus making the replacement cost for insurance companies more affordable.
The best way to save money when it comes to electric car insurance is to contact your insurance agent and set a time to meet with them to go over all of your options. There may be discounts that you are unaware of or adjustments you can make to your policy that will help reduce your overall cost.
For more information on how you can save money on your electric car insurance for the Laconia, NH area check out our website.