Is There Different Auto Insurance For Electric Cars?

If you’re considering buying an electric car, or possibly a hybrid, and you may be wondering if there is different auto insurance for electric cars. The good news is that there really isn’t.

Note: This was the blog post I was going to write before I saw that cool “Insane Mode” in the Tesla Model S and got distracted. If you haven’t seen the video and read that post yet, check it out.

If you’ve purchased a luxury model, like a Tesla Model S or an ActiveHybrid from BMW, should you consider purchasing other coverage? Is there a specialty insurance company for these types of cars?

The answer is actually, no … that’s the good news. For the most part, insurance companies are indifferent to the fuel that propels the vehicle. They are more concerned with the anticipated claims costs, and the likelihood that a vehicle would be involved in an accident.

What you need to consider, especially if you’re going to purchase a luxury model, and this is true for any new model released regardless of the fuel type, is the cost of repair or replacement. The vehicles that cost the most to repair or replace, or those that have a history of frequent accidents, are the vehicles that can cause your premiums to increase.

However, many companies have green initiatives, and consistent with these initiatives they have created incentives or discounts to encourage consumers to purchase these types of vehicles. Additionally, there is some experience that suggests these cars are involved in fewer accidents, allowing some companies to offer discounts on electric or hybrid vehicles.

So, if you purchase a new electric or hybrid, regardless of the make or model, your normal auto insurance should be able to provide you a quote, or you can simply add it to an existing auto insurance policy.

This is a good time to review auto insurance coverage

Don’t run away … this won’t hurt – promise 🙂

When you purchase an electric car or a hybrid, your auto insurance is just auto insurance for a regular gasoline or diesel-engine vehicle. Just for review, we go over the options that may be familiar:

Liability Insurance Coverage: There are basically two types of liability insurance coverage, bodily injury, and property damage. Bodily Injury liability insurance coverage helps pay for medical expenses for people who are injured in accidents when they are determined to be at fault or liable. Most states have minimum financial responsibility laws, here in California the minimum financial responsibility limits for liability coverage are $15,000 per person and $30,000 per accident for Bodily Injury, and $5,000 for Property Damage.

Collision Coverage: When you have damage to your car caused by an accident, regardless of fault, this coverage helps to repair your insured car. Collision coverage is an optional coverage, so you aren’t required by law to have this protection, however, if you have a financed or leased vehicle it may be a requirement of your finance agreement to secure this coverage.

Comprehensive Coverage: If your vehicle is damaged by something other than a collision, then Comprehensive Coverage can help you to repair your vehicle. The types of things that Comprehensive Coverage covers are theft, vandalism, falling objects, and some weather-related losses. You should consult your auto insurance policy to confirm what exactly is covered.

Medical Payments Coverage: While this is not the same as Bodily Injury coverage, it does cover medical expenses for you or your passengers if injured in an accident.

Uninsured and Underinsured Motorist Coverage: When you are involved in an accident with a person who is at fault for your accident but doesn’t have insurance or carries insufficient insurance coverage for the damage or injury caused, this coverage provides protection.

Most insurance companies provide several optional coverages like Rental Reimbursement, Loan/Lease Gap, or Roadside Assistance, you should consult an insurance agent to see if these optional protections are right for you.

An electric car can have an impact on your home insurance

I’m sure you weren’t thinking about how purchasing an electric car would impact your home insurance, but it does. When you purchase an electric car you are also purchasing a vehicle charging station. Here in California, there are recent laws that require condo and home insurance to have coverage to protect the charging equipment. If you live outside of California, you will want to consult with your insurance agent about any home insurance considerations regarding the installation of a charging station at your house.

The advice we always give

Whenever you are changing your home or auto insurance coverage, not just when you add that new Tesla Model S, it’s a great time to talk through your coverage with an insurance agent. An insurance agent can help you understand the types of coverage available, and how your insurance coverage provides the protection.