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Electric vehicles (EVs) are becoming increasingly popular, but they can be more expensive to insure than traditional gas-powered vehicles. There are a few reasons for this:
- Higher price tag: EVs tend to be more expensive than gas-powered cars, which means that they are worth more and therefore pose a greater financial risk to insurers.
- More complex technology: EVs have more complex technology than gas-powered cars, which can make them more expensive to repair in the event of an accident.
- Less common parts: EVs are still relatively new, so there are fewer parts available and they can be more expensive to replace.
- Less experienced repair technicians: There are also fewer repair technicians who are experienced in working on EVs, which can drive up the cost of repairs.
According to a study by the Insurance Institute for Highway Safety (IIHS), the average annual insurance premium for an EV is $1,583, which is about 20% higher than the average premium for a gas-powered car. The study also found that the insurance premiums for EVs vary depending on the make and model of the vehicle. For example, the average premium for a Tesla Model 3 is $1,853, while the average premium for a Chevrolet Bolt EV is $1,408.
There are a few things that drivers can do to lower the cost of insuring their EV, such as:
- Buying a used EV: Used EVs are typically less expensive than new EVs, which can help to lower the insurance premium.
- Getting a high deductible: A higher deductible will lower the monthly premium, but it will also mean that the driver will have to pay more out of pocket in the event of a claim.
- Increasing the liability coverage: Increasing the liability coverage will help to protect the driver in the event of an accident, but it will also increase the monthly premium.
- Shopping around for quotes: It is important to shop around for quotes from different insurance companies to find the best deal.
Despite the higher insurance premiums, EVs can still be a good financial investment. They are more efficient than gas-powered cars, which means that they can save drivers money on fuel costs. They also have lower maintenance costs, which can further offset the higher insurance premiums.
If you are considering buying an EV, it is important to factor in the cost of insurance. However, even with the higher insurance premiums, EVs can still be a good value for money.
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