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Electric Car Insurance: Why is it More Expensive?

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Whatever you choose to blame it on, there can be no escape from the fact that fuel costs may be rising at an alarming rate. In addition, air pollution levels in many large cities have gotten higher than ever. Owning an electric vehicle (EV) is a good choice.

These zero-emission vehicles can be battery-powered and easier to maintain. However, electric cars are more expensive than gasoline-powered vehicles and repairing or replacing faulty parts can be costly. As a result, when purchasing electric car insurance, you may need to pay some extra money yearly for car insurance renewal.

Why are electric vehicles expensive to insure?

1.Electric vehicles can be expensive: Due to expensive rates, their Insured Declared Value (IDV) can be significant. The higher the IDV, the higher the prices for car insurance. Although electric cars can be more expensive initially, they can be cost-effective in the long-term because they save money on fuel.*

2.Higher repair costs: The cost of an EV’s lithium-ion battery, for example, can be more than half of the vehicle’s overall price. As a result, fixing or replacing the battery can be expensive. Similarly, repairing or replacing any other component of an electric car can be prohibitively expensive.

3.A smaller number of qualified technicians: Some sophisticated electric vehicle parts require special care and services. Available mechanics charge extra for repairing and replacing EV parts.

How can you get affordable electric vehicle insurance?

You can do the following to locate a low-cost electric car insurance policy for your EV:

  • Purchase insurance online:

This can be one of the significant ways to get reasonable and affordable electric car insurance costs. You can compare the inclusions, exclusions, add-ons, services, and more of the different car insurance policies online, along with a car insurance calculator, to choose a good and cost-effective alternative.

  • Install security equipment:

Another cost-effective way to reduce car insurance prices can be installing security devices in your EV, such as an anti-theft device and safety locks. These gadgets improve EV safety and reduce the likelihood of theft. Car insurance companies also lower renewal prices for automobiles equipped with anti-theft systems.

  • Opt for a voluntary deductible:

A voluntary deductible is the sum a policyholder must pay out of pocket during claims. When you choose a voluntary deductible, your insurance for EV cars can be reduced by a percentage. If you drive responsibly and have a new car, your odds of filing a claim can be slim. Thus, you can opt for car insurance with a voluntary deductible in such instances.

  • Take advantage of the no-claim incentive:

Car insurance firms provide a no-claim benefit to policyholders for each claim-free year. This bonus can take the shape of lower premiums, or a higher sum assured. As a result, your chances of filing a claim can slim down if you drive safely and maintain your vehicle.

Conclusion:

Electric vehicles are expected to become more affordable in the coming years as technology advances. However, these cars can currently be expensive, with higher maintenance costs. As a result, car owners must pay thousands of dollars more for car insurance renewal premiums. With car manufacturers working hard to produce affordable EVs, these vehicles may become more affordable.

 Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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