Is EV Insurance Too High? Unpacking the Costs and Benefits

The Expert Podcast

Key Points:
When purchasing an electric vehicle (EV), consider not only the price, usage, and maintenance but also the insurance.

• Why Insurance Might Be Higher for EVs:
  • Collision Coverage: Standard auto insurance generally covers collision damage, liability, theft, and physical damage (like flooding).
  • Engine vs. Battery:
    • For gasoline vehicles, the engine is a valuable part but is usually protected during a collision.
    • For EVs, the battery is the most valuable component and is integrated into the floor of the car, making it more susceptible to damage.
  • Repair Costs:
    • The cost of replacing a damaged EV battery can be significantly higher compared to a gasoline engine, impacting insurance premiums.
    • Battery damage can occur from side impacts, curbs, or floods, unlike gasoline engines which are more protected.
  • Insurance Risks:
    • EVs present a higher risk of expensive claims due to the cost of battery repairs and potential damage to electric motors located at each wheel.
    • Insurance companies factor these risks into their pricing, leading to higher insurance costs for EVs.
• Considerations:
  • Before purchasing an EV, obtain and review insurance quotes to ensure the costs align with your budget.
• Additional Information:
  • Live Consultations: For personalized advice, visit actualhuman.com to book a one-on-one consultation with experts in various fields, including insurance, real estate, and more.
  • Host Background: The host is a certified real estate title examiner, civil court mediator, and experienced entrepreneur who has developed and sold several businesses.
• Call to Action:
  • Check the insurance rates for electric vehicles before making a purchase decision to avoid unexpected costs.

Thank you for tuning in to this episode of Actual Human Advisory on Describe TV.