If you live in the state of California, you have likely seen quite a few electric cars and small SUVs making their way onto the roads within the past few years. With gas prices on the rise here in California, many people have been looking for vehicles that operate without the need of gas. Are you currently considering making an investment in an electric vehicle in order to save money on gasoline? Well, believe it or not, you could be paying a little more for auto insurance if you own an EV and here is why.
Vehicle Value
We all know that the more a car, truck or SUV is worth, the higher the auto insurance will be. Electric vehicles tend to cost more than traditional gasoline vehicles, which is one of the reasons why auto insurance will be slightly more expensive.
Repair Costs
Since electric vehicles are generally more valuable than ones that operate on gas, any repair is typically also more expensive. As a matter of fact, the battery systems alone in an electric vehicle can cost thousands of dollars to repair. Not to mention, if a repair is needed, you will likely have to seek the advice of a mechanic that has been trained to work on electric vehicles and this could increase the cost as well.
While auto insurance might be a little more expensive for an EV, it’s still not at all a bad idea to make the switch. In fact, the federal government actually offers a substantial tax credit for those who purchase an electric vehicle. This credit could definitely offset the higher price tag and more expensive auto insurance. When shopping around for auto insurance for your electric vehicle, it’s recommended you ask if the insurance company offers any discount for those who own an EV. Chances are you might even get a discount that will make the cost of owning an electric vehicle more affordable.