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.
Not many small business owners are aware of their risks when it comes to general liability coverage. Once they become aware of the most common and costliest claims, small business owners can then focus their time, energy and resources on the aspects of their company that can save them the most money in the long run. This is why the Hartford, a Connecticut based insurance company, recently performed a national study in order to determine the most common and the most costly general liability claims filed by small businesses. While conducting their research, the team at the Hartford analyzed small business claims from over a million property and liability policies spanning a five year period. The majority of small business owners who have reviewed the statistics provided by the Hartford are actually a little surprised by the findings of the study. This is because you’ll notice that their research has found that the most common claim is actually the least expensive. Burglary and theft is by far the most common small business claim making up nearly 20% of all filed claims, but it typically only costs the company around $8,000. On the other hand, reputational harm is less likely to occur but carries the largest price in terms of numbers.
Businesses that rely on the transportation of goods, customers or equipment to operate definitely need to insure all company vehicles. Whether you own or rent the vehicles your company uses, you need to have them covered with adequate commercial auto insurance. Some business owners are shocked to find out just how much their premiums are when it comes to insuring vehicles for business use. This may be because they’re not fully aware of what determines the rate they pay. If you’re a business owner, check out these 7 things that can affect your business’ commercial auto insurance premium.