Car Insurance for Electric and Hybrid Vehicles: What You Need to Know

As electric and hybrid vehicles become more popular, eco-conscious drivers want to understand how insurance works for these cars. Whether you’re driving a fully electric vehicle or a hybrid, you’ll want to make sure you’re getting the proper coverage.

Electric car insurance and hybrid car insurance can differ from insuring traditional gas-powered cars. In this blog, we’ll explain what you need to know about insuring these types of vehicles, from coverage options to discounts and tips for lowering your premiums.

Understanding Electric and Hybrid Vehicles

Electric and hybrid vehicles are gaining popularity because of their environmental benefits and fuel efficiency. But what exactly sets these vehicles apart from traditional, gasoline-powered cars? And what are the differences between electric and hybrid cars?

Electric Vehicles (EVs)

An electric vehicle (EV) runs entirely on electricity. There are no gasoline engines; instead, the car is powered by a battery that must be charged. Fully electric vehicles are often more expensive than traditional cars but have fewer mechanical parts and emit zero emissions.

Hybrid Vehicles

A hybrid vehicle combines a gasoline engine with an electric motor. Some hybrids, or plug-in hybrids, allow you to charge the battery to run on electric power alone for short distances. The cost of insurance for these cars can be similar to that of traditional vehicles in some respects. Still, there are differences in coverage needs due to the unique technology used in hybrids.

Why Insurance Rates Differ for Electric and Hybrid Vehicles

Regarding insurance for hybrid cars and EVs, premiums are sometimes higher than for gas-powered cars. Here’s why:

• Initial cost: Electric and hybrid vehicles have a higher upfront cost than most gas-powered cars. This affects the insurance rate because the vehicle's value is a key factor in determining premiums.
• Repair costs: Repairs for electric and hybrid vehicles can be pricier than for traditional cars. For example, the battery in an electric car is a major part of its value, and if it gets damaged, can be costly to replace.

Safety Ratings and Features

Fortunately, the advanced safety features in electric and hybrid vehicles can work in your favor. Cars with higher safety ratings often benefit from lower insurance premiums because they’re less likely to be involved in serious accidents. Be sure to choose a vehicle with a strong safety record, whether you’re choosing a hybrid, electric, or conventional car.

Coverage Options Specific to Electric and Hybrid Vehicles

You’ll want to make sure you have the proper coverage for your vehicle's unique needs. Keep in mind the following key considerations:

Comprehensive and Collision Coverage

These coverages are important for protecting any vehicle from accidents, theft, and other damage. However, given the higher value and repair costs of electric and hybrid cars, carrying comprehensive and collision coverage is a smart choice.

Roadside Assistance

Electric vehicles may require unique roadside assistance for charging-related issues. A standard tow service may not be enough if your battery runs out while you're on the road. Make sure your roadside assistance coverage includes support for EV-specific needs. Wawanesa members enjoy affordable roadside assistance through our partnership with AAA.

Rental Reimbursement

Electric and hybrid vehicles may take longer to repair due to the specialized parts needed. Rental reimbursement coverage can help cover the cost of a rental car while your car is in the shop.

Bundling Discounts

An easy way to lower costs even more is to bundle your home and auto insurance for additional savings. This is an easy way to reduce your electric car insurance premium.

How to Choose the Right Car Insurance Provider for Electric and Hybrid Vehicles

When shopping around for electric car insurance or hybrid car insurance, look for companies experienced in insuring eco-friendly vehicles. Compare policies that cater to the specific needs of electric and hybrid car owners and ask about available discounts.

At Wawanesa, we understand electric and hybrid vehicle drivers' unique needs. Wawanesa members can benefit from competitive rates, coverage tailored to their vehicles, and exceptional customer service.

If you’re looking for reliable insurance for your EV or hybrid cars, Wawanesa has you covered. Contact us today to see how you can save on a new policy.

FAQs

Do electric/hybrid cars cost more to insure?
Electric and hybrid car insurance rates tend to be higher because these vehicles often have expensive batteries that can be costly to repair or replace. Additionally, specialized technicians are required for repairs, which increases the cost. While electric and hybrid vehicles have fewer mechanical parts, the high-tech features and overall vehicle value also contribute to higher premiums. However, many electric/hybrid cars come with advanced safety features, which can help offset some of the cost by lowering the overall risk.