Electric Vehicles

Calculating the Real Electric Car Savings

It may surprise many, but electric cars were in before the gasoline powered internal combustion engine cars that we are used to were all that popular. In the late 1800s, electric cars were breaking land speed records for automobiles – including the 62 mph La Jamais Contente that set the record in May of 1899.

In the 1970s and ’80s, the interest in electric cars picked back up as gasoline prices skyrocketed. By the time the ’90s came around, public interest and government support meant that nearly every major auto maker had an electric model available.

Oil lobbying seemed to crush that movement. However, the 2010s will be the decade that brings electric cars into vogue. It’s a perfect storm: incredible gas prices, renewable energy burgeoning, and an international consensus on climate change forcing people to recognize the time for a change.

The all-electric company Tesla is expanding around the world and doing quite well. The highly anticipated Chevy Volt has hit the streets to rave reviews. Nissan has begun pushing their own electric-only model, which is $10,000 cheaper than the Volt, and Ford has the new Focus Electric that it hopes will make waves internationally. With government incentive programs, these cars are sure to sell given the benefits to the environment, economy, and personal finance.

But are they cost-effective to insure?

A number of factors about the car influence your cost of insurance, but the big three are replacement cost, repair cost, and safety.

Replacement Cost

This just depends on how expensive your vehicle was in the first place. The Leaf and Focus might not cost so much to replace, but if you buy the more expensive Volt or a Tesla, you are going to have to buy more coverage to have your vehicle replaced. Furthermore, you won’t get a government voucher this time!

Tip: Get gap insurance if you get an electric vehicle. Your car loses one-third of its value when you drive it off the dealer lot, so make sure you don’t lose one-third of what you paid. For one, there aren’t many used models available because these cars are so new.

Repair Costs

While many repairs can be done by any mechanic, internal repairs are going to need to be brought to an electric car repairperson or a dealer. The parts are rarer and more expensive as well, so electric cars can cost a bit more to repair. You’ll have to pay a tad extra in insurance.

Vehicle Safety

This varies vehicle to vehicle. Testing shows electrics are as safe as any other vehicle, but roadside statistics will have to come in before some for the insurer skepticism can die down.

So it is worth it?

No question, you’ll save more with an electric car over the long run than you’ll pay in insurance. You can always use auto insurance quotes to get the lowest rates. Auto insurance quotes can help offset some of the cost. Because insuring electric cars is so new, prices on policies are wildly different, compared to other vehicles. Use auto insurance quotes to makes sure you get the best deal.

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