Posted on 03/03/2023 8:33:30 AM PST by Oldeconomybuyer
There are certain nuances to insuring electric vehicles that car shoppers might want to know before they commit.
Electric cars have a lot of similarities to gas-powered cars, but they also bring some distinct differences. Right now, new EVs cost more on average. They have powerful batteries. And they're more electronic than ever.
All of those factors could play a role in an EV owner's insurance policy.
The latest estimate from NerdWallet said the national average cost of car insurance stands at about $2,148 per year. Meanwhile, the same for EVs is $2,280 annually, according to a Forbes Advisor analysis. That could mean average annual premiums of $1,830 for a Chevrolet Bolt or $4,066 for a Tesla Model S, says financial services company Bankrate.
So why is that? Generally, more-expensive vehicles are more expensive to cover, and most EVs are, right now, have steeper price tags; a new one sold for $58,725 on average in January, according to Kelley Blue Book.
Their batteries are also costly, and high in value. EVs might have less mechanical parts than an internal combustion engine vehicle, but they're chock-full of expensive electronic components and sensors.
"Those parts can be pricey," according to insurance provider Progressive. "If the battery pack is damaged, certain safety protocols are often necessary, adding more to the repair bill. Plus, there aren't as many shops with technicians trained to fix electric vehicles versus traditional vehicles."
Provider State Farm said an EV battery repair could cost anywhere from $5,000 to $15,000, and would likely require costly, specialized labor.
While collision and property damage liability claims for EVs tend to happen at lower frequencies than with conventional vehicles, according to the Highway Loss Data Institute, the severity of claims tends to be higher. But that's been lowering over time.
(Excerpt) Read more at msn.com ...
My EV costs $70/month to insure than the old used ICE car we replaced. But most of that was because we changed from liability only coverage to full coverage.
A friend is assistant fire chief in our town. I recently asked him: “how do you handle an EV fire?”
His reply: “we let it burn.”
Insurance is based on repair/replacement cost. There isn’t a single $20k part in an ICE car that is usually replaced by insurance from an accident.
The Battery is an integral part of the body and is routinely damaged in a wreck. I would imagine it wouldn’t take much to total an EV.
Indeed. Collision coverage on our Fusion Energi is higher than on my F-150
If your EV catches fire in your garage and burns you house to the ground who do you call.....your auto or homeowners insurance?
Direct link (MSN did not create the article):
I'll stay with my 2019 Jeep Grand Cherokee Supercharged HEMI V8, thankyouverymuch.
I would guess that part of the reason for that is the risk of electrocution.
In my younger days I was a nationally licensed race track firefighter. We were trained/cautioned to ALWAYS pull the battery disconnect on a race car prior to hitting it with water/light water. The first attack was always with dry powder, and light water for burning fuel/oil on the track surface. The trucks were small compared to what you see in a city, so there wasn’t THAT much water capacity.
I don’t have any idea what the firefighting protocol is for these new series where the race cars are ALL electric.
“While collision and property damage liability claims for EVs tend to happen at lower frequencies than with conventional vehicles”
That’s surprising based on what I observe about EV drivers’ habits on the road. They are like the BMW, Audi and Porsche drivers of yore.
Oh, you just wait. Eventually the government will make it illegal for insurance companies to charge more for EVs. Then everyone’s rates go up. Or maybe the government will decide on a less oppressive route, and simply subsidize EV insurance.
Nothing must stand in the way of our perfect, pretend green future!
Insurance companies seem to be trending towards totaling vehicles vs repair.
Vehicles that are stolen and have been used in crimes where drugs and paraphernalia have been left in the vehicle is one factor. Insurance companies don’t want the costs or liabilities of certified decontamination.
Similar expedited totaling of an EV may be their preference.
Who wants to chase wiring and chips and modules? I can’t imagine having an EV for a long time without wondering when it’ll fail.
My friend (the fire chief) said the smoke is toxic, and the lithium-salts are "self-oxidizing" so when you think you're done, the damm thing can spontaneously re-ignite, and while you can use water - you need A LOT of it.
Ideally would use foam, but most small local FD's are not equipped. Once an EV catches fire, the EV itself is ruined, so they let it burn if there is no danger to other property
If the EV fire is in a garage, their goal is try to isolate it from adjoining structures
Since we live in a relatively small, northern town - he said "we don't have too many EV's in town, thank God."
Same insurer silly. Let's see about the odds of that happening....hmmmm.... If it's 623 EV's catching fire while charging per year, out of about 2 million EV's, hmmmm....
That means a 0.03% chance the EV will catch fire at home. And that's not even counting that most of the charging fires are hybrid PHEV's instead of BEV's. Maybe I need to worry more about kitchen fires, or be glad I no longer have natural gas service.
average cost of car insurance stands at about $2,148 per year. Meanwhile, the same for EVs is $2,280 annually,
Electric vehicles that are powered by a battery array are a dead end. And no bargain by any measure of the word.
The concept of powering a vehicle with electric motors is probably the most efficient means of delivering power to the wheels of any possible drive train configuration that has yet been developed. The problem is in the power source that feeds power to the electric motors.
Hybrid vehicles, that rely on an internal-combustion engine to drive a generator that directs power to the wheels, are of a design that is being discarded much too rapidly. Hybrids are much more flexible in their applications than a plug-in fully battery powered electric vehicle, and as long as you have access to fuel for the IC engine, you are almost always going to cripple back home. If the battery powered electric vehicle, charged by plug-in source only, craps out entirely, you have a brick sitting on four wheels out along the road somewhere.
Electric vehicles will come to their full potential only when hydrogen fuel cell technology reaches wide acceptance at a reasonable price, and that can only come from an electric grid capable of generating the hydrogen by electrolysis, again at a very cheap cost for the generation of the electricity, and distribution of the hydrogen formed by this process. I see something like a swap-out of filled hydrogen storage vessels for the empty ones, much like propane tanks on a barbeque grill.
“Same insurer silly”
Mines not.
I do find it interesting though that you have that data handy.
Does that include all the EVs that caught fire in Florida after hurricane Ian caused the batteries to be exposed to salt water? 🤔
How long before criminals figure out that all that expensive electronic devices can be harvested and sold on the black market?
If I lived in a hurricane prone area I'd look into it. Same with charger slowness and range problems from bitter cold if I lived up north.
The real problems I face are the Dims making energy less dependable and more expensive. They're threatening our retirement savings with their rampant inflation, especially energy cost inflation. The EV helps me fight that by helping me lower how much energy I have to buy.
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