Car insurance is one of the basics that modern vehicle drivers are looking for and with electric cars entering the market, many are comparing the costs of insurance for electric vehicles and internal combustion fuel cars that run on gasoline and diesel.

A recent analysis by financial advisory website MoneyGeek found that electric car models cost on average 15% more insurance fees than conventional gasoline cars.

The study found that among electric car models with corresponding combustion models, insurance premiums rise by 6% to 40%, and the cost of insuring Tesla models is among the most electric cars.

Most expensive insurance

The 2021 Porsche Taycan with an annual insurance premium of $3,567 tops the auto insurance list as the most expensive electric car; That's 1.5 times the average annual cost of auto insurance of $1,424, the South Florida Reporter reported.

Tesla Model Y cars for $1,901, Tesla Model X for $2,885 and Tesla Model S for $3,022 are the next 3 highest premiums in electric car insurance.

The Hyundai Kona electric car is at the bottom of the premium list; The typical annual auto insurance premium for this car is $1,339, which is just below the US national average.

Those auto insurance rates are still lower than the popular gasoline-powered Honda Accord, which costs $1,234 a year to insure, while a conventional Toyota Camry is the lowest yet, at $1,267 a year.

Tesla cars

Tesla cars are among the most expensive electric cars in terms of car insurance premiums; A MoneyGeek study of 17 electric car models found that 3 of the 5 electric cars with the highest insurance costs were Tesla's Model Y, Model X and Model S electric.

In general, the higher the price of the car; Car insurance is getting more expensive, which is part of the reason Tesla car insurance premiums are higher than average.

In addition, repair and maintenance costs for Tesla cars seem to be much higher than most cars, which is another reason why insurance is so expensive for Tesla.

A 2015 study by the Insurance Institute for Highway Safety (IIHS) reported that the Tesla Model S has a track record of higher insurance claims and overall losses compared to similar large luxury cars.

The increased likelihood of claims is believed to be due to the $16,000 replacement cost of the car battery.

The Kelly Blue Book website reported that a battery replacement for the average car ranges between $45 and $250, the South Florida Reporter reported.

Electric car insurance

Auto insurance costs for electric cars tend to be much higher than for conventional cars; Where the principle of insurance differs between the two types.

Price difference:

On average, electric cars cost more than combustion cars; An analysis by MoneyGeek found that the average price of the electric version of the car model is 50% higher than its gasoline counterpart.

Accident exposure:

There are many sensor-based applications in electric vehicles; Hence, it becomes more vulnerable to damage in the event of accidents.

Replacing spare parts instead of repairing them:

Note that electric vehicles have components of various sizes and sensor parts that do not repair and are recommended for replacement.

Insurers say that, in the event of an accident, electric vehicle parts are more likely to need replacement than repair; This will increase the expenses that the insurance company will pay.

The cost of spare parts:

Miranda Yan pointed out that the higher price of spare parts will increase the cost of repair for the insurance company, for example, the more engineered batteries will cost more that the insurance companies will cover.

She added that the cost of replacing these batteries, on average, can be about $7,350; This is because the materials needed to power the battery and give it more power are often expensive.

Combined spare parts replacement:

Since the market is still new for electric cars; Parts suppliers are unlikely to enter a less competitive market; This makes replacement parts more expensive, according to Miranda Yan.

In addition, the repair takes more time and requires a group of skilled technicians; Due to these limitations, the combined parts are often replaced after an accident.

Advantages of electric cars

While insurance costs may be more expensive; Owning an electric car may save money in some ways that traditional cars can't, and in many cases charging an electric car is cheaper than filling a regular car with gasoline.

Since electric cars are powered by a single component, the electric motor, It does not contain as many mechanical parts as gasoline-powered cars; This means that fewer regular maintenance services are required.

Maintenance of electric vehicles is estimated to cost less than $330 for a gasoline-powered vehicle on average per year.