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Auto Insurance – Another Barrier to Electric Vehicle Ownership?


One of the problems with electric vehicles [EV] has always been the price. Rechargeable battery technology has seen a lot of improvement, but still remains a large chunk of vehicle price. Of course, since EVs are much more economical to drive, one of the selling points is the recovery of the up-front purchase price with the gasoline savings.

It seems like there is another cost that some haven’t considered, which is the price of auto insurance.

Generally speaking, the components of an EV, specifically the power-train, including the electric motors and the rechargeable battery pack, as well as high-tech control systems.

Buyers of new electric vehicles will most likely be making payments on their new vehicle, and therefore need full coverage auto insurance, including comprehensive and collision, to be fully protected.

Accidents and damage, such as flooding, could mean the total loss of a vehicle, and in the case of an EV, even the small Chevy Volt is worth $40,000. It’s possible that the added premiums to cover an electric vehicle, might actually outweigh the fuel savings, so those considering an EV might have to take this into consideration, whether they can afford to go green after all.

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