Hybrids and Electric Cars: Does Saving the Planet Save You Money?
The answer isn’t a simple yes or no. In recent years, the popularity of electric vehicles has skyrocketed. With concern for the environment and the draw of financial savings, many people are trading in their gas-guzzlers for energy-efficient cars. Hybrid cars and fully electric vehicles offer alternatives. The question is whether owning these vehicles is actually more cost-effective.
There are a number of variables that come into play. On one hand, there are tax incentives and the savings on gas for hybrid cars. Consumers like the idea of being free from the constant ups and downs in gas prices. They surge unpredictably and hold drivers hostage, costing them a fortune just to get from point A to point B. Dependent on their work commute, the price can really add up. So,
the benefits of a vehicle that runs on electricity are obvious. However, auto insurance for electric vehicles is where the savings stop. Unfortunately, due to the specialist repair work required to fix damage, insurance companies charge more for covering electric vehicles. In addition, electric vehicles are more expensive to purchase, making them more costly to replace in the event that the car is totaled.
Higher Insurance Prices
The high price is generally due to the fact that hybrid cars are fairly new on the scene. As electric cars become more prevalent, it will likely become easier, and, therefore, cheaper to make repairs. This will drive insurance costs down, so there is hope on the horizon. However, for now, expect to pay more on average with an electric vehicle. Another thing to consider is the convenient availability of an electric charging station. Most people choose to install a port at their home, because they are not readily available at work places and stores. Installation can be quite expensive. In addition, in at least 2 states (Oregon and California), some condo and homeowners are mandated to have liability coverage for the charging equipment. That can increase home insurance in addition to other costs.
For auto insurance, it is crucial to shop around and find the company that offers you the best deal. Insurance companies will have different policies and offer different rates, which is where the opportunity come in for consumers. Sample quotes from New York for Geico, State Farm, and Allstate showed roughly 23% higher insurance rates for electric cars. There was still a lot of variation between companies. This leaves the door open for consumers to compare costs and find the most affordable coverage. Also, don’t forget that your personal driving record and the exact type of car you drive will affect your rates. If you have or are thinking of buying an electric car, make sure you do your research. You can start by entering your information on the site to get quotes!