Electric vehicles once seemed like a dream, but now they’re a reality. These SUVs and cars need special batteries to power them, have to be plugged in when those batteries run low, and even need specifically equipped tow trucks when they break down. All of this adds up to different insurance needs than standard cars.
As more and more people purchase electric vehicles, also known as EVs for short, it’s important to know the differences between insurance for one of these cars versus a standard, gasoline-powered one. Here’s a quick breakdown of the coverages you may need.
The Battery
Unlike standard vehicles that use a gasoline-powered engine, the one in EVs is run by a large, extremely powerful battery. These batteries can run into the tens of thousands to replace, and like most rechargeable ones, eventually are unable to hold a charge long enough to get you from point A to point B. Called battery degradation, most car insurance plans, even those adjusted for EVs, don’t cover this particular problem. However, if the battery is damaged in a crash or via fire or water, your insurance company may cover its replacement, as long as your policy is set up for an electric vehicle.
The Charging Setup
Another expensive problem can occur with your EVs charging setup. This is an extremely important part of the SUV, because it charges the battery. You need to plug in the vehicle to keep the battery charged when it’s not in use. Since only EVs have these charging setups, which require a specific outlet with enough juice to get the job done, your car insurance needs to have a special provision for them. Without this coverage, it could be very expensive to get the charging setup repaired out of pocket, so check with your insurance agent to make sure that you have this particular coverage.
The High Repair and Replacement Costs
EVs aren’t cheap. While some of them may be priced similarly to the other gas-powered cars on the lot, there are additional expenses that standard cars don’t have. For example, the battery that runs the EVs’ engine can cost between $15,000 and $20,000 to replace. Other repairs need to be done by a mechanic who has specialized EV training in order to ensure that everything goes smoothly. This often costs more than the same repair on a standard car.
Plus, there are additional issues that can arise, like towing services should your EV break down. You’ll need to use a towing company that is authorized to work with EVs, which again, may cost extra. All of these things add up and explain why a standard auto insurance policy may not be the best fit for your EV.
Choosing the Best Insurance for Your Electric Vehicle
If you’re ready to find the best possible plan for your EV, reach out to Spivey Insurance. Our knowledgeable agents can help you decide which coverages are best, as well as find a plan to fit your budget. All that you need to do is call!