Are Insurance Rates Different for Electric & Hybrid?

The sale of electric and hybrid cars has been on the rise in recent years. It is easy to see why as society is becoming more eco-conscious, plus the skyrocketing cost of fuel in recent times has encouraged many to make the switch. There are many benefits to switching to an electric or hybrid, but it is important to consider insurance before you decide to make the change.

Insuring a Hybrid or Electric

There are financial benefits to switching to an electric or hybrid, but you do need to prepare for the fact that it is currently more expensive to insure these vehicles compared to internal combustion engine (ICE) powered vehicles. The reasoning for this is that insurers have been cautious in their approach to insuring eco-friendly vehicles, largely because there is not a huge amount of data on the cost of repairs.

Additionally, electric and hybrid vehicles can be harder to repair as there are not as many mechanics with expertise in repairing these vehicles. On top of all this, electric vehicles and hybrid vehicles are often more expensive than traditional cars, which means that they are more expensive to replace. Consequently, in recent years, insurance has been higher for these vehicles and also harder to find with many insurance companies refusing to insure electric vehicles.

The Changing Landscape

Although it is more expensive to insure hybrid and electric cars right now, you should know that the situation is changing. Electric car insurance and hybrid car insurance are starting to come down with many experts stating that parity could be on the horizon.

Insurance for eco-friendly vehicles is coming down because there is now a lot more data available on how much they cost to repair. In addition to this, there is a growing number of mechanics that can fix these cars, and, in fact, there are fewer parts that can be damaged compared to an ICE-powered car. If you work in the auto industry and require motor trade insurance, you should always make sure that you are covered for hybrids and EVs.

Electric cars are also becoming more common, which has meant that many more insurance companies have entered the market and increased competition will always bring costs down. On top of all this, statistics show that electric cars are less likely to be stolen due to their limited range, which can make them less of a risk for insurers. 

It is positive to see the cost of insurance for electric cars and hybrids coming down, which should encourage more motorists to make the switch. As the cost can vary so much, it is always a smart idea to shop around and compare your options. Additionally, you should not auto-renew as you should find that costs have come down since you last took out a policy.