The Financial Express
By Rakesh Goyal, Director, Probus Insurance Broker
Electric vehicles are a great way to reduce carbon footprint and save money on fuel costs. With high gas prices and the climate crisis, it’s time to consider green transportation options like electric cars.
However, EV insurance is one of the biggest expenses for most drivers. Self-Financial has recently reported that electric vehicles are, on average, nearly $442 more expensive to insure than fossil-powered vehicles. The average annual insurance cost for an EV is $1,674 per year compared to $1,232 for a fossil-powered vehicle.
Therefore, it makes sense to ensure you have the right kind of coverage in place before embarking on this new journey into the realm of electric vehicles.
This is a key question for any driver who goes electric. How much will my monthly payment be? Is there a way to reduce the cost of my insurance? Will I still have to pay taxes? If so, what tax rate am I subject to?
You’ll want to ensure you’ve covered all of your bases before making any decisions about going electric. You don’t want to make a bad decision that could be costly down the line.
Hence, it’s worth looking into ways to minimise the cost of your premiums:
The first is to choose a policy that is right for your needs. You should always buy the best, most affordable insurance policy for your electric car, so it’s important to know what kind of coverage you need and what you don’t, necessarily.
Another way to reduce the electric vehicle insurance cost is by comparing quotes from different companies. You may observe that one company offers a better deal than another. You should always buy the cheapest policy for your needs, but it’s also important to ensure that you get the best value for money from each company.
When shopping around, look for companies that offer discounts for green drivers and those who want to help the environment with their decisions. A few companies now offer discounts on premiums if you’re an environmentally friendly customer and/or are committed to reducing emissions from your driving habits (like going low emissions).
The most important thing to remember regarding your insurance coverage is that you can’t just go over your monthly budget and decide that now is the time to get an EV policy. It will help if you take the time to educate yourself on EV insurance policies and make sure that you’re doing things correctly before making any decisions about your coverage.
To conclude, we can say that the cost of EV insurance can be minimised by choosing the right policy, comparing quotes from different companies, and ensuring that you get coverage from companies that favor green drivers. This will help ensure you cut the best deal while getting one.
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