Insurance Companies Realize What Is Happening With EVs – Things Could Soon Get Expensive

It almost seems as if as each month passes, we get one more bit of evidence showing why buying an electric vehicle is a bad idea, and now we are seeing that even the insurance industry is starting to see the problems with the 💻Technology.

Insurers are finding that many of the costs a car owner faces are higher for EVs than for gas-powered vehicles. A June review of EV insurance costs published by Market Watch notes right at the outset that insurance prices for EVs are higher than for gas cars.

One reason right off the top is the fact that new EVs are generally more expensive than new gas cars, and, naturally, the higher the price tag on something, the higher an insurer is going to charge to cover the item. Market Watch noted that “the average price of a new EV reached $58,940. This is more than $10,000 higher than the industry average cost of a new vehicle at that same time, which was $48,008.”

Market Watch added that coverage for EVs are “anywhere from 10 percent to 135 percent” higher than the national average depending on which EV you want to insure.

So, right off, before anything else is even considered, the higher price tag on a new EV starts car owners out with higher insurance costs. But there are many more reasons that EV insurance costs are worse for EV owners, including repair costs.

“High repair costs play a significant role in determining EV insurance premiums as well,” Market Watch reported. “While there are fewer components at risk of breaking down in an EV, the parts that do require repair or replacement are much more expensive. This is especially true if an EV’s battery pack is damaged. ConsumerAffairs found that the average cost to replace an EV battery ranges from about $4,500 to nearly $18,000.”