AUTO INSURANCE ARTICLE
Things You Need to Know About Electric Car Insurance
By: coppeneurRising fuel prices, environmental awareness, and for the more politically engaged, the general disdain with oil-motivated wars have made electric cars increasingly popular.
Although a 100-percent electric car has yet to be in showrooms, demand is expected to be massive. With the exception of Chrysler, none of the major automotive companies in the US has yet rolled out a fully-electric built car.
In general, electric cars fall under three categories: production electric cars (PECs), electric conversion vehicles (ECVs) and low-speed vehicles (LSVs). Majority of the estimated 60,000 electric cars in the United States are LSVs. To date, to drive an LSV is not yet legal in nine states (Alabama, Connecticut, Kentucky, Massachusetts, Mississippi, Montana, Nebraska, Pennsylvania and Wyoming) and the District of Columbia.
Are you thinking of getting an electric car, specifically an LSV, for yourself? As shorthand, we will refer to LSV as electric car in this article.
Electric cars are perhaps most appropriate for a specific set of motorists. That would be those who drive 40 miles or less per day to work, households with multiple vehicles and city residents who walk, take public transport more than drive. Since electric cars employ an electric motor usually powered by a bank of rechargeable batteries, it cannot go to long trips as your standard car would.
But like any other vehicle, to be able to legally operate an electric car, you do need to have auto insurance for it. All things being equal, insurance premiums are calculated based on a number of factors including car type, cost of the car and the personal characteristics of the driver.
Your personal driving record and your age are only part of what the insurance company sees. They also look at the general group that would choose such a car. Most electric car drivers fall into a category of drivers who are typically married, between 41 and 60 years old, and have enough experience behind the wheel, and thus, have lower claims incidence. Aside from that, insurance providers also will factor in the nature of your car choice. Owing to the increasing respect on the electric car’s nature of mechanical advancement, you are a candidate for insurance rates reduction. Simply, from the insurance companies' point of view, the cars and the kinds of drivers you belong to are statistically cheaper to insure.
Getting electric car insurance might not give a different experience from buying insurance for your standard car. But, there are points that you need to take into account still. Some auto insurance companies give rates for electric cars at the same level if not higher than standard cars. Since these kinds of cars are new, risks in accidents have not yet been fully calculated. Insurance companies rarely turn away anyone who wants covered, but they will adjust their rates accordingly.
So what’s important is choosing an insurance company that has built a reputation in the auto insurance market, one whose financial health is secure, one with an organized claims process, and dependable customer service.