2019’s Top Electric Cars And Their Insurance Rates
Many electric car buyers are considered lower risk thanks to their choice of car. However, insurance premiums are still 21% higher for EVs than the gas variant of the same. According to a recent analysis by McKinsey & Company Inc., electric vehicles are still about $12,000 more expensive for automakers to produce than internal combustion engine vehicles. Add to that, the gas version's premiums cost an average $1,442 a year, while the EV variant costs an average $1,663 annually.
The primary reason for the high cost of insurance is the lack of substantial data for insurance companies to assess the risk of electric vehicles. Repair costs will also be higher for EVs than regular vehicles because the former includes expensive batteries and technology that costs a lot to fix or replace. Your EV premium is also dictated by the state you live in. For example, the Tesla Model S will cost an average $4,369 to insure if you live in Michigan, but only $1,660 a year if you reside in Maine. Moreover, requiring a Tesla-specific body shop is another major contributor to the high insurance costs.
One way to save on an EV is by investing in pre-owned electric vehicles, they are both cheaper to purchase and insure. A two-year-old Tesla Model S will cost an average of $641 a year less than it takes to cover a new one. Whether you decide to buy a new EV or a pre-owned one, your actual insurance premium could vary depending on your driving record, the number of miles you drive in a year and other such factors.
- Chevy Volt- With a high list price of $33,220, the Volt's insurance costs are relatively low for a hybrid electric car at $915 annually
- Smart EQ ForTwo- One of the cheapest EVs to insure is the Smart EQ ForTwo with a base price of price of $23,000 and average annual insurance cost of $1,486
- Kia Soul- With a base pricing of about $33,950, the electric version of the Kia Soul has an average insurance premium of $1,663 annually
- Nissan Leaf- One of the more affordable electric vehicles on the list, the 2019 Leaf remains unchanged from the 2018 model in terms of price, costing about $29,990 with an average insurance rate of $1,727 annually
- Chevy Bolt- Considered to be the benchmark of mainstream electric vehicles, the Chevy Bolt starts at $36,620 and an additional $1,883 in annual insurance costs
- Fiat 500e- With a base price of $33,990 and an insurance average of $1,157, the Fiat 500e was ranked number one in Forbes' list of most affordable EVs to insure in 2019
- Tesla Model 3- Considered to be the least expensive of the Teslas, the Model 3 starts at $35,000 with an average insurance cost of $2,814
- BMW i3- BMW’s all-electric vehicle costs $44,450 with an average insurance cost of $2,172 a year
- Audi e-tron- The first electric SUV from Audi, the e-tron is priced at $74,800 with a relatively low insurance premium of about $1,845, despite the high sticker price of the car
- Tesla Model X- One of the most expensive cars in the luxury mid-size SUV segment, the Tesla Model X SUV starts at $88,000 and insurance could run as high as $3,042 annually, making this one of the most expensive EVs to own in the market today