Car Insurance and Electric Vehicles: What You Should Know

0
Car Insurance and Electric Vehicles: What You Should Know
andreas160578 / Pixabay

The International Energy Agency (IEA) has initiatives to support electric vehicles more than ever, to help accelerate the introduction of electric cars globally. As we know, electric vehicles are good for the environment, but are they good for your pocket?

Play Quizzes 4

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2021 hedge fund letters, conferences and more

In this article we will look at the benefits of driving an electric vehicle and find out what influence it will have on your car insurance. Will your premiums go up or down?

Voss Value Sees Plenty Of Opportunities In Cheap Small Caps [Exclusive]

investFor the first quarter of 2022, the Voss Value Fund returned -5.5% net of fees and expenses compared to a -7.5% total return for the Russell 2000 and a -4.6% total return for the S&P 500. According to a copy of the firm’s first-quarter letter to investors, a copy of which ValueWalk has been able Read More

Driving an electric vehicle has several benefits. To state the obvious, you won’t have to pay for fuel because the vehicle runs on electricity, so you only have to charge the battery. Imagine never having to pay for petrol or diesel again! And if you drive a hybrid vehicle, which uses fuel and electricity, you will save on petrol or diesel because you won’t have to fill it up as often.

Drivers of electric vehicles also don’t have to pay any road tax, while drivers of hybrids qualify for reduced rates. And electric vehicles don’t make any noise, so they don’t create noise pollution.

Another great thing about them is that you could get your power for free. Certain councils and employers offer free or low-cost charging benefits. Another incentive is free, priority or dedicated parking bays. For instance, the residents in the UK Westminster can park for free if they get a permit - and many US cities have similar initiatives. Yet on a national level, the US is a leader in the area of Federal Tax Credits for All-Electric Vehicles. Another close ally, Australia, is criticized for some states having the worst EV policy in the world. Governments aside, there are other costs to consider. Fortunately, a wealth of information is available around the world.

Consumers do their research

It is not to say that consumers jump in blindly, albeit that going green is a major trend: Many people will compare car insurance rates on sites like NerdWallet and Insurify. But remember, making sure that the environment wins from any decisions you make, should satisfy your needs for both ethical investing and ethical consumerism.

Most companies will insure your electric vehicle

But will the insurance be more, and if so, how much more? The good news is that your insurance premium will most likely be less than that of a normal vehicle. Experts believe that some insurers will offer you up to 5% off your premium if you insure an electric vehicle, while others will make donations to environmental charities on your behalf. It is therefore always a good idea to compare different companies to ensure that you get the best deal possible. Using MoneyExpert is an excellent way to compare quotes from different UK car insurers.

Not all car insurers offer cover for electric cars, but there are plenty of other companies who do. Some even specialise in providing cover for electric cars. They will offer conventional cover and pay special attention to issues that are specific to electric vehicles, such as battery leasing and recharging. And even if the insurer doesn’t specialise in electric vehicles they will probably be more than happy to insure your car, as long as you specify your requirements beforehand.

The reason electric vehicles will likely cost you less to insure is because they are sometimes less powerful. There are also less moving parts, which makes servicing and repairs easier and cheaper.

Use Clean Air Zones for free

Clean Air Zones are being introduced in certain areas of the UK in an attempt to reduce pollution. Cars that use fuel have to pay to enter these areas. However, if you drive an electric car you can enter them for free. One of these areas is located in London. Electric car drivers who have registered their vehicle can drive in the normal polluted zone or in the new Ultra Low Emission Zone without it costing them a penny. But if you drive a normal vehicle it will cost you quite a few pounds to use the special clean zone every day.

One can consider a list of some of the best electric cars available in Europe and the US today. These include the Tesla Model 3, Porsche Taycan, Ford Mustang Mach-E, Renault Zoe, Tesla Model S, Kia e-Niro, Kia Soul, Volkswagen ID.3, Polestar 2, and Jaguar i-Pace.

Our planet is the real winner

It doesn’t matter which electric vehicle you choose, it will be a good choice because it will help to reduce pollution. Electric cars don’t have an exhaust pipe, so they produce zero carbon emissions. This will benefit the environment greatly. And that is what is really important.

Paying less for your insurance and getting all kinds of discounts and benefits are nice, but ultimately it is all about saving our planet. If each person and company reduces their carbon footprint then our children and grandchildren will be able to live in a clean, healthy environment that is free from pollution.

Updated on

Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
Previous article Silver, There’s So Much More Going On.
Next article Tellurian’s netback formula deficits with Gunvor and Vitol

No posts to display