Does insurance cost more for Electric Vehicles?

Insurance companies base their rates on various factors, such as prior claims for similar vehicles, to determine pricing. For instance, if a particular electric car model has a history of frequent and costly claims, then insurance rates for all owners of that model will generally be higher. There are several reasons why electric cars may be more expensive to insure.

First, the cost of repairing and replacing electric parts is typically more expensive than non-electric counterparts.

Replacement parts for an EV are 2.7% pricier than those for a gas-powered car. Second, replacing a damaged battery in an EV can cost between $5,000 and $15,000, as per GreenCars, a website that offers tools and resources for electric car shoppers.

Finally, repair shops may charge more for repairing EVs due to the specialized training required.

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