You’ll Never Believe the cheap Cost to Renew My Electric Car Insurance
Electric car insurance rates can be eye-watering, and I’m here to break down why renewing my electric car insurance was more expensive than I expected. The actual cost, why it’s high, and some of the hidden costs you may encounter with electric cars are all worth knowing if you’re considering an EV. So, buckle up as we take a drive through the real story behind electric car insurance costs.
Electric Car Insurance Rates and the Renewal Process
When it came time to renew my electric car insurance, I was shocked at the quote I received. After years of loyalty to my current insurer, I expected a smooth, affordable renewal. Instead, I discovered that many insurance companies are reevaluating electric vehicle (EV) policies and increasing premiums. My insurer, for instance, informed me that they’d almost stopped insuring electric cars altogether. Thankfully, they allowed me to renew because I was an existing customer. But the price increase? Substantial, to say the least.
Why is electric car insurance often more costly? One of the biggest factors is the battery replacement cost. If the battery is damaged in an accident, replacing it can cost upwards of £40,000, which is often more than the entire car’s value. As a result, insurers may decide the vehicle is a write-off. This risk factor translates into higher premiums, as insurance companies brace for these high-cost claims.
The Pain of Public EV Charging: Extra Costs and Delays
While exploring how to save on my electric car insurance, I’ve also encountered more frustrations with public EV charging. Using public charging stations like Instavolt can cost up to 85p per kilowatt. To make matters worse, the transaction doesn’t stop at the charging fee; there’s a pre-authorization fee of £45, which is debited from your account immediately. Although this fee is eventually refunded, it takes about four days to return. Imagine how much free credit charging companies like Instavolt are making if thousands of drivers are using their services daily. Charging these additional fees, and holding onto them, feels like an unnecessary inconvenience, to say the least.
Comparison of EV Charging Costs with Petrol and Diesel Vehicles
The per-kilowatt cost of EV charging at certain public stations now rivals or even exceeds the cost per mile of driving a petrol or diesel car. For instance, a recent charge at Ionity cost me around £18.50. For that same amount, I could drive further and refuel more quickly with a petrol or diesel vehicle. Additionally, many of these EV charging stations don’t accept cash, which means credit or debit cards are your only option. Cash is no longer king in the EV world.
The Hidden Depreciation Costs of Electric Cars
Depreciation on electric cars is another critical factor that adds to the overall cost. I invested significantly in my electric car, adding multiple features and upgrades, but the vehicle’s value has depreciated much faster than a petrol or diesel car would have. A friend of mine recently turned in his electric car lease early because the residual value was shockingly low. He found himself in negative equity to the tune of around £32,000. This depreciation rate isn’t widely discussed, but it’s another hidden cost that impacts electric vehicle ownership.
How Battery Issues Drive Up Electric Car Insurance Rates
One of the lesser-known reasons for the high cost of electric car insurance is the potential battery replacement cost. With some models, battery replacement can cost over £40,000. These steep repair costs drive up insurance rates, which are then passed onto the consumer. Some insurers are even rumored to be raising the rates for petrol and diesel vehicles to help offset the cost of covering electric cars. The increased insurance premium may also discourage new buyers from considering EVs as a cost-effective alternative.
Insurance Companies’ Approach to EV Policies
As electric vehicles become more popular, many insurance companies are rethinking how they handle EV policies. Some insurers have chosen to either reduce the number of new EV policies they offer or to significantly increase premiums. This increase isn’t just impacting new customers either; it’s also affecting long-standing clients who have historically received discounts for loyalty. While I was able to negotiate a slightly reduced renewal rate, my electric car insurance cost remains high, and I had to make some budget adjustments to cover it.
Public Perception of EV Costs and Environmental Benefits
The EV industry has made a strong environmental argument for switching to electric cars, but many real-life factors don’t always support that narrative. Public charging stations are frequently busy, and the long waits add another level of inconvenience. The notion that EVs are “the future” is increasingly questioned when considering the substantial costs of charging, maintenance, and insurance.
Addressing EV Battery Lifespan Concerns
Battery technology is advancing, but the battery lifespan in electric vehicles remains a concern for many consumers. For instance, some commercial vehicles that use lithium-based batteries require regular recharging that can significantly reduce their lifespan over time. Replacement costs aren’t the only factor; wear-and-tear on these batteries can result in increased frequency of replacements, which impacts resale value.
Managing Your Electric Car Insurance Costs
If you’re already driving an electric vehicle or considering buying one, here are some strategies to help you save on insurance:
- Compare Multiple Quotes: Don’t rely solely on your existing insurance company. Use comparison tools to find more competitive rates.
- Ask About Discounts: Some insurers offer discounts for safe driving, bundling policies, or loyalty. While these discounts may not always offset the high premium, every bit helps.
- Install Safety Features: Adding safety features like alarms or tracking devices can sometimes reduce insurance premiums.
- Review Usage and Mileage: Since electric cars are typically driven less due to charging logistics, reducing your declared annual mileage can lower insurance costs.
- Consider Battery Coverage Options: Certain insurance providers offer specialized coverage for battery-related issues, though these policies can be more expensive.
The Bottom Line on Electric Car Insurance and Hidden Costs
With increased costs across the board—from charging fees to battery replacement costs—it’s important to weigh both the financial and environmental pros and cons of driving an electric car. Additionally, electric car insurance premiums remain notably high, especially when compared to those for petrol and diesel vehicles. The industry’s future may hold more incentives and better support for EVs, but for now, potential buyers should do their research to understand the true cost of owning an electric car.
Recommended Resources:
For anyone interested in shopping for electric car insurance, check out providers like Direct Line or LV= to compare rates and learn more about the costs involved.
Electric cars may still be the future, but understanding their costs today is essential for making an informed decision. Make sure you’re ready to budget for both the initial purchase price and the ongoing expenses of ownership, from insurance costs to charging fees and beyond.
