The Shocking Truth About Electric Car Insurance Costs
Grab your wallets, folks! If you thought driving an electric car was going to save you loads of cash, think again. This year, insurers have decided that electric and hybrid vehicles are the perfect excuse to increase prices faster than you can say “but my car runs on sunshine!” Fully comprehensive insurance for electric cars is up a staggering 30% compared to last year. That’s right, 30%! Meanwhile, the humble gasoline and diesel policies have only ticked up by a measly 25%. Can’t quite wrap your head around that? Well, you’re not alone!
The Pricey Repairs Conundrum
Now, let’s dive deeper into this automotive insurance quagmire. Contrary to popular belief, those glowing reviews of electric cars being the angels of the roads do not come cheap. According to some slick calculations from the General Association of the German Insurance Industry (GDV), repairing damage to an electric vehicle costs a whopping 25% more than its gasoline-guzzling counterpart. It’s like an electric car drives fine but gets into an accident and suddenly needs a gold-plated bumper!
But hang on a second—don’t electric cars come with those fabulous claims of being less prone to repairs? Absolutely! Electric car owners typically report around 20% fewer damages than your average petrolhead. What gives? It’s all about having the right garage mechanics who might think they are performing heart surgery on your battery-powered beloved. I mean, peace of mind is great, but at this rate, you might be more at risk of your wallet getting a blistering burn than the car getting a ding!
Insurance Companies Are Getting Smarter
As silly as it sounds, it seems the insurance companies are now wielding their calculators like pros. Wolfgang Schütz, Managing Director of Verivox, spouted some wisdom when he said, “The higher costs and the more precise risk assessment are now reflected in the insurance tariffs.” In other words: they’re learning how to play the game and they’re not losing any time raising payments on the EV crowd!
According to Verivox, the average increased costs for electric vehicles don’t automatically mean combustion engines will enjoy a cheaper fare. It’s one of those classic cases of, “I’m not saying it’s unfair, but… it’s really unfair!”
The Bottom Line: What Does This Mean for You?
If you’re considering making the switch to an electric ride, you might want to sit down first. The joyous experience of reducing your carbon footprint might be offset by the sting from those insurance quotes. It’s a bit like going on a diet and discovering the ‘healthy’ salad you’re eating costs more than your daily intake of donuts. So, weigh your options carefully! You may be trading in the joys of city driving for the shock of your life whenever you receive your insurance bill. Can anyone say “clutching their pearls”?
So, here’s a cheeky takeaway: while it’s fabulous to join the electric revolution, make sure to account for the potential pitfalls—and by pitfall, I mean your bank account going for a tumble. Remember, saving the world doesn’t have to cost you an arm and a leg… well, at least not *that* much!
Insurers have reported a notable increase in premiums for policies covering pure electric cars and hybrid vehicles, indicating a trend where these insurance costs have risen more steeply this year compared to traditional combustion engine vehicles. The average price for fully comprehensive insurance specific to electric vehicles has surged by 30 percent over the last year, in stark contrast to the 25 percent increase experienced by gasoline and diesel vehicle policies.
In contrast to motor vehicle liability, fully comprehensive tariffs also cover damage to your own car, which is why electrical-specific repair costs are much more significant with these tariffs than with combustion engines. Repairing electric vehicles has become notably more expensive, with data from the General Association of the German Insurance Industry (GDV) revealing that the costs associated with mending electric cars are, on average, 25 percent higher than the expenses incurred for comparable combustion engine vehicles.
Insurers are now better able to calculate the risks associated with electric cars
“The higher costs and the more precise risk assessment are now reflected in the insurance tariffs,” noted Wolfgang Schütz, Managing Director of Verivox Versicherungsvergleich GmbH. According to Verivox, the higher average costs do not mean that every single combustion engine would be cheaper to insure, as individual risk factors can drastically affect premiums.