Will Scout Motors Take Proactive Steps to Reduce Consumers' EV Auto Insurance?
A.I.
To reduce the cost of EV insurance, manufacturers can improve battery design, streamline repair, and offer training for technicians.
They can also invest in their own insurance operations.
Battery design
Streamline battery design: Advancements in battery production can help automakers create new EV models that save money without sacrificing performance.
Establish consistent battery testing and maintenance policies: This can help support the growth of the second-hand EV market.
Repair
Introduce simplified repair methods: This can help reduce the cost of repairs.
Provide repair kits at authorized workshops: This can help reduce the cost of repairs.
Offer training for technicians: This can help ensure that repairs are done correctly and efficiently.
Insurify
Electric Shock: EVs Cost 23% More to Insure Than Gas-Powered Vehicles
The average cost of full-coverage car insurance for electric vehicles is $3,430 annually, according to Insurify’s new report
Comparing EV costs to ICE vehicle costs
Electric vehicles can cost significantly less to power than an ICE car. Drivers who charge their EVs only at home could spend as little as $812 per year on electricity for their vehicles, according to Kelley Blue Book (KBB) calculations. By comparison, the average annual cost of gas is around $2,449, J.D. Power estimated based on Bureau of Labor Statistics data.
But other expenses, including the initial cost to purchase an EV, higher repair costs, and much higher insurance premiums can offset the fuel savings.
The average MSRP for EVs is $55,105 — 13% more than the average for ICEs, at $48,724, according to KBB. Auto insurers also charge more for higher-value vehicles since they typically cost more to repair or replace.
The average cost to repair an EV after an accident is $6,066, about 29% higher than the $4,703 average post-accident repair for ICEs, KBB reported.
All these factors contribute to EVs’ higher insurance rates. In 2024, it cost 23% more to insure an EV than an ICE vehicle, Insurify data shows. And the cost of EV car insurance rose 28% between 2022 and 2023, while car insurance for ICE vehicles increased by only 13% during the same time period.
A.I.
To reduce the cost of EV insurance, manufacturers can improve battery design, streamline repair, and offer training for technicians.
They can also invest in their own insurance operations.
Battery design
Streamline battery design: Advancements in battery production can help automakers create new EV models that save money without sacrificing performance.
Establish consistent battery testing and maintenance policies: This can help support the growth of the second-hand EV market.
Repair
Introduce simplified repair methods: This can help reduce the cost of repairs.
Provide repair kits at authorized workshops: This can help reduce the cost of repairs.
Offer training for technicians: This can help ensure that repairs are done correctly and efficiently.
Insurify
Electric Shock: EVs Cost 23% More to Insure Than Gas-Powered Vehicles
The average cost of full-coverage car insurance for electric vehicles is $3,430 annually, according to Insurify’s new report
Comparing EV costs to ICE vehicle costs
Electric vehicles can cost significantly less to power than an ICE car. Drivers who charge their EVs only at home could spend as little as $812 per year on electricity for their vehicles, according to Kelley Blue Book (KBB) calculations. By comparison, the average annual cost of gas is around $2,449, J.D. Power estimated based on Bureau of Labor Statistics data.
But other expenses, including the initial cost to purchase an EV, higher repair costs, and much higher insurance premiums can offset the fuel savings.
The average MSRP for EVs is $55,105 — 13% more than the average for ICEs, at $48,724, according to KBB. Auto insurers also charge more for higher-value vehicles since they typically cost more to repair or replace.
The average cost to repair an EV after an accident is $6,066, about 29% higher than the $4,703 average post-accident repair for ICEs, KBB reported.
All these factors contribute to EVs’ higher insurance rates. In 2024, it cost 23% more to insure an EV than an ICE vehicle, Insurify data shows. And the cost of EV car insurance rose 28% between 2022 and 2023, while car insurance for ICE vehicles increased by only 13% during the same time period.
Electric Shock: EVs Cost 23% More to Insure Than Gas-Powered Vehicles | Inurify
Electric vehicle owners may spend less on fuel for their vehicles, but they pay more for car insurance — a lot more.
insurify.com
