Electric vehicles are trending. If you are thinking about purchasing one, here are some things to consider.
The Future of the Electric Car
In 2020, Governor Newsom announced that California would be phasing out gasoline-powered vehicles in favor of electric ones. By 2035, all new cars and passenger trucks sold in California will be zero-emission vehicles. Governor Newsom says, “This is the most impactful step our state can take to fight climate change.”
President Biden has also proven to be a supporter of electric vehicles. According to Car and Driver, Biden’s American Jobs Plan includes $174 billion dedicated to promoting electric vehicles and EV charging stations.
Do Insurance Companies Cover Electric Vehicles?
Before you buy an electric vehicle, it is smart to make sure you will have the resources you need. In addition to scouting out the electric vehicle charging stations in your area, it makes sense to think about insurance coverage needed for these types of vehicles as well.
The biggest question to ask your agent: Does your auto insurance policy cover a power surge while your vehicle is recharging?
The Cost of Owning and Insuring Electric Cars
Electric vehicles are seen as expensive – for good reason. The National Resources Defense Council says that the average sticker price for an electric vehicle is about $19,000 higher than the average sticker price for a gas-powered vehicle.
Because electric vehicles are expensive to own – and expensive to repair – the cost of insuring electric vehicles can also be expensive. According to Self, annual car insurance premiums for electric vehicles on average will be far more expensive to insure when compared to gasoline-fueled vehicles.
But it is not all bad news. People who own electric vehicles can catch a break when it comes to fuel costs. The National Resources Defense Council says the exact savings will depend on several factors, including the cost of gas and electricity in your area.
Even better, the cost of electric vehicles is expected to drop in the coming years as batteries become cheaper. According to Fast Company, the price of electric vehicles has fallen by 89% in the last decade. In a few more years, electric vehicles might cost the same as gasoline-powered vehicles.
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