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Buying an electric car: good car insurance is crucial

November 27, 2023

The wind in your hair, the gentle hum of an electric motor and at the same time knowing that you are contributing to a more sustainable world: this is what you can expect when you choose an electric car. Electric cars are gaining ground, and that is anything but incomprehensible. If you are also planning to purchase an electric car, you better pay close attention to car insurance. In any case, third-party insurance is a must, otherwise you will not be allowed on the road. But good hull insurance, a very complete car insurance policy that covers both civil liability and damage to your own car, is just as important, according to experts.

The complexity of an electric powertrain

An electric motor has fewer moving parts than an internal combustion engine. As a result, the engine wears out less quickly and this car generally lasts longer. On the other hand: technology is more sophisticated and repair costs are often higher. This is not an oil filter or timing belt replacement, but work on advanced electronics and battery packs. The cost of repairing or replacing a battery pack can be thousands of dollars.

If you cause an accident yourself, it is not covered by your third-party insurance. This is the mandatory insurance you must have if you put a car on the road. It is useful insurance, but it could be better. Therefore, it is advisable to opt for more comprehensive coverage that includes damage to your own vehicle, known as hull insurance. Additionally, a good roadside assistance insurance is recommended, as breakdowns are also often extra complex with electric cars.

Overall picture and the added value of security

It is no secret that the purchase price of an electric car is generally higher than conventional cars. Hull insurance covers not only the damage you cause to others, but also the damage to your own car. It does not matter whether the damage was caused by your own fault, weather conditions or collisions with stray animals. The premium is calculated based on the value of the vehicle, among other things.

When choosing hull insurance, it is particularly important to pay close attention to the depreciation policy. In fact, electric cars may depreciate differently than conventional cars. Some insurance policies offer an extra-long new-value policy, an arrangement where you are paid the full new-value of the car in the event of total loss or theft within a certain period of time after purchase. Other insurers use a modified depreciation policy. Talk to several auto insurance companies to compare options.

Battery damage is not just a scratch

In a collision, you quickly think of eye damage. However, with an electric car, the impact on the battery pack is a significant risk. The battery is the beating heart of your vehicle, and damage to it can lead to complex and costly repairs. In turn, a battery fire is very difficult to extinguish and can cause additional damage, such as a house fire. Good to know: the risk of a car fire is extra high with an EV during charging, something many people do at home. Therefore, it is advisable to pay attention to fire safety when installing a charging station. Moreover, it is a good idea to check with the building insurance company to see if these risks are adequately covered. Regardless, it is a good idea to report a new electric charging station to the insurance company.