Purchasing an electric car represents a larger investment than a combustion engine vehicle. However, running costs are generally lower. This includes propulsion energy, maintenance, and often insurance. Nevertheless, the financial advantage of insurance for electric vehicles may well diminish in the future.
How is the price of insurance for an electric car determined?
Insurance companies use complex algorithms to set rates. Several criteria are taken into account:
- Usage profile: Driving habits and distances traveled.
- Driving experience: The number of years of driving without an accident.
- Insurance history: Previous claims and insurance claims.
- Location of residence: The risks associated with the geographical area.
A crucial point is the cost of repairs, particularly in the event of battery damage, which often represents 40% of the purchase price of a new vehicle. Some electric cars also use aluminum bodies, which are lighter but more expensive to repair.
What is the average cost of insuring an electric car?
Calculations by the insurance comparison website Assurland.com show that in 2023, the average premium for a gasoline-powered car was €645 per year, compared to €563 for an electric car. This difference is partly explained by a specific tax exemption. This exemption from the special tax on insurance agreements (TSCA)
favors 100% electric vehicles. However, this exemption is expected to decrease gradually, leading to future premium increases. Assurland forecasts an increase of 3.5% to 4% in 2024, which will require budget adjustments for insuring an electric vehicle.
Why is electric car insurance cheaper?
Besides driving profiles, a significant financial advantage lies in the exemption from the TSCA (Tax on Commercial Vehicles) for electric vehicles. This tax measure, designed to promote clean energy, reduces the cost of third-party insurance by 20 to 25% and comprehensive insurance by 12 to 15%.
However, this exemption is scheduled to be phased out. Starting in 2024, owners of vehicles purchased in 2023 will already see this benefit reduced by half.
Is the battery of an electric car covered by car insurance?
Battery coverage depends on the chosen insurance policy. It is crucial to ensure that the policy covers this valuable component. The battery, which can cost thousands of euros, can be damaged even by a minor impact, rendering the vehicle unusable. Since battery replacement costs are very high, it is wise to check that your insurance policy includes this specific coverage. What type of electric car insurance should you choose, and what coverage should you get?
Most electric vehicle drivers opt for comprehensive insurance. This is a wise choice, given the high cost and value of newer vehicles. Here are some coverages to consider:
- Electrical breakdown assistance: Make sure the assistance covers breakdowns at 0 km and towing to a charging station.
- Theft and fire coverage: Batteries can be flammable. Good coverage is essential.
- Home charging point or station: Check that these are also covered in case of an electrical problem.
