ARE LOW EMISSION CARS CHEAPER TO INSURE?

Insurance companies have categorised cars into groups that range from 1 to 50. When new car models come to the market, insurance providers assign them a rating based on several factors. These are repair costs, repair times, part prices, new car values, performance, safety features, bumpers, and security features.

A car in a low insurance group is cheaper to insure. The question remains: are low emission cars cheaper to insure? Because of their unique service needs, low-emission cars usually cost more to insure than traditional vehicles. However, it is essential to shop around and find the cheapest insurance rates for your low emission car.

Low emission vehicles, such as electric and hybrid cars are significantly changing the landscape of automobiles. Electric vehicles, for example, are more accessible and affordable to the average driver.

The strong network of charging stations allow drivers of low emission cars to travel long distances, making the concept of electric and hybrid cars more enticing. Anyway, here are a few reasons why low emission cars are more expensive to insure. Read on!

More Expensive

Low emission cars are relatively more expensive than traditional gas-powered vehicles. Although tax refunds make the initial price of low emission cars cheaper than other types of cars, insurance companies look at the replacement cost when determining insurance rates.

Like other cars, low emission cars base the replacement cost on the retail price suggested by the manufacturer. Research shows that low emission cars are 25% more expensive than gas-powered vehicles. So, this is more costs for insurance companies if you need to replace your low emission car.

Higher Repair Costs

Compared to gasoline cars, low emission hybrid or electric cars do not have many moving parts. However, it is very expensive to replace a low emission car’s part after an accident. Low emission cars will have reduced repair costs in the future, but now, they are more expensive.

The reason is that batteries, engine, and other high-tech parts are more expensive to replace. The other reason is that the lack of qualified and trained mechanics who can fix low emission cars efficiently.

An auto insurance policy often consists of collision coverage, which pays for the medical and car damage after an accident. When you pay the insurance deductible, you don’t need to pay for repairs.

However, if you have a low emission car, the insurance company may factor in higher repairing costs, which means you will pay higher monthly premiums. That’s why it is essential to have collision coverage; otherwise, you will pay for the repairs from your pocket after an accident. If you have financed a new low emission car, your car loan lender will require you to have collision coverage as part of your insurance policy.

More Prone To Damages

Many new models of low emission cars are smaller than traditional gas-powered cars. Research shows that smaller cars are more prone to damages after an accident, requiring more repairs.

According to the Insurance Institute for Highway Safety, heavier cars provides more protection to people than smaller, lighter cars. The reason is that most traditional cars have a long distance from the car’s front to the driver’s compartment, which protects him or her in frontal crashes.

Most new models of low emission cars are more prone to getting damages, which can lead to higher repair costs. That’s why insurance companies have set higher premium rates for low emission cars, including hybrid and electric cars.