Hiring Electric Vehicles on Your Holiday – Tips to Keep in Mind (2024)

Here is all you need to know about travelling on a budget and keeping your vacation cost as minimal as possible without compromising the safety and fun of travelling the world.

Whether you’re in the US or in Australia, there’s a growing percentage of electric vehicles (EVs) roaming public highways and motorways across the country. And it’s not hard to see why.

From their environmentally friendly, emission-less nature to their high-tech and luxurious dashboard, electric vehicles are the cars of the future. They feature an array of new-generation technological feats that revolutionise how we travel from place to place.

If you own a standard gas-powered car and are looking to switch to an electric vehicle, you’re making a good choice in future-proofing your mode of transport. Having said that, don’t expect for a second that the driving mechanisms and all the other surrounding elements will stay the same.

Electric vehicles differ vastly from their gas counterparts, and yes, car insurance companies take into account these differences when considering the coverage, costs, and risks associated with the vehicle.

Understanding these differences can help you insure your car effectively. Let’s dive into the key factors that influence how EVs are insured and what you should keep in mind when insuring your electric car.

Is Car Insurance Necessary for EV Owners?

Car insurance is a legal requirement for all vehicle owners. Depending on the state where you bought your vehicle, this insurance may come as part of the vehicle registration package or be something you have to buy separately. Check this before you start planning a road trip.

In Australia, the most basic, mandatory insurance is called compulsory third-party insurance, or CTP insurance. This compulsory insurance provides financial protection against third-person liabilities and injuries, particularly medical costs, rehab costs, and ongoing care costs.

This form of insurance is necessary for both gas and electric car owners. The coverage remains the same in the most basic policy; however, if you opt for more comprehensive insurance for your electric vehicle, you’ll have access to more EV-specific perks in your insurance plan.

Let’s explore these differences in a more detailed light.

Key Differences Between EV Insurance and Traditional Car Insurance

For the most part, EVs and car insurance work similarly to one another in the sense that they provide financial protection in case your car ends up in an accident. The extent of this coverage depends on the legal limit and the contract you have signed with your insurer.

The nature of the insurance is largely the same. That said, there are a few notable differences that you’ll be exposed to when opting for an EV insurance plan over a standard insurance plan.

These include the following:

1. Cost: An electric vehicle, on average, costs more than a standard gas car. This applies to its car parts, maintenance, and repair fees. Considering that, it’s not difficult to understand why insuring an EV will cost more than insuring a gas car.
2. Coverage for EV parts: Electric vehicles run on batteries and charging sets, which work differently when compared to the gas car’s combustible engine and fuel tank. EVs are also rarer than gas cars, meaning the supply of qualified technicians and parts is relatively low, leading to higher procurement and repair costs.
3. Inspection and proper disposal of EV parts: EV car insurance also entitles car owners to free or discounted assessments, diagnostics, and repair of their vehicles when needed. It also provides free disposal (or recycling) services for old car parts that have been replaced.
4. Additional coverage on EV-specific risks: An electric car has a minuscule amount of risks that gas-powered cars may not have. For instance, an EV can suffer from battery failure on the road. They can also face electric fires due to their lithium-ion batteries. Self-driving mechanisms may also fail, which can pose a significant hazard to passengers. Policies may cover these specific instances.
5. Warranties: EV car owners also get access to warranties for their batteries as well as battery replacement services. This can come in handy if the battery starts to malfunction or degrade earlier than its intended lifespan.

That said, these differences are only applicable if you purchase a comprehensive electric car insurance policy with these coverage options, such as ROLLiN’s electric vehicle insurance.

This will cost a higher premium than standalone CTP insurance, but it will protect you against a wider range of events, which can be beneficial for your financial welfare and peace of mind.

What Else Does EV Car Insurance Cover?

Besides covering EV parts and charging sets, comprehensive EV car insurance also covers nearly the entire breadth of car damages arising from road accidents. Of course, this will depend on the terms and conditions in your signed contract.

If you have picked up a comprehensive car insurance policy for your EV, these are some of the standard perks you are entitled to with your policy:

• Liability coverage: This protects against claims for bodily injury and property damage caused to third-party individuals during an accident.
• Collision coverage: Covers the cost of EV repairs and parts replacement if it is damaged amidst a vehicular collision or road impact.
• Comprehensive coverage: Provides protection against non-collision-related incidents, such as hailstorms, vandalism, fire, theft, or natural disasters.
• Personal injury protection: Covers medical expenses for you and your passengers in the event of an accident, regardless of the faultbearer.
• Roadside assistance: Grants you access to specialised services such as towing to the nearest charging station, flat tyre changes, and emergency charging.
• Uninsured/underinsured motorist coverage: Protects you if you’re involved in an accident with a driver who has insufficient or a lack of insurance.

Furthermore, depending on whether the car is registered under you or not, the insurer may also provide rental car reimbursement or new car reimbursement to provide additional financial protection in case the car is in the process of getting a payout due to an accident.

All these things are important to check, especially when you are planning a road trip and want to use EVs.

Are There Any Discounts for Insuring Electric Vehicles?

Since getting electric car insurance tends to cost more (although it’s steadily decreasing), even if using such a vehicle is more sustainable, there are government grants and discount schemes that help trim down costs.

For instance, your insurer may provide options for bundling EV insurance with other insurance policies they provide, such as life and health insurance. This can lower your total monthly insurance cost quite significantly.

Governments in Australia and the US also provide grants to encourage their citizens to consider a green lifestyle. For instance, many state governments provide tax credits and grants to residential and commercial property owners to help them set up EV infrastructure more affordably.

Other good ways to lower your insurance costs are by keeping a clean record and shopping around. A good driving profile hints to insurers that you’re a low-risk driver, which can help in lowering your monthly premiums.

Shopping around also helps you select the most cost-effective insurance plan that fits your needs.

Do you have any more tips to keep in mind when opting for electrical vehicles? Do let me know in the comments.