Many car owners think about insurance in terms of the coverage they can afford. But for high-end cars, including electric and hybrid vehicles, often the key question is what kind of coverage does your special car need?
Electric and hybrid vehicles, as well as other high-end cars, require different kinds of care. That may mean changing private car insurance companies to make sure your policy gives you the protection your car needs if it’s damaged or stolen.
We’ll discuss tips on making sure electric, hybrid, and high-end cars get the policy with the most coverage for the best price.
What Are The Differences Between High-End, Electric, And Hybrid Vehicles?
All-electric vehicles (EVs), also referred to as battery electric vehicles, don’t have a traditional combustion engine that runs on fuel. They use electric motors powered by rechargeable batteries that need to be plugged into a special EV charging station.
Because hybrid electric vehicles have an internal combustion engine in addition to a battery-run electric motor, the way to charge the battery is a little different. Unlike full EVs, hybrid batteries cannot be plugged in to recharge them. Rather, hybrid battery power is regenerated through the vehicle’s combustion engine and braking system.
The term “high-end” is not a classification or type of electric vehicle per se. Any type of car, whether it runs on battery or fuel, can be termed high-end so long as it has luxury features.
Luxury vehicle features are more the basic extras, like stereo and entertainment systems or fancy tire rims. For consumers, luxury cars should have hi-tech performance capabilities (such as magnetic ride control, dynamic steering, and performance data recorders), expensive materials and fabrics used in interiors (such as mahogany trim, and leather and suede seats), and state-of-the-art safety features (such as lane automatic emergency braking, departure warning, and facial recognition software).
What Are High-End Electric And Hybrid Cars?
Tesla, arguably, is the most popular maker of electric and hybrid vehicles. The success of the electric and hybrid car industry is largely due to the invention of the lithium-ion battery in the 1980s. The lithium-ion battery gave electric cars the capability to handle highway and long-distance travel.
In the mid-to-late 2000s, the Tesla Roadster was the first highway production all-electric car to use lithium-ion battery cells. It was also the first production of an all-electric car that was able to travel more than 200 miles per charge.
Today, some would say that Tesla is responsible for eclectic vehicle popularity, but it’s no longer the only high-end electric/hybrid car game in town. More and more luxury carmaker brands, like Porsche, Audi, and Cadillac, are developing more all-electric cars models. The costs for electric vehicles vary, but if they come with high-tech, state-of-the-art, luxury features, they will be considered high-end cars.
Reportedly, by 2030, 32% of all U.S. cars sold in the U.S. will be fully electric. That means high-end fuel-alternative automobiles are here to stay. And as new technologies develop, they’ll continue to improve. For many new car buyers, the allure of high-end electric and hybrid cars is the combination of outstanding performance and lavish interiors with superb fuel economy.
Does Insurance Cost More For Electric And Hybrid Or Gas-Fueled Vehicles?
Generally, it costs more to insure electric and hybrid vehicles than it does comparable gas-fueled cars. Here are three reasons explaining why:
#1 – High Replacement Cost
Generally speaking, high-end cars cost more than standard cars, so logically, the higher the price of a car, the higher the costs to insure it.
#2 – High Repair Cost
Along the same lines, high-end cars often have expensive replacement parts. Electric and hybrid cars also typically require specialized mechanics to do the repairs, which can add to repair costs.
#3 – High Claim Risk
Insurance companies will always increase rates if they see an increased risk of claims. For electric vehicles, insurers see an increased risk for theft and accidents. Catalytic converter thefts from electric and hybrid cars are popular with car thieves. Also, because electric and hybrid cars are quieter on the road, that increases the risk of accidents with pedestrians, cyclists, and other cars, who may not have heard the car coming. Here you find the most reliable and best full coverage car insurance.
Despite the higher insurance cost for electric cars, many owners understand that the cost to insure electrics and hybrids is offset by fuel savings.
What Do Other Factors Determine Rates For Private Insurance On High-End Cars?
The high cost and risk of claims are just a few of the factors that affect rates. To determine rates, insurance companies look at factors such as age, education, gender, location, marital status, credit history, coverage, claim history and driving record.
When getting quotes for private insurance, ask what is used to calculate your rate. Look for a factor you can use to adjust your rate downward, like a safe driving record, anti-theft protection, or military service. Ask different insurers which high-end electric and hybrid cars are the cheapest to insure.
What’s The Best Coverage For High-End Electric And Hybrid Vehicles?
Most drivers have general liability coverage (GLC), regardless of the kind of car they drive, because almost all states have financial responsibility laws that require motorists to obtain it. Minimum GLC laws make sure that drivers are able to cover the cost of damages and injuries if they get into a car wreck.
But high-end car owners should opt for a policy with collision and comprehensive coverage in addition to GLC. A GLC policy will cover the damage to others, while collision and comprehensive policies cover damage to your own vehicle.
What’s The Difference Between Collision And Comprehensive Insurance?
Comprehensive and collision insurance covers different things.
Collision Insurance Coverage
As the name states, collision insurance covers damage to your car if it gets hit or hits something. Collision coverage only applies to damage caused by hitting a stationary inanimate object. It won’t cover your car if you hit a deer because animals are not inanimate.
Comprehensive Insurance Coverage
Collision insurance doesn’t cover damage from non-collision events like theft, vandalism, riots, fire, or weather events such as damage from snow, hail, and floods, but comprehensive insurance does.
Comprehensive insurance offers catch-all coverage for car damage not related to a collision. In case of a crash, your insurance company may or may not step in to help. If the accident was your fault, your insurers will probably have a lawyer defend you. But if you were in an accident and want to bring a claim for vehicle damage or injuries against the other driver, you will have to hire a vehicle accident attorney on your own because your insurance company probably won’t step in.
Is There Private Car Insurance For High-End Electric And Hybrid Cars?
Private car insurance offers better rates and programs than public car insurance. Most people insure their cars through private insurance.
What Is Private Car Insurance?
Private auto insurance just means free-market insurance not owned or controlled by the state, while public auto insurance companies are regulated by the government. The free-market insurance industry is highly competitive, which means car owners can negotiate deals and discounts when insuring their vehicles.
Why Is Private Car Insurance Best For High-End Cars?
Why do most car owners choose private insurance to insure their vehicles, including high-end electric and hybrid cars? One of the primary reasons is lower cost.
Some public auto insurance critics cite fixed deductibles, lack of multi-vehicle discounts, and poor customer service as reasons private insurance is best. Private car insurance companies compete in the open market to offer low rates, good customer service, and more coverage options.
Is There Private Car Insurance For High-End Electric And Hybrid Cars?
Yes, there are private car insurance companies for almost every type of car, even high-end cars like supercars or exotic automobiles. If you’re looking for a private car insurance company that specializes in high-end or electric vehicles, make sure they have great resources tailored to your type of vehicle. They often have a network of specialists like repair shops and appraisers that provide an added value to the insurance relationship.
Lauren Blair is a lawyer who writes for the car insurance site, CarInsuranceComparison.com. She has over 25 years of experience in litigation.
