House Insurance, Auto Insurance, & Electric Vehicles
If you have filled up your tank recently, then I am sure you have momentarily considered an electric vehicle. Even if you did not consider a full electric vehicle, I’m sure you pondered hybrid options. Gas prices skyrocketed at the beginning of the year and have only gone higher since. Many are trying to figure out how to save money at the pump, whether that means driving less or buying electric vehicles. If you are considering an electric vehicle to save money on gas, you should talk to your insurance broker or insurance agent. Believe it or not, but buying an electric vehicle could affect your homeowners insurance and your car insurance. How is that possible? The insurance professionals at Streamline Insurance are here to discuss why electric vehicles impact multiple insurance policies. Here’s what you should know about your house insurance and car insurance …
The Rising Popularity of Electric Vehicles
It is becoming impossible to deny that electric vehicles are increasing in popularity. In 2021, electric vehicle sales increased dramatically over their numbers from 2021. This was not only true for the United States but all over the world. On top of this, 2021 was the first year that electrical vehicle sales topped hybrid sales. Initially this might seem like some sorta slight against hybrid vehicles. It would be easy to assume that hybrid sales were trading off with electrical vehicle sales. However, the data does not support this notion. Although electric vehicle sales are outpacing hybrid vehicle sales, hybrid vehicles are still gaining in popularity. Hybrid vehicle sales increased 33 percent from 2020 to 2021. Basically, any vehicle that runs on something other than gas is gaining in popularity. Furthermore, nothing seems to be changing this trend. Why are electric vehicles becoming more popular?
Why Electric Vehicles are More Popular
Electric vehicles are becoming more popular for car buyers for a few multiple reasons, but many cite the economic benefits. As discussed above, EVs and hybrids are a great way to reduce the pain at the pump. On top of that, there are many federal incentives to encourage car buyers to select electric vehicles. Many states offer their own rebates or tax breaks for EVs or hybrid vehicles, such as California. Between rebates and other forms of tax breaks depending on the state or city you live in, many car buyers think it is too much to pass up on.
Electric vehicles are also becoming more popular because of social and cultural reasons. Some choose to buy an EV or hybrid vehicle because they believe it is an environmentally-conscious decision. Others think it is a statement about the future and innovation. That is one reason why popular EV maker Tesla has gained cult-like popularity amongst car buyers. Tesla enthusiasts love the aesthetics of the car and the statement that they think driving it makes. Quite simply, it makes sense that with as much as EVs are gaining in popularity there would be a lot of different reasons why that would be.
Homeowners Insurance and Car Insurance for Electric Vehicles
Insuring your electrical vehicles is a lot like getting car insurance for any other vehicle with a couple of differences. First, electric vehicles can have higher premiums. This is not because insurers have a bias against EVs. The reason auto insurance premiums can be higher is that EVs cost more than your average vehicle. When you think of it that way, it makes sense that EVs have higher average insurance premiums than the other average premiums of other vehicles.
The second difference actually has to do with house insurance. EVs require charging stations and many homeowners have them installed in their garage or in their driveway. Different states and insurers treat charging stations differently. More often than not, installing a charging station in your home will impact your homeowners insurance. Charging stations must be added to your policy. Or else damage to your charging station or damage from your charging station might not be covered by your homeowners insurance.
Final Thoughts
It is easy to understand why EVs and hybrids are becoming more popular. If gas prices remain at today’s levels, we will probably see even more car buyers turn to electric options. If you are considering an EV and want to know what that will mean for your homeowners insurance or car insurance, contact us. The insurance brokers at Streamline Insurance will answer all your questions and even give you a free quote. This will give you a chance to know exactly how buying an EV might affect your insurance policies.
