Car Insurance For Electric Vehicles Explained

20 November 2018

You’ve taken the leap into electric vehicles, leaving behind petrol fumes and high bills at the forecourt lured by the prospect of low running costs, no vehicle tax, and low emissions. Or maybe you’re just considering ditching fuel tanks for plugs and are doing the maths, calculating whether the savings you can rack up with an EV, from the government’s rebate to lower servicing charges, can offset the higher initial outlay.

While electric vehicles are exempt from vehicle tax and from charges in London’s congestion zone, and you can rack up discounts on parking permits from many councils, you can’t avoid some of the standard costs of owning a vehicle. A major, unavoidable expense is for car insurance, which is a legal requirement for any vehicle using or even parked on public roads in the UK. If you’ve never sought out or arranged insurance for an electric vehicle, you might be baffled about where to start.

Cost and Providers:

You may heard electric vehicles are significantly more expensive to insure and that you’ll need to see out a specialist provider. It’s true that the market for electric vehicles, and therefore for insurance for electric vehicles, is still in its infancy. As of the end of September 2018, there are just 178,000 plug-in vehicles (including fully electric vehicles and plug-in hybrids) registered in the UK, out of a total of 37.3m vehicles on our roads. But the number is rising quickly: there were 5,000 new registrations of plug-in vehicles each month of 2018, while in 2014 just 400 new plug-in vehicles were being driven off lots.

With the increasing uptake of EVs and hybrids, especially in the run up to the 2040 ban on petrol and diesel vehicles, the cost and complication of insuring them will fall. Electric vehicle insurance policies will become standard fare from mainstream insurers.

Today, the higher purchase price of EVs drives up insurance premiums for them, as insurers need to consider to cost of replacing your vehicle if it’s stolen or damaged beyond repair.

But even now you might find insuring an electric vehicle might be comparable to, or even cheaper, than insuring a petrol- or diesel-powered car, owing to the small size and less powerful engines on EVs and the discounts some insurers can give you for driving environmentally-friendly cars.

However, the process of obtaining insurance quotes and policies for an electric vehicle is different than that for EVs and a rundown will be helpful as you start your electrically-powered journey.

What Impacts Cost of Insurance for Electric Vehicles:

You’re probably familiar with the features of a standard vehicle that can inflate, or reduce, your monthly premiums for its insurance, including its car insurance group, the size of its engine, and purchase price. For insuring electric vehicles, there’s a new calculus, accounting for who owns the battery and the risk posed by (not kidding) power cables.

leased batteries:

Some EV manufacturers like Renault and Clio offer motorists the option of buying the vehicle outright but leasing its battery, with a monthly fee and mileage agreement. These arrangements spare you the steep cost of replacing batteries when they lose functionality after a few years. But if you’re leasing the battery, you’ll need to inform your insurer when obtaining quotes, as a leased battery will affect who needs to be paid if your electric vehicle is written off. Additionally, some policies may not cover leased batteries.

power cables and liability:

Much like your smartphone, your electric vehicle will need to be charged, just with a very big cord. If you’re charging in your driveway or garage, you won’t have to worry about the cord trailing large distances. But if you’re charging your vehicle while it’s parked on the street or at a public charging station, that cord could pose a tripping hazard. When obtaining an insurance policy for your electric vehicle, you should ensure it provides enough liability cover to protect you if a member of the public face-plants over your cable.

fires from at-home charging:

If your electric vehicle or cable fire while plugged in in your driveway or garage you might wonder which insurance policy will pay out: your home insurance policy or the one for your car. That ultimately depends on where the fire originates, but the risk of an electric fault within your vehicle causing a fire that then destroys you home can push up premiums for car insurance for EVs.

green discounts:

Some insurers will offer discounts of up to 5% on your annual premiums as a reward for you driving an environmentally-friendly car. Others will make charitable donations to green causes in your name from your premiums or plant a certain number of trees.

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5 Signs Your Car Needs a Tune Up

Owning a car is like being the parent of a small child when it comes to maintenance. There may be something going on, but the child is not able to tell us. Like babies, cars don't speak English. We know toddlers can upchuck some pretty uncommon-looking stuff. Then, words are no longer necessary. And, your vehicle can cough up troubles from its insides, too. Warning lights, sputtering, and sticky shifting may tell us there's a problem. And, there are other signs such as uneven tire wear. This may mean suspension problems, according to Mick's Automotive experts. Cars and SUV's need more maintenance than ever. This is thanks to modern electronics and computers. So, a basic tune-up evolves with each new model. But, the signs your car needs a tune-up does not require a software engineer. We learn with time what our kids, and our cars, need. Learning to recognize symptoms that you need a mechanic is easier than most people think. Here's when it's time to get a tune-up for your car: It Doesn't Want to Start : On icy mornings, both you and your car can be slow to get going. But, if your car is doing the same on warm mornings or after warming up on a cold day, there is a problem. It may need a few adjustments. Slow starts could signal a fuel line issue or a simple battery replacement. Of course, on the other end of the spectrum may be a new starter. But, none of these problems will go away. At some point, it won't start at all. And, you will likely kick yourself (as you are stranded) if a simple tune-up is an answer. It Stalls Out at Stops : Stalls are not only annoying but can be dangerous. Pooping out in the middle of an intersection is never good. You're a sitting duck. You'll be lucky if anyone will stop to push you to safety. Merging into moving traffic, then stalling, can leave you vulnerable, too. Loss of power is a sign your car is not getting adequate fuel or oxygen. Or both. One of the most obvious signs of needing a tune-up on your car is when it stops too often. Powerlessness could signal it needs a new air filter, fuel line cleaning, or spark plugs. If your car loses power for too long, you'll pay a hefty price. Not just for repairs, but your fuel efficiency is tanking, also. In this case, a thorough tune-up starts paying you back right away. There's a High-Pitched Squeal From Under the Hood : Both annoying and embarrassing, the piercing noise may have a few causes. When you get a tune-up, the mechanic will check belts, hoses, and fluids. If your last checks were a while back, your car is going to continue to screech at you until you bring it in. The culprit may be low steering fluid or a belt that is past its end date. If the noise is present as you drive, it may be a tire needing balancing. All these are easy fixes. A more complicated problem may be the CV joint objecting as it wears out. Either way, there's no louder sign of when to get a tune-up for your car. Gas Mileage Has Gone Way Down : Frequent fill-ups may not be the clearest sign your car needs help. But, if your mileage has gone way below average, there is something wrong. If you have a teenager at home, check for late-night joy rides. If not, then have a mechanic do a routine tune-up and check for more severe problems. Keep in mind that a stuck brake pad may be the issue. Or, low tire pressure. If the abnormal mileage is a sudden occurrence, it is likely something simple. It Hesitates When Passing Other Cars : No acceleration when you need it can be yet another dangerous problem. If you attempt to pass and your car can't, other drivers get angry, too. You will get more than a hard stare in some cases. And, there may be a few different reasons. If it is an issue of power, then your car is telling you something is missing. It is likely a lack of fuel, oxygen, or electrical energy. With regular tune-ups, this should not happen. The other issue may well be the transmission. If you find your car does not have a smooth shift or hesitates before going into high gear, something's wrong. As your car's engine needs a regular check, so do transmissions. There are components like fluid, screens, and filters. Any of these may need attention. The longer you wait, the more parts (and cash) you may need. Read the Owner's Manual for Signs Your Car Needs a Tune-Up : If you don't have your owner's manual, get one. This book is the best guide for telling what parts need upgrades and when. Newer models do not need a tune-up until they reach 100,000 miles. Older models need one more often. And, for significant work to keep a transmission at its best, the manual offers a timeline. We all know people whose car has a couple of hundred thousand miles on it, and it runs like a top. Chances are their maintenance records, and owner's manual is as clean as their engine. Looking For More Information? We have great stuff on everything from signs your car needs a tune-up to health and fitness. Check out our blog for more information that makes your life easier. Have an idea or input on a blog? Contact us here. We love hearing from our readers! Read Also : Why The Vauxhall Insignia Should Be Your Next Car Choosing The Right Anti-Theft Devices For Your Car In Houston TX 5 Benefits Of Car Title Loans And One Important Warning

How Much Compensation Can You Expect Run Accident Claims

A hit and run accident is one in which a driver crashes into a pedestrian, hits another car, or crashes onto private property and then flees the scene without identifying himself or offering any emergency assistance. According to NHTSA, eleven out of a hundred traffic accidents are hit and run. Of this number, 4.3 percent leads to death. Consequences of Fleeing the Scene of the Accident: Depending on the type of injuries or damage caused in an accident, the penalties or charges for fleeing the scene of crime usually ranges from a felony to a misdemeanor. If you hit another person and had a reason to believe that they harmed as a result, then you could subject yourself to a jail term for not stopping to help them. A criminal conviction may be utilized as extra evidence in a civil case based on that particular accident. Usually, the civil case is placed on hold while the criminal case is ongoing, but once a conviction has been reached, then that is a powerful evidence of liability which could result in a faster resolution in a civil action. Therefore, a criminal conviction can go a long way in helping you to get the compensation you deserve for the damages you underwent during a hit and run accident. Handling Your Insurance Firm: If you are residing in a no-fault insurance state, it could be insignificant to identify or locate a hit and run driver because your insurer compensates you irrespective of who is at fault. In case you live in a state with traditional liability and carry uninsured or underinsured insurance, insurance firms should cover you for damages up to your policy’s limit. On the other hand, if you lack the UIM coverage, then you are most likely going to face serious problems recovering damages. You can also take a look at your homeowner’s policy. There may be a provision that covers the extraneous events. If your insurance cannot cover the damages, then you need to continue your search for the faulty driver. You also need to remember that every state has a statute of limitation and this may range from 2 to 5 years. If by the end of this period you don’t find the driver and file a lawsuit, then you are out of luck. The Limits of Your Policy: The value of your claim often depends on the amount of coverage bought. If you bought $200,000 in uninsured motorist coverage, then you have a maximum recovery of similar value. Buying low policy of limits less than $100,000 is a good thing, but this amount is not as much as it appears since hospital bills could skyrocket surpassing that limit. To be on the safe side, you should have policy limits of at least $500,000 in underinsured or uninsured motorist coverage. Final Word: In most states, the most common types of compensation for hit and run scenarios may be in the form of the uninsured/underinsured claim. It is therefore important to have the right amount of coverage to avoid getting stuck in case of a hit and run scenario. Read Also: Racing Games And Accidents; Is There A Link? Why You Need Classic Car Insurance?

5 Benefits of Car Title Loans and One Important Warning

Benefits of car title loans include ease, speed, and lack of influence from your credit score to name a few. However, one must remember that ‘easy cash’ is never truly easy and treat this method of financing as an extreme case aid that it is. 5 Most Important Benefits of Car Title Loans : 1. A quick source of cash : The process of taking out a car title loan is so simple, you’ll have money on hand within a few hours. You won’t even need to collect any specialized paperwork to apply. The majority of lenders only require a simple form that you can complete in under 10 minutes. 2. Your credit score is irrelevant : Any car owner can get this type of loan as long as their vehicle is worth more than the loan amount and they have a source of income. Your credit score won’t even be asked when applying for auto title loans. 3. Your car stays with you : One of the most important benefits of car title loans is that you don’t have to give up your car after taking one. That’s why this financing method is so great as you won’t be deprived of an asset that you need to make money for repaying the debt. Note that you can even take out this loan in order to pay for car repairs. 4. Interest rates are lower than payday loans : The majority of payday loans and various cash advances that are often used as a quick source of cash have very ‘unfriendly’ terms. That’s because those financing options are extremely risky for the lender as they literally give you money for free. You can get some idea of how ‘not cheap;’ those loans are from the PEW Charitable Trusts statistics. Car title loans, on the other hand, have default collateral, which is your vehicle. This enables the lenders to cut down the interest rates and make the overall terms more favorable. 5. Flexible payback schemes : Paying off a car title loan will be easier than many other quick cash options because these plans are very flexible. Due to the collateral, lenders feel more secure and therefore are open to negotiations. You can definitely hope to get a long-term installment plan adjusted to your personal needs. One Warning About Auto Title Loans : First of all, you need to understand that this warning does not negate the benefits of car title loans in any way. Instead, like any warning, it’s here to remind you not to abuse the good thing that this financing offers. It’ might be easy to fall into the trap of ‘easy money’ illusion and take out a greater loan than you are able to handle. To prevent this, you should consider your reasons very carefully. Do you need cash badly? Is your situation an emergency? When will you be able to get the money needed to pay off the debt? Take out this loan only if your answer to the first two questions is ‘yes’. The last one is necessary to plan out the best payback scheme for your circumstances. Read More : Invest In A New Car, Without A Financial Liability How To Get An Auto Loan At A Low-Interest Rate How To Get A Loan On A Day With Bad Credit?

Car Insurance For Electric Vehicles Explained

Cost and Providers: