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.

Read Also:

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

What Is Car Leasing Anyways, And How Does It Work?

Put plainly and simply, car leasing gives people the option of getting a car with a smaller down payment and typically lower monthly payments for a set number of months with a set amount of mileage allowed during the time the customer has the vehicle. All of the variables listed there are what’s known as the “lease agreement”, which covers all the terms and conditions of the car. Leasing is an awesome option for drivers, but it’s one that unfortunately not a lot of people understand all that well, so this article will endeavor to explain how exactly leasing works, and how it can be a better alternative to buying. Leasing can be a better alternative than buying because it allows you to drive a higher-priced car – one that you would not be able to normally be able to afford – for affordable monthly payments. In most big Canadian cities, like Toronto, Vancouver or Halifax, someone can get a lease on a new car for a low price, drive that car for typically up to three years and then turn the car back in at the end of the lease term. Leasing is kind of like renting a vehicle, in that you do not own it and you will turn it back into the dealership at the end of the lease term. Another reason that leasing can be preferable to buying is that it allows customers to get a new vehicle at the end of each lease term (if they so choose) without risking negative equity on a trade-in (and thus incurring higher monthly payments for the new car that they get). Leasing can also include perks like having standard service included and having the ability to carry over your down payment from one lease to the next (provided you continue to lease with the same dealership). Leasing has also become very popular with people that don’t necessarily drive a lot. Since leases come with a set amount of mileage (and penalties for going over the mileage) people that live in cities or close to work can take advantage of the lower lease prices for lower mileage lease options. Here in Canada, where there are lots of car dealership options, many dealerships offer perks to returning lease customers, to keep them from going to a different dealership, so it is a good idea to look at a dealership’s returning lessee offers to see if they are a good fit before entering into the initial lease agreement. These are certain small considerations you can learn more about over here at the AUTO ONE Group Blog which does a pretty comprehensive job detailing leases. Leasing is a great option for anyone looking to get a new car but doesn’t want to get roped into the large down payment and protracted loan payments associated with buying. If you live in the city here in Canada, it’s worth taking the time to seek out loan options on cars. Read Also : 5 Tips To Safeguard Your Home From Intruders 5 Signs Your Car Needs A Tune-Up Choosing The Right Anti-Theft Devices For Your Car In Houston TX

How Car Leasing Works And What To Expect

Buying a car ensures access to the vehicle at all times, but not everyone can incorporate this hefty purchase into their financial plans. In that case, you always have the alternative to lease a car, meaning you’ll only have to pay for the time you drive it before returning it to the company when the lease’s terms end. Car leasing has gained popularity in recent years, with statistics showing that around one-fifth of new cars in America were leased in 2022. If you’re considering renting a vehicle for the first time, keep reading as we delve into everything you need to know about the process. What is Car Leasing? When you opt for vehicle leasing, you sign an agreement or similar documents with the car dealer or company to rent a car for the mentioned term (usually some years). You’ll have to return the vehicle as the term ends, and you can’t claim ownership over it. Most individuals pick leasing over buying a vehicle because they get to pay less cash out-of-pocket, gain peace of mind due to the maintenance coverage and manufacturer warranty, and secure monthly payments. Additionally, if you prefer enjoying the latest technology or driving the newest models, a car lease enables you not to be bound to only one vehicle or worry about selling it. Keep in mind that you have to stay below or at the mileage limit stated in your lease agreement; if you exceed it, you might be charged excess mileage penalties when you return the car. How Does it Work? If you wish to lease a car, there might be a requirement for you to sign the lease agreement outlining the conditions and terms of the lending arrangement. The lease agreement typically includes the monthly payments you’ll make, the duration of how long you’ll keep the car, and mileage limits. Any fees such as the acquisition fee, excess wear and use, disposition fee, applicable termination fees, and other end-of-term charges should also be specified. We recommend researching which car lease fees to avoid so you’re not subjected to extra charges at the end of your lease term. Look out for information regarding use, wear, and maintenance standards within the lease agreement and check whether your lessor provides the option to purchase the car once the term ends. You may be able to buy the vehicle, return it, or extend your lease, depending on your contract’s terms and conditions. Purchasing your leased vehicle can be influenced by several factors, such as your budget, the car’s performance, and the vehicle’s market value compared to the purchase option price. It is a good deal to consider If the purchase option price costs less or is equal to the market value. How Much Does it Cost? The cost of leasing a vehicle depends on how long you plan on leasing it and the type of car you want to rent. It’s common knowledge that the shorter the lease period and the more expensive the vehicle, the higher the monthly payment. In contrast, a longer lease period and a cheaper car will result in you paying reduced monthly payments. Rather than paying for the car’s entire value, leasing enables your monthly payments to cover the rent, taxes, and the vehicle’s depreciation over the lease term. As you don’t have to finance the purchase price, your payment will likely be much lower. Mistakes to Avoid When Leasing a Car In this section, we’ll explain some things to avoid during the car lease process: 1. Don’t Pay Too Much Up Front While car dealers advertise low monthly lease payments, you might need to pay several thousand dollars to cover a portion of the total lease in advance to meet the affordable payment term. If the car is stolen or wrecked within the first few months, your insurance company is responsible for reimbursing the car’s value to the leasing company. However, it is unlikely that your down payment will be reimbursed. Not only will you lose the car, but you will also experience a monetary loss. Depositing no more than $2,000 upfront is recommended for car leasing. In fact, it even makes sense to put nothing down and pay everything in the monthly lease payment if this arrangement works better for you. 2. Invest in Gap Insurance Gap insurance is the deduction from the car’s value of what you are left to owe on your lease. If you plan on leasing your car, purchasing gap insurance is in the best interest of yours. Suppose your contract enables you to buy the car for $15,000 at the lease’s end, but you damage it before the lease expires. In that case, your insurance company will pay the dealership the car’s current market value. With gap insurance, this difference is covered. Most leases include gap insurance, and the dealer might offer to sell you one, but you’ll likely find cheaper policy options with traditional insurance companies. This small investment is worth the cost and will sort you out if something goes wrong with the vehicle. 3. Don’t Lease the Car for Too Long Ensure your offered lease period is shorter than or matches the car’s warranty period. Different manufacturers offer different warranties, but most generally last up to 36,000 miles or three years. You’ll have to invest in an extended warranty if you decide to keep it for a longer period and to avoid paying for the ensuing repair and maintenance costs in addition to the monthly lease payments. Rather than leasing the vehicle for an extended period, buying the car is better as you might drive it for several years without having to fret over the monthly payments. List down the pros and cons of buying a car vs. leasing it in the long term, and pick the option that saves you more money in the long run. Endnote Leasing a car entails borrowing one rather than buying a new or used vehicle, including an in-depth deal with the leasing company or dealer. There are various factors to consider before you sign off on this long-term commitment, so do your homework, run the numbers, and shop around to depict whether leasing is right for you. As is the case with any financing transaction, a high credit score will help you secure a lower interest rate on your leased car. Read Also: 5 Different Types of Car Accident Claim Knowing Your Vehicle: 5 Maintenance Tips for Porsche Owners Used Cars In Tucson Offer You The Best Range Of Driving Options

How Many Wheels Are In The World? – Are You Excited To Know?

Have you ever wondered how many wheels are there in the world? The first answer that will come to the fore is that there are actually plenty of wheels, which are infinite in number. However, in this article, we will look at this interesting question a bit differently and find out how many wheels are in the world in particular. With the Automotive Industry growing in leaps and bounds every year, the number of wheels depends upon the large number of vehicles being produced. Estimations have speculated that the number of wheels could be anywhere around 37 billion globally. Furthermore, in this article, you will also know why this question is there in the first place and what is the motivation behind finding out how many wheels exist in the world. You will also know about the fact why many people want to know how many wheels are there in the world estimate, as well as the views of the people. How Many Wheels Are In The World Total? – General Background Many users on the internet and social media (Twitter in particular) organized a popular poll, which was mainly about whether there are more doors or more wheels in the world. Hence, there were two different opinions from different users, and the reasons that people came up with were also interesting and, in some cases, extremely funny. On the one hand, many people were of the opinion that there are more doors in the world since there are many buildings and a single building has several doors. On the other hand, others claimed that since there are too many vehicles in the world, the number of wheels outnumbers the doors. Many people from around the world participated in the poll, and many people enjoyed the answers on the poll. The poll was featured in many countries, including the US, Canada, Australia, the UK, Ireland, and many more. The person who started this poll is Ryan Nixon. According to him, he found similar questions in Quora, from where he took the idea. According to Ryan, the question he found on Quora is, “If you could have one superpower, what would it be?” To answer the question, Ryan replied, “The ability to know the answer to any question I wanted.” This is how he found the idea of asking the question to people on the internet. Although it may sound strange to you, this is actually how the poll started and got popular in no time. More Doors Or More Wheels – What About The Post? Image Source: static.tweaktown.com Ryan Nixon posted the poll on March 5, 2022, on his Twitter account with the Twitter ID @NewYorkNixon. In the poll, he posted, “My mates and I are having the STUPIDEST debate...And I am here for it. Do you think there are more doors or wheels in the world?” As of February 22, 2023, we found that there are 223,347 votes. The final results are already out. The poll results were close, as 53.6% of people voted for more wheels, while 46.4% of people voted for more doors. There are 4823 retweets of the post and 19,200 likes on the post. Furthermore, 4414 people quoted the tweet. From the moment Ryan posted the tweet, it went viral in no time. Within three days, the post was one of the most viewed on the internet. Many experts are of the opinion that the reason behind the post being popular is that it was truly unique, and different people have different opinions about the post. Additionally, the post got popular quite fast on Facebook, Reddit, and other social platforms as well. What People Are Saying About The Doors Vs. Wheel Post? Image Source: media13.s-nbcnews.com You must have already understood that the post was unique and got popular due to it being interesting and funny at the same time. This is because hardly any people think about the number of doors and wheels in their own houses and cars, let alone the world. The funny part about the post is the way how many people came together to vote on the poll and have a debate in the comment section of the post. The question was, although simple, it was intriguing as well. For example, one person even commented, “Who is voting doors??? There’s wheels on everything. I have wheels on my garment rack, makeup storage holder, rubbish bin. It’s definitely wheels.” In return, Ryan Nixon replied, “You have more wheels in your house than doors? Think about cupboards, the pantry etc. Think about how many doors there would be in something like an apartment building or hotel...” Such conversations and opinions made the post extremely interesting. Some of the other comments that added fuel to the fire are: “Very solidly wheels. All cars have 4 wheels but 2-4 doors. An average home might have 6-10 doors but it also has 3 suitcases with 6-12 wheels. A collection of toy cars might have 400 wheels.” “How many suitcases with wheels on have you got in your house? I’ve got eight. That’s 32 wheels just there.” “Doors. Four door cars and trucks nullify themselves. All ships have doors, no wheels. All buildings have doors, no wheels. Doors.” “Doors by far. Most things with wheels have at least a 2:1 door-wheel ratio, and then you have all the other doors in the world.” “In my household there are 29 doors including fridge, cupboards, washing machine, tumble dryer and car. Got 4 wheels on my car and the hamster has a wheel, can’t think of any more wheels I’m saying doors." "Using the ideology that wheels are only for vehicles and doors only count if they can be walked through. Think it’s quite clear that doors win. Let me know if I’ve missed anything major or something needs explaining.” "Think it’s quite clear that doors win. Let me know if I’ve missed anything major or if something needs explaining.” "Doors. Four door cars and trucks nullify themselves. All ships have doors, no wheels. All buildings have doors, no wheels. Doors." "Easily doors There's double the number of homes in the world than there are other types of buildings too, eg shops, businesses etc Then on top of that, most vehicles have many doors too," "Must be wheel. Wheels is one of the earliest human inventions. Not only in vehicles, but also in rollerblades, suitcases, chairs, etc. Wheels also made each day more than doors." "Just to confuse this debate do you mean EVER or NOW? as this very much alters my answer. Also, is a broken door or wheel still a door or wheel? I need some rules here." "You have ruined my life, I've lost sleep over this." "This has sent me into a spiral and I can't escape it." What Is The Exact Answer To The Question? In every way, it is very hard to find out the exact number of wheels or doors. If, for example, you think about only cars, you have to consider it has four wheels and at least two doors. There are wheels in other vehicles as well. Furthermore, there are so many doors in houses, furniture, etc. On the other hand, there are also wheels in toys like Hot Wheels and Legos. Realistically speaking, the numbers are just too much for a person to count, as they are infinite. Hence, we will not be able to give you even a close idea. How Many Lego Wheels Are There In The World? Image Source: m.media-amazon.com In answer to how many Lego wheels there are in the world, you will need to estimate the number of car toys Lego produces. In a year, almost 17 billion toy cars are produced. Lego has sold approximately 6 billion wheels until now. As per a 2010 report, we found that Lego produces 318 million tires every year. Despite all these data, it is still hard to find out the number of wheels in this case too. Summing Up It is really hard to find how many wheels are in the world or even how many doors there are. Who knows! There can be billions of wheels and doors in the world. However, the best part about the question is that it is interesting and unique, and the post from where the question is inspired was a head-turner. Moreover, the post was funny, and the results were even funnier. Read Also: How Long Can You Go Without An Oil Change? What Type Of Vehicle Is Ideal For Off-Road Driving? How To Choose The Best Wheels And Tires For Your Vehicle?

Car Insurance For Electric Vehicles Explained

Cost and Providers: