How The Electric Car Could Change The Auto Insurance Industry


Back in 2008 when Tesla released the roadster, the first legally drivable electric car we would see the auto industry change forever. With high capacity batteries, sophisticated sensors and higher cost to repair, what will happen to your insurance premium if you make the purchase?

According to Marketplace reports, over 6 million electric cars were sold in 2021 – up 26 percent over the previous year. Bloomberg is reporting that by 2040, 50 percent of global passenger vehicles sales will come from electric cars. Still that would make-up for less than 33 percent of all vehicles on the road.

The most popular electric car is the Tesla Model 3, according to Kelley Blue Book. What most people do not know (if you are outside the world of Tesla) they actually have their own insurance agency, offering up competitive prices. A move that could actually impact other agencies across the board. There’s no sign of slowing down the autonomous vehicle.

According to 2021 Q1 reports out of Tesla they’re averaging only one accident for every 4.19 million miles driven. One could say that’s pretty good, on the other hand with only 1 in 250 EV on the road, is that even a comparable stat?

An article written by Policy Advice states insurance companies will be looking at all factors when considering cost. There are actually many positives here considering the decrease in accidents, hence it could lower premiums. On the downside there’s a huge threat for potential cyber attacks on the vehicle’s computer, and then you’ll have your basic technological errors. Other experts cite that electric vehicles are considered totaled more often than a gas powered vehicle.

If you are thinking about making the big purchase, you’ll have to ask yourself if it’s worth the investment. Right now with gas prices maybe you will want Tesla to “take the wheel”…

If you do decide to go electric, Banas Insurance can advise you on the right insurance coverage to get and make sure you are covered!!