Is car insurance more expensive when you own an electric car?
Before deciding to opt for the purchase of an electric vehicle, this is a parameter that must be considered. Especially since auto insurance prices have gone up.
With the development of sales of electric cars (for the first time, in September, their sales exceeded diesel cars), insurance companies are adapting their offers.
And so are their prices. But is the insurance cost more important for an electric car than a thermal car? Decryption.
Lower prices for electric
In its latest study, published in early December, online insurance comparator Assurland.com provides a preliminary response. “Driving an electric car is financially attractive. The price of car insurance is, in fact, 12% lower than usual”, can we read.
“In general, insurance prices are lower for an electric car because the experience of loss is less. You cover less distance with an electric car than with a thermal one. There are fewer long journeys , where there is more risk. And, inevitably , with an impact on costs,” Cédric Ménager, general manager of Furets.com, confirmed another competitor.
Why is electricity cheaper?
At the Fédération France Assureurs, which brings together all the insurance and reinsurance companies operating in France (247 in total), a first explanation was advanced. “At the moment, there aren’t really any statistics available about insurance for electric cars, because there aren’t enough denials of claims”, we explain.
But we offer an analysis: “The risks are different between an electric car and a thermal car. The electric is like a big mobile phone, with the risk of burning the batteries. There is always the risk of spilling fire if the car is parked in a car park. But after that, it all depends on the commercial policy of each insurance company”.
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For Assurland.com, “the elimination of TSCA (the special tax on insurance contracts, editor’s note) for electric vehicles explains this difference in particular”. The level of taxes, in fact, is not the same. “Taxes amounting to 33% on civil liability and 18% on damage guarantees, the impact on contributions is significant”.
A proposal that is however only valid “for electric vehicles purchased between 2021 and 2023”. It will also be noted that “there are insurers who have applied additional commercial offers for this type of vehicle”. However, there are some nuances. Thus, high-end Tesla cars remain among the most expensive to insure: €915 on average, according to Assurland.com. Even the cost “nevertheless fell by 11% in two years”.
What are the price averages?
According to Cédric Ménager, “for third-party insurance, it is necessary to count, in 2021, on average, 405 € for an electric vehicle, against 534 € for a thermal”. Same difference when opting for all-risk insurance. “It is 670 € for a thermal vehicle against 823 € for a thermal”. A favorable difference, therefore, for the electric.
But the general manager of Furets.com warns: “we have to put things in perspective, because an electric car costs more than a thermal one”. The premium “varies according to the value of the vehicle: the higher the price, the higher the insurance”.
What’s the main thing you should watch?
For the boss of Furets.com, regarding electric vehicles, “it is important to carefully study the guarantees of assistance, in case of breakdown, especially during recharging”. There are “various guarantees, such as 0 kilometer assistance, which allow troubleshooting at home.”
Car insurance will increase in 2023
According to Cédric Ménager, managing director of Furets.com, “car insurance should increase by 3% to 5% in January 2023, due to the increase in claims after Covid”. According to the UFC-Que Choisir association, the increase should be between “2% and 3%”. The reason ? “The rapid sophistication of cars and the current situation explain, in large part, why, again, it will be more expensive”. While it has been stable since 2020, it increased by 3% in 2022, according to Assurland.com, rising, on average, from €611 last year to €630 this year.