Ever since the government announced the plans to stop the sale of internal combustion engine-powered cars by 2040, many people are starting to switch to hybrid and electric cars. Electric cars will be cheaper overall in the long run. However, there is another factor to consider – car insurance, as well as its yearly renewal. When it comes to insurance, is there a cost difference between an electric car and a petrol car? And how much of a difference is there between insuring an electric car and a petrol car? Here’s what we found out.
Electric vehicles (EVs) cost more to insure
Electric cars can cost more in insurance due to several logical reasons.
To start with, they’re more expensive outright. In general, EVs are more expensive to manufacture, and they also cost more in Singapore than their petrol counterparts. A general rule is if a car’s value is higher, it will be more expensive to insure. Petrol cars are no exception.
Despite the lower wear and tear of components, the cost to replace certain parts of the car should be considered, especially in accidents.
Certain electric components, such as batteries and motors, require special tools and training. Their body panels and bumpers may look different from petrol-powered models and items like these may not be readily available and must be shipped.
These factors are all taken into consideration. However, when it comes to vehicle insurance, there are other considerations. Your profile, driving experience, and No-Claims Discount (NCD) all play a role.
There are limited electric car insurance companies
There are only a few insurance companies that cover electric vehicles. Since there are fewer options, it is more difficult for consumers to compare auto insurance quotes.
Only three companies actively cover electric cars: AXA, Liberty Insurance, NTUC Income, and Etiqa with vastly disparate pricing systems.
Udrivers’ advice is to research all options before purchasing any car, from using comparison websites to shopping around among insurers in advance of purchase.