Car insurance
First, let's take a look at car insurance in general, before turning to the specific case of electric car insurance.
What does the price of car insurance depend on?
The amount of insurance depends on several factors, including the vehicle and the driver:
- Your bonus-malus level: determined according to your driving history, based on your previous vehicles. If you've had several accidents in the past, you'll accumulate a malus. If you're not accident-prone, you'll accumulate a bonus and pay less for your insurance.
- The power of your vehicle he more "powerful" vehicles are synonymous with higher insurance values and a greater risk of accidents. Consequently, the more powerful the vehicle, the more expensive the insurance.
- The replacement value of the vehicle: the more expensive the repairs, the higher the insurance premium.
- Your age ew drivers are more likely to make mistakes and have accidents. As a result, they pay more for car insurance due to their lack of experience.
- Your address : There are two factors involved:
- This criterion is based on where you park your vehicle. If you park your vehicle on the street, it's more likely to be subject to theft or damage than if you have a closed garage.
- Depending on the city you live in, theft and accidents are more frequent on certain types of vehicles. Even if this is not your responsibility, the price of insurance will be affected.
What are the different types of car insurance?
- Third-party insurance
This is the minimum package. It covers civil liability, i.e. property damage and bodily injury caused to a third party. It is mandatory. It covers almost all material and physical damage, but does not cover hail, vandalism or fire.
- Theft and fire insurance
It provides compensation in the event of theft or fire of the electric vehicle. It is not compulsory, but recommended. It insures the vehicle against all damage other than accidental damage.
- All-risk insurance
It covers all damage to the vehicle, giving the driver peace of mind. It is not compulsory, but strongly recommended for new or high-value vehicles. It covers all types of damage, including vandalism, and will even replace the vehicle at its original value if damaged.
Prices vary according to the insurance and product chosen. You'll need to compare offers carefully to make the best decision.
A word of advice: As electric vehicle prices are generally high, and repair costs not negligible, we strongly advise you to take out comprehensive insurance to avoid any surprises.
Electric car insurance
Most insurance companies now offer electric car insurance, because the needs are not the same as for a combustion or hybrid vehicle. Some insurers will cover :
- Electric breakdown assistance 0 km ;
- Towing your electric car to the nearest charging station.
- Coverage of any electrical damage caused by recharging your car.
- etc.
Some insurers support the development of electric cars and offer more attractive rates. Some studies have also shown that electric cars have fewer claims.
Do insurers offer specific insurance for electric vehicles?
A study was carried out by UK insurer Direct Line Group in May this year. Neil Ingram, Head of Automotive Product Management at Direct Line Group, says, "We expect prices to fall in the future, partly due to the government's commitment to making vehicles greener and more accessible."
Since the covid-19 crisis and the stimulus plan with the conversion premium in France, the cost of insuring an electric car has fallen slightly.
In addition, an amendment to the French Finance Bill (PLF) provides for a one-third reduction in the insurance tax rate for the cleanest vehicles. Jean-Marc Zules, MP for Bouches-du-Rhône and member of the French National Assembly's Sustainable Development and Spatial Planning Committee, is advocating a reduction in the tax on insurance contracts from 33% to 20% for electric and hydrogen-powered vehicles. At present, the 33% rate is applied to third-party liability policies taken out on all vehicles (except for vehicles with a load of over 3.5 tons and farm commercial vehicles, which benefit from a reduced rate of 15%).
In June, on the Lesfurets website, requests for electric vehicle quotes accounted for 1.5% of total requests, 2 times more than in May.
Electric car insurance should soon be more advantageous than that of a combustion-powered vehicle, which is more polluting and has a higher deductible. All the more reason to invest in an electric car! We'll help you choose the right one: Future electric cars up to 2024.
Will my electric car insurance cost less?
As we saw above, the price of insurance depends on the power of the vehicle and the habits of the driver. But that's not all!
Residual value
As we've seen, the price of insurance depends not only on the new value of the vehicle, but also on its residual value. Residual value is the value of your car on the second-hand market after 1, 5 or 10 years.
Let's take the example of the Renault Clio combustion engine, the best-selling vehicle in Europe. The first Renault Clio left the factory in 1990, almost 30 years ago, and several million have since been sold. So it's easy for insurers to make assumptions about the Clio's second-hand market based on its new value, since they have a huge database at their disposal.
The case of electric cars
The situation is quite different for electric vehicles. The used market is still in its infancy, as the new market began to develop in 2015. According to OIE (Observatoire de l'Industrie Électrique), in Q1 2022, just over 35,182 cars of all makes and models sold 100% electric vehicles, compared with 2 million combustion vehicles. And there are currently 40 million vehicles on the road in France, 99% of them combustion-powered.
It's clear that it's much more difficult for an insurer to determine the residual value of an electric car, as this is a nascent market.
It will still take some time for insurers to gain a thorough understanding of electric vehicles.
In addition, electric cars have a lower tax rating than their internal combustion equivalents. Electric cars are also often used for short journeys, and drive slower than their combustion counterparts. By covering a shorter distance and often at a limited speed, the risk of claims is lower. With this logic, the amount you are likely to pay for your insurance is reduced.
Many electric car buyers are seen as low-risk profiles because of their choice of car: they are seen as more conscientious people, and this has an impact on the price of insurance. Some insurers will offer preferential rates to electric vehicle drivers, partly because of the vehicles' engine power. For some, it's also a way of boosting their "green" image.
The cost of insurance is therefore lower than for a combustion equivalent. However, be sure to take out comprehensive insurance.
Specific electric car insurance coverage
Electric vehicles do not operate in the same way as combustion-powered vehicles. There are therefore certain additional guarantees to take into account when signing your contract.
Here are some examples of coverages that should be included in your electric car insurance contract.
- Electric breakdown assistance
- Electrical damage caused by recharging your car
- Towing your car to the next charging station
- Personal charging stations
Please note: You should also check that the insurance company is capable of delivering on its promises.
How much does electric car insurance cost?
We asked for several quotes to compare prices from different insurers.
In this example, the driver parks in a closed condominium parking lot in Paris and has held his license for 10 years.
Insurance | Bonus | Model | Price per year incl. VAT |
L'olivier auto insurance | 0,5 | Nissan Leaf | 541 € |
MAF | 1 | Nissan Leaf | 1806 € |
Allianz | 0,5 | Nissan Leaf | 437 € |
Eurofil by Aviva | 0,5 | Nissan Leaf | 490 € |
AON | 0,5 | Nissan Leaf | 513 € |
Aviva | 0,5 | Nissan Leaf | 508 € |
Direct Assurance | 0,5 | Nissan Leaf | 580 € |
Conclusion
The electric car will continue to grow in popularity, with 3 million electric cars expected by 2028. The government's ambition is clear, and in line with ecological measures. State subsidies are encouraging the adoption of electric cars. Electric car insurance will follow the same trend, and will rapidly become more democratic, with falling prices.
To find out more about the characteristics of electric cars, you can read this article onrange, power, battery...
The maintenance of electric cars must also be taken into account. According to the Avere association,maintaining an electric vehicle costs 4 times less expensive than a combustion vehicle.
Read more : How to maintain your electric car
