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Drivers happily threw their money at Tesla this year but insurance can shock the sticker – here’s what you need to know


Drivers happily threw their money at Tesla this year but insurance can shock the sticker - here's what you need to know

Drivers happily threw their money at Tesla this year but insurance can shock the sticker – here’s what you need to know

If you feel like you’re seeing more of that shiny metallic “T” on the road, you’re not mistaken. Electric vehicle sales are skyrocketing, and Tesla is leading the fleet.

According to Experian, over the past five years, electric vehicle registrations have increased by 250%. And while the overall auto market has struggled throughout the year, in the first three months, registrations have grown by a staggering 60%, according to Automotive News.

And Elon Musk’s car company is going strong: In the third quarter, it sold 42 percent more cars than it did in the same period in 2021. The company delivered 343,000 vehicles globally in the third quarter of 2022.

But even though many Americans have decided Tesla is worth the high pricethey can face a challenge finding affordable coverage for these technological and ecological marvels.

According to ValuePenguin’s analysis, the average cost to insure a Tesla is $3,947 a year — but how much you’ll pay depends on a few other important factors.

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Why do Teslas cost more to insure?

While you will save hundreds of monthly gas billsany electric vehicle will generally cost you more to insure.

Why so? Car insurance companies set rates based on all elements. So even if you have a spotless driving record, live in a low-crime area and take advantage of some driving discounts, your odds are still likely to go up compared to the car running. with your gasoline.

That’s because electric cars cost more and more expensive to repair. The insurance company may think you have a low risk to claim, but if anything happens to your car, it means the repairs will be very expensive. So your premium is set high to reflect that risk.

According to ValuePenguin, if your insurance premium for a gasoline-powered car is $1,000 a year, you’ll likely pay $1,250 for a comparable electric car. As a luxury car, Teslas are still more expensive.

Penguin Value has reviewed How much does it cost to insure the different Tesla models each year? Among other factors, these averages assume the owner is a 30-year-old male with a clean record and good credit score living in Texas:

  • Tesla Model 3: $3,386

  • Tesla Model S: $4,956

  • Tesla Model Y: $4,275

  • Tesla Model X: $3,057

And other car companies, including Chevrolet and Ford, are offering Tesla a run for its money in the EV market, so be aware of the potential for higher insurance costs between brands.

Of course, your rates will vary from insurance company to insurance company — that’s why you should always Compare quotes from multiple insurance companies.

How do other costs overlap?

Most electric cars typically cost more than standard vehicles. And when they get damaged, you may have a harder time finding a qualified mechanic to repair them—in addition to asking for more expensive and harder-to-find parts.

Damaged batteries can add to your repair costs. If your battery leaks, your mechanic will have to take additional precautions, which will be reflected in your bill.

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A charging station is also required. You’ll have to pay something between $200 and $1,000 to install your own charging station before you hit the road.

However, you can expect your new vehicle to have lower total maintenance costs. Electric vehicles also don’t need frequent oil changes or replacement of radiator hoses, fan belts, or gaskets.

So even with slightly higher coverage, your car budget doesn’t need to change dramatically.

Where do I go from here?

If you buy another Tesla or EV and start transitioning your insurance policy, don’t forget to ask your insurance company if there are any promotions or discounts you can take advantage of. to reduce its costs.

And if you haven’t checked your insurance company’s options recently, you could end up paying as much as $500 a year for this essential policy.

Your best chance at finding savings on your auto insurance is to spend some time shopping around and comparing offers.

Often, that can mean spending hours — or even days — calling different insurance companies just to give them your details to get an accurate quote. . But in like at least three minutesYou can find the best auto insurance deals — all in one place.

Don’t wait — give your budget some breathing room and stop overpaying for insurance right away.

This article is for information only and should not be construed as advice. It is provided without warranty of any kind.

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