Study: Electric Cars Cheaper to Own, Insure

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Oct. 27, 2014—Electric vehicles (EVs) don’t just save car-owners at the gas pump, according to a new study by CoverHound Insurance. The energy-efficient vehicles also cost drivers hundreds of dollars less on their car insurance each year.

CoverHound claims in its study that insuring an electric car is about $200 less than insuring a vehicle with an internal combustion engine.

The money saved by using electricity instead of fuel to get around makes electric models that much cheaper to own, according to the report as well. The Report estimates that an electric car uses $300 of electricity to power the vehicle each year, while even the most fuel-efficient cars usually run at a minimum of $1,600 in gasoline in a year.

From the CoverHound study: “In terms of insurance, electric cars are less expensive for the most part. That may be because insurance companies view EV drivers as more responsible, and therefore less likely to get into an accident or get a traffic violation. For example, the Chevy Volt costs an average of $1,452 to insure for one year, while its non-electric counterpart, the Cadillac CTS, is $2,024. The Nissan Leaf—which was the most popular electric vehicle in 2013—has an average of $1,513 for a year-long policy, compared to $1,801 for the Nissan Altima."

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