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How much does car insurance cost for Tesla

The rising cost of gasoline has prompted Australians to renew their interest in EVs, and Elon Musk’s Tesla has begun making inroads into the Aussie market this year.

Although rising demand would probably lead to lower prices, electric vehicles (EVs), particularly Tesla, currently scare off buyers with their high prices, low availability, and higher than usual insurance premiums. 

So why is it that electric vehicle insurance is more pricey? Can insurance costs be reduced in any way? Is it still a good idea to get an electric vehicle?

Reasons why insurance costs are higher for electric vehicles?

The Insurance Council of Australia (ICA) has released a statement explaining why electric vehicle insurance rates are higher than those for conventional gasoline or diesel vehicles.

Simply said, it is more challenging to acquire an electric vehicle.

Electric vehicles are a new market with weaker supply chains, thus they must be imported to Australia along with most other cars and auto parts. This increases the provider’s out-of-pocket and repair costs, making ordinary auto insurance claims (such as damage repairs and rental car rentals) more costly or unpredictable. Insurance providers charge higher rates for EVs because of the greater financial risk they pose.

EV experts argue that “far less” issues may occur with an EV, hence the likelihood of filing an insurance claim is low. However, how long it will take to fix a problem if it occurs is unknown. 

It sounds unsafe and uncertain, so the EV insurance premium goes up.

Long-term costs will decrease as the supply chain for EV components and models develops. For the time being, though, higher insurance rates may be a reality for Tesla owners.

Finding affordable insurance for your Tesla.

There are ways to reduce the cost of insurance for an electric vehicle potentially, despite the above mentioned situation:

  • Choose a higher deductible. If you drive an electric vehicle, you may be able to lower your auto insurance prices by choosing a greater excess. You should know that you will have additional out-of-pocket expenses when the time comes to file a claim.
  • Do your research. Although it may seem obvious to shop around for the best car insurance rate, you’d be surprised at how few people actually do so. Check out more than 3 insurance companies or website where you can compare auto insurance plans.
  • Have a safe trip. Many auto insurance companies will give you a “no claims discount” if you can demonstrate that you are a safe driver who has never filed a claim. 
  • Purchasing multiple policies from the different insurance providers can be expensive. If you insure many vehicles or buildings with the same company, you could save money. 
  • The less time you spend on the road (and the less often you’ll need to recharge) makes you less of a risk to the service provider. 

*Please note that the above measures are general advice only, consumers should not rely on them as expert advice.

Is it sensible to invest in a Tesla?

Ultimately, one’s demands, money, and life circumstances will determine which vehicle is ideal for them. But apart from the environmental benefits, there are significant financial incentives to switch to an electric vehicle such as a Tesla.

The Electric Vehicle Council (EVC) reports that the average cost of operating an EV is only $4 per 100 km travelled, compared to roughly $14 for the average fuel automobile. The price difference is about 75%.

Customers who have solar panels placed at their houses can save a significant amount of money by charging their devices during the day. Some supermarkets even provide free charging stations, so it’s not too difficult to stay mobile.

Even though replacement parts may take some time to arrive, repairs are less common and easier to carry out on EV motors than on internal combustion engines (which typically have over a few hundred of parts).

Electric vehicles (EVs) offer a promising future alternative to gas-powered automobiles. Drivers may be compensated for their environmentally responsible purchase when demand, understanding, and infrastructure increase in this area.

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