EV Adoption Challenges Include Higher Insurance Costs
As BMW enthusiasts, we’ve all heard the range-anxiety fears, the challenges of charging, and the other various-but-diminishing reasons wielded against adoption of electric vehicles. But cost continues to be a major factor. According to a recent report by Insurify.com, one of the barriers to adoption of fully-electric vehicles in the U.S. includes the higher cost to insure the vehicles.
And yes, the still-droolworthy i8 was fairly expensive to buy and insure when it was released in 2013, but I still firmly believe that its brilliant design and execution—more so than anything Tesla cobbled together—made EVs attractive to actual auto enthusiasts.
According to the report, car insurance for EVs “costs about 20% more than for traditional vehicles. Full coverage for gas-powered vehicles costs an average of $210 per month, compared to $251 for EVs.” Of course the cost of the vehicle, driver history, and other factors can impact the cost of insuring a vehicle, but a 20% increase due to the power source of the vehicle remains a speed-bump to adoption.
Chart by Insurify.com
Also according to the report, EVs currently make up a bit over 7.5% of the U.S. vehicle market share. Given that the EV-share of the U.S. market in 2019 was only 1%, that’s some pretty significant growth. The report continued, “A record 1.2 million drivers bought EVs in 2023, according to KBB (Kelley Blue Book). The segment will hit a 10% market share in 2024, according to Cox Automotive’s forecast.”
One aspect of the report included the chart that shows the average insurance cost for some particular models. And, while we know BMW usually beats out Mercedes and Audi in comparison and competition, this is a win we could probably do without. According to the report, the BMW i4 eDrive35 tops the chart for insurance cost among electric vehicles in 2024. While I have no doubt that the doorstop Tesla “cybertruck” will reign supreme on this chart soon, it’s not included in the calculations.
The article covers a lot more than insurance costs, detailing many existing concerns and offering potential solutions to ease transition to a higher percentage of fully-electric vehicles zipping along the roadways.
Read the full article at Insurify.com here.
