Are Electric Cars Cheaper To Insure?

Guest Contributor

Guest Contributor

Last updated 14 July, 2022
How to find the best electric vehicle insurance and save on associated costs.

 

You may have heard the hype this past year about electric vehicles (EVs) and how they are poised to take off in popularity.  In Singapore, EVs are becoming increasingly common on the roads. In fact, Singapore even has a fee rebate scheme for car buyers.

However, as with all new technologies, there are still some kinks that need to be ironed out before they can become widely adopted. One of these problems is insurance rates, with insurers needing to work out the rates for EVs.

Singapore is taking steps in the right direction, with the government and car companies alike making efforts to get more electric cars on the road. But will this change affect how much we pay for our electric carsโ€™ insurance? Find out below. 

What is an electric car?

Electric vehicles use a battery pack to power its motor. If you choose an electric vehicle, you will require a vehicle charging station. EVs are considered environmentally beneficial because they do not emit polluting exhaust gases. Here are several compelling reasons to drive an electric vehicle:

  • Energy independence

Electric vehicles donโ€™t need gas stations. They require charging stations that can be available at home and other convenient places.

  • Reduce environmental impact

EVs don't emit tail gases, reducing environmental pollution.

  • Lowers inhaled emissions

There are no tailpipe emissions.

  • Lower maintenance cost

Electric cars don't require a regular oil change or parts replacement.

What are the insurance costs for electric vehicles?

Insuring an electric vehicle is generally more expensive than insuring a gasoline-powered vehicle. This is because of the following factors:

  • EVs cost more compared to conventional cars.
  • Electrical vehicles are prone to damage. In the event of an accident, electric vehicles are more likely to damage more parts than their gasoline counterparts.
  • They are expensive to repair. EVs generally experience less wear and tear, but component replacement is quite expensive.

The insurance cost of an EV depends on the model of the car. Tesla insurance, for example, is more expensive than typical car insurance. Aside from the aforementioned factors, the cost of insurance is also determined by your driving profile, experience and no-claim discount.

How to reduce the cost of electric car insurance

As more and more people embrace electrical cars, the purchasing cost is decreasing. However, they are still expensive to insure. Just like conventional cars, here is how you can save on insurance costs: 

  • Avoid traffic violations and accidents.
  • Compare rates and look out for discounts.
  • Find tax credits and rebates offered by the government.
  • Work with companies that offer you rewards.

Difference between insurance for electrical and conventional cars

There is no major difference between the insurance policy of an electric car and that of a conventional car. However, some insurance policies don't cover the following:

  • Battery failure or defects by default. You will need an additional maintenance package that includes a list of parts that are likely to fail.
  • Other insurance only covers accidents, acts of God, or uncontrollable events.
  • Windshield coverage especially for Teslas. Most insurance won't cover the extended windshield that goes to the roofline.
  • Most insurers do not cover charging accidents.

Related to this topic: 
How Much Does It Truly Cost to Maintain a Car in Singapore?
11 Fun (and Lesser-Known) Facts About Car Insurance For You Car Owners
Buying An Electric Car In Singapore: A Complete Guide
Car Insurance: What You Need To Know And How These 5 Factors Determine Your Car Insurance Premium
5 Things to Consider Before Buying Car Insurance in Singapore

Best insurance deals for EVs in Singapore

If you are looking for insurance for your EV then you are in the right place. Weโ€™ve shortlisted the best plans. 

NTUC Income Electric Car Insurance

NTUC Income offers usage-based insurance to EV owners. In line with Singaporeโ€™s Green Plan 2030, NTUC offers three plans for electric cars. Here are the maintenance benefits you can expect from each plan. Other insurance details, such as liability, are the same as for conventional cars.

Benefits Prime Plus  Pro
Minor servicing โˆš โˆš โˆš
Major servicing X โˆš โˆš
Towing  โˆš โˆš โˆš
Other car parts X X โˆš

Note: The insurance premium you pay depends on the car's make and model. 

Below is an example of premium charges you can expect from NTUC income.

Car make Cost per km
Tesla From S$0.21/km
Renault From S$0.06/km
Nissan From S$0.09/km
Mini  From S$0.12/km
MG From S$0.12/km
KIA From S$0.10/km
Hyundai From S$0.09/km

Liberty Insurance โ€“ Insure My Tesla

Liberty Insurance has designed packages for Tesla owners. The Insure My Tesla package has the following benefits:

  • 24/7 support in case of accidents or breakdown
  • Charger liabilities protection
  • Guaranteed auto protection benefit
  • Coverage for LTA-approved Autopilot and Full Self-Driving Capability features for Tesla cars
  • Loss of use benefits
  • Medical expenses for the occupants of the car
  • No-claim discount at 30%
  • Personal accident benefits
  • Provision of legal aid

Allianz Electric Motor Protect

Allianz offers comprehensive motor protection for EVs. Below are the benefits you can expect from this cover:

Benefits Third party Third party fire and theft Comprehensive
Loss or damage to the car by accident or theft X X โˆš
Loss or damage by fire or theft X โˆš โˆš
Taxi reimbursement X X โˆš
Towing cost X X โˆš
Damage to third party โˆš โˆš โˆš
Electric and electronic components cover

Advanced driver assistance systems (ADAS) cover
X X โˆš
Private electric car charging station cover X X โˆš
Unlimited windscreen cover  X X โˆš
No-claim discount protector โˆš โˆš โˆš
Lifetime warranty on repairs  X X โˆš
Cyber hacking cover X X โˆš

Still not sure about which insurance cover you should get? We can provide personalised insurance quotes for your car.

 

Score up to S$300 cashbackS$280 petrol vouchers or up to 23% in discounts on your car insurance premiums when you purchase it via SingSaver.

Plus, unlock an exclusive chance to win S$500 worth of FREE PARKING when you buy now! Promotion ends 30 June 2024. T&Cs apply. 

 

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