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Additional costs to consider when shopping for an electric vehicle

Interest in electric cars soars with gas prices
Posted at 7:29 AM, Mar 23, 2022
and last updated 2022-03-23 08:16:52-04

BALTIMORE, Md. — The average price of gas dropped 50 cents since Maryland pumped the brakes on the state's gas tax but the gas tax holiday only lasts for 30 days.

More people are considering electric cars as a way to save but the alternative fuel cars also come with additional costs.

Buyers in the market for an electric car will need to think about more than make, model, and where to plug in.

It's fun to shop for a new car, especially if you think it's going to help you save some money but buyers should consider how much car insurance for an electric car will cost.

The cost of car insurance often is the last thing on people's minds when they're kicking the tires and going for a test drive.

These days, many drivers have their eyes on hybrids and electric vehicles since the state average price of gas hit a high of $4.30 on March 11th.

The online marketplace Value Penguin by Lending Tree found insurance premiums for an electric vehicle can cost nearly 25 percent more than a gas version of the same car.

How much more or less depends on the type of car the buyer is driving now, their driving history, and the type of coverage they select.

Value Penguin analysts compared four moderately-priced cars available in both electric and combustion models: the Fiat 500 series, Ford Focus, Kia Soul ,and Chevy Spark.

The gas versions of these cars are all priced between about $13,000 and $25,000.

However, the electric versions of these same vehicles cost thousands of dollars more, between $25,000 and $35,000.

With high-capacity batteries and sophisticated sensors, electric vehicles tend to be more high-tech and more expensive to repair.

Analysts say these higher costs drive higher insurance premiums for electric cars, about 23 percent hight on average.

For example, Value Penguin found if your insurance premium for a gas car was $1,000 a year, you could expect to pay anywhere from about $1,200 to $13,000 a year for the electric version.

Just as buyers shop around for a car, they’ll also want to shop around for insurance.

Value Penguin found the price varied dramatically among the three companies they surveyed for electric car rates from seven percent more to as much as 33 percent more.

There are many benefits which come with buying an electric car besides not having to pay high gas prices.

For people concerned about the environment, it's a clean energy car.

As far as costs, Yahoo Finance notes electric cars are more expensive to buy but cheaper to own in the long run because drivers can save $14,500 in fuel costs over a 15-year-period.