Electric vehicles (EVs) and hybrids are the future of cars in the world. Manufacturers and the government are working together to push for greater production of EVs. Although it seems more ambitious than realistic, they’re aiming for EVs to make up 50% of new vehicles sold in the U.S. by 2030.
There are several benefits of driving hybrid and electric vehicles, and we’ll look at some of the most significant. When you purchase a new EV or plug-in hybrid, you automatically get a discount, and when you drive them, you contribute to lower air pollution and save on fuel. Most insurance companies also offer discounts for hybrid and electric car insurance.
You can save the environment and improve your bottom line by maintaining your executive image with top-of-the-line hybrid and electric cars.
Incentives for Purchasing EVs
Electric vehicles and hybrids come in the same range of high-end to low-end types that traditionally fueled cars do. You can go budget-friendly and give up some convenience and comfort, or you can choose luxurious trims and get access to all the bells and whistles available.
It doesn’t matter how fancy your EV or hybrid is; most are eligible for a federal government incentive of up to $7,500 when you purchase it new. A couple of manufacturers have exceeded the 200,000 vehicle limit that the government promised to credit, so you won’t be eligible for the federal rebate if you buy a Tesla or GM electric or hybrid vehicle.
Luckily, there are more incentives available than are offered by the federal government.
State and Local Incentives
The National Conference of State Legislatures (NCSL) publishes a list of state policies incentivizing EVs and hybrids. Currently, 47 states have legislation that promotes the use of EVs and hybrids.
Each state has different incentives, and cities have an even greater variety of EV-friendly rebates, credits, and discounts.
Before you start shopping for your EV or hybrid, find out what incentives are available where you live.
California is leading the way for EV and hybrid adoption standards and incentives. They reward zero-emission vehicle purchases with up to a $7,000 rebate, and that’s in addition to federal credits. Some cities in California offer reduced electricity for charging EVs during off-peak hours.
Colorado has also developed EV-friendly standards and rebates. Colorado offers a $2,500 rebate on new electric vehicle purchases, so if you reside there, you could get up to $10,000 in rebates when you combine the federal and state incentive programs.
California and Colorado may have the most well-known programs, but many states and cities offer significant incentives that you don’t want to miss.
After you’ve received initial rebates when you purchase an EV or hybrid, you can expect to start experiencing the benefits of driving an alternative vehicle.
Benefits of Driving EVs
Electric vehicles don’t need gasoline, and hybrid cars require very little. You’re going to love not needing to buy gas. The benefits of avoiding gasoline will continue to increase as fuel prices soar.
Now, you will have to pay for the electricity to charge your batteries, but your net expenses to run your electric vehicle will most likely be lower than your expenses to run a combustion engine car. You also have the option of using solar, wind, or other renewable energy sources to charge your battery.
Electric vehicles are quiet running. Most people get used to the engine noise in traditional vehicles, and they don’t even notice it. Still, when they get into an EV and experience the silence, many people report a calming and freeing effect the elimination of droning noise brings.
Battery engines are more straightforward than gasoline engines, so they have fewer problems and are easier to fix than gas engines.
Electric vehicles are cheaper to own over the long term. Initially, even with incentives, the purchase price tends to be higher than similar gas engine vehicles. But over time, with lower running costs and repair bills, you come out ahead with an electric car.
Insurance Savings With EVs
Electric vehicles are more expensive than traditional vehicles in the same class. A minor accident could also cause costly damage to the battery or vehicle sensors. Insurance companies always charge higher rates for higher risk, so EVs and hybrids cost more to insure than traditionally fueled vehicles.
The good news is that most insurance companies have an electric vehicle, hybrid, or otherwise “green” vehicle discount.
If you want to maximize your savings, there are several steps you can take to get the best car insurance rate possible and still make sure you’re adequately covered.
First, you’ll want to compare car insurance quotes. Narrow down the hundreds of potential insurers by choosing a few with the best rates for your situation.
Second, choose your deductible. Plans with higher deductibles will have lower monthly payments. If you go that route, though, you’ll need to carefully save so that you can pay the deductible if you need to file a claim.
Third, get the right coverage for your needs. If you made a significant down payment when purchasing your electric or hybrid vehicle, you might not need to buy gap insurance. Along those lines, you can usually skip the dealer’s exterior maintenance protection plan. It adds cost to your vehicle, and it’s rarely needed.
Fourth — and this is the big one — you’ll want to find out what discounts you’ve earned. Discounts can save you up to 30% off your premiums. Here are some of the popular discounts to consider:
- Electric or hybrid vehicle
- Good driving history
- No claims history
- Paperless billing
As mentioned above, owning an EV or hybrid will usually help you get discounted insurance rates. Don’t assume that a discount will automatically be applied. Instead, double-check that you’re getting that discount.
Electric vehicles are the cars of the future, and now is a great time to invest in one. The incentives can make it easier to purchase the vehicle initially, and you’ll save money in the long run, thanks to the nature of battery-operated vehicles.
You can also feel better about your impact on air pollution and emissions when you drive electric and hybrid vehicles. When you add insurance savings into the equation, you’ll be pleased to see how much you could save. Driving electric and hybrid vehicles has clear benefits making the purchase worth the money.
Melanie Musson writes and researches for the car insurance comparison site, CarInsurance.org. She tries to make the world a better place and loves to share her alternative vehicle research with her readers.
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