Is GAP Insurance More Expensive for Electric Cars?

Nobody likes to think about the worst-case scenario, but accidents do happen. However, being prepared for such incidents can ensure vehicle owners are not left out of pocket when making a claim when a vehicle is written off or stolen.

Despite the options available, finding the right insurance can be confusing at times, especially for those that own an electric vehicle.

What Is GAP Insurance?

GAP insurance is a term used for Guaranteed Asset Protection, and its goal is to cover the shortfall being a total loss payout and the value of the vehicle.

One commonly asked question is where GAP insurance is more expensive for electric cars? Although it can be, this is not always the case.

We spoke to Dynamo Cover, who offer GAP insurance, and they advised us that being aware of the factors that can increase premiums gives vehicle owners more opportunity to make changes.

They also stated that as this industry continues to expand and we push ever closer towards the switch over for car manufacturers to move from petrol and diesel to electric vehicles, we expect the insurance industry to shift to be a lot more accommodating towards electric vehicles.

As well as upcoming changes to the way diesel and petrol are used, the surge of popularity of electric vehicles means that the industry infrastructure will adapt, making the purchase of an electric car more affordable and taking advantage of reduced insurance premiums.

In addition to this, using a comparison website allows those searching for insurance to better understand the provider as well as the policy.

Electric Cars Can Cost More to Insure in Some Instances

Regardless of the insurance policy underwritten, there will be instances when electric vehicles cost more than conventional cars regarding insurance. However, as electric cars become more commonplace, the policies become more aligned with other cars.

There can be several reasons why some GAP insurance policies can cost more than conventional options, including but not limited to the following.

Electric Vehicles are More Expensive

Electric vehicles contain fewer moving parts than other vehicles. However, sourcing parts for an electric vehicle can be more expensive, meaning the overall purchase price is greater. As the vehicle is more expensive, the insurance registered will also incur a higher fee in some instances.

Electric Vehicles Can Be Prone to More Damage

Although current electric vehicles are lightweight and agile, they are not always as robust as conventional vehicles. Of course, there can be exceptions to the rule, but if your GAP insurance premium is higher than expected, it could be due to this reason.

Batteries Can Be Expensive to Replace

Although efforts are made to safeguard the inner workings of an electric vehicle, some parts can be expensive should an accident occur, especially regarding batteries.

As well as replacing the battery, there can be instances when additional safety measures need to be undertaken. As the repair will cost more, so will the vehicle’s insurance.

Some Repair Shops Are Not Equipped to Handle Electric Vehicles

Finding a garage that can repair a vehicle that uses petrol or diesel is straightforward, but this is not always the case for electric cars.

Although garages are aligning their services to meet the requirements of electric vehicle users, not all establishments can currently do so. As a result, the cost can be higher as specific garages need to be used.

Are There Ways of Lowering GAP Insurance for Electric Vehicles?

As many will already know, several factors can be considered when creating a policy. Factors can include a person’s postcode, whether any modifications have been made to the vehicle and the mileage.

Although some of these factors can mean some premiums cost more than first thought. However, some steps can be taken to reduce the cost of GAP insurance for electric vehicles, including the following.

Maximise the Security of the Vehicle

There are many ways of securing a vehicle. A garage to store the car can help lower insurance premiums, as can the addition of alarms and immobilisers. When making modifications to the vehicle, it can be worthwhile speaking to the proposed insurance to ensure the addition will not increase the cost of GAP insurance.

Give Accurate Details Regarding the Mileage

Many insurers determine that the fewer miles a vehicle does, the less risk it poses. Of course, some will be unable to avoid carrying out long trips but being accurate regarding mileage ensures that you are never paying more than you need to for GAP insurance for electric cars.

Add an Experienced Driver to the Policy

Those planning to drive an electric vehicle for the first time will often find they must pay higher premiums than experienced drivers. As such, those searching for ways to reduce insurance premiums could consider adding an experienced driver to the policy.

Use an Insurance Company Specialised in Electric Vehicles

Given how prominent electric vehicles are becoming, it should not come as a surprise there are insurance providers offering dedicated policies. However, some checks still need to be made to ensure that the provider chosen is the right fit.

Where to Find GAP Insurance for Electric Vehicles

As there are many factors to consider regarding electric vehicles, those searching for insurance for the first time could find the process time-consuming and overwhelming. Fortunately, there are ways of finding GAP insurance that is affordable and suitable for your vehicle, such as using a comparison website.

Dynamo Cover can provide customers with competitive quotes for GAP insurance and has over 10,000 reviews praising its excellent service.

Although there can be instances when GAP insurance for electric cars is expensive, using the above tips in conjunction with a comparison website allows you to find quotes easily and ensure you are never paying more than you need for GAP insurance.