Whenever you start thinking about insurance, the first thought tends to be about the risks of different types of traffic accident or the ways in which you might lose the vehicle. You make lists of collisions, vandals writing their names on your bodywork, thieves driving the vehicle away, floods carrying your car off, and so on. Then you get to all those other personal factors like where you live, what your credit score is, and so on. After a while, you wonder how you can hope to find cheaper cover when, so often, whether you make a claim or the amount of the damage has nothing to do with the way you drive. Now add in the fact that you have no control over the cost of gas or of how much the body shop will charge to repair any damage and there’s a temptation to give up. Except that’s a bit negative.
No matter what you may fear, insurance is really all about whether you are going to make a claim. Those who have the best track record, have the lowest premium rates. So don’t give up. If you have a defensive style of driving and avoid all the most obvious situations in which you may get into an accident, the insurer will reward you over time. Then you ask whether there’s any way in which you can speed up time.
Welcome to the brave new world of technology. Thanks to the development of all our cell phones and other mobile computers, there’s a way of continuously transmitting information from your vehicle. Manufacturers are now fitting some clever chips to monitor exactly how your vehicle is performing. If something starts to go wrong, the vehicle displays warning messages and can signal your usual mechanic with details. This covers everything from whether your tires are properly inflated, the level of wear in the brakes, and so on. Add in the GPS transmitters so that, if someone steals your car, you have a reasonable chance of finding it, and the package is genuinely useful. Continue reading →
It may surprise many, but electric cars were in before the gasoline powered internal combustion engine cars that we are used to were all that popular. In the late 1800s, electric cars were breaking land speed records for automobiles-including the 62 mph La Jamais Contente that set the record in May of 1899.
In the 1970s and ’80s, the interest in electric cars picked back up as gasoline prices skyrocketed. By the time the ’90s came around, public interest and government support meant that nearly every major auto maker had an electric model available.
Oil lobbying seemed to crush that movement. However, the 2010s will be the decade that brings electric cars into vogue. It’s a perfect storm: incredible gas prices, renewable energy burgeoning, and an international consensus on climate change forcing people to recognize the time for a change.
The all-electric company Tesla is expanding around the world and doing quite well. The highly anticipated Chevy Volt has hit the streets to rave reviews. Nissan has begun pushing their own electric-only model, which is $10,000 cheaper than the Volt, and Ford has the new Focus Electric that it hopes will make waves internationally. With government incentive programs, these cars are sure to sell given the benefits to the environment, economy, and personal finance.
But are they cost-effective to insure?
A number of factors about the car influence your cost of insurance, but the big three are replacement cost, repair cost, and safety.
Replacement Cost
This just depends on how expensive your vehicle was in the first place. The Leaf and Focus might not cost so much to replace, but if you buy the more expensive Volt or a Tesla, you are going to have to buy more coverage to have your vehicle replaced. Furthermore, you won’t get a government voucher this time!
Tip: Get gap insurance if you get an electric vehicle. Your car loses one-third of its value when you drive it off the dealer lot, so make sure you don’t lose one-third of what you paid. For one, there aren’t many used models available because these cars are so new.
Repair Costs
While many repairs can be done by any mechanic, internal repairs are going to need to be brought to an electric car repairperson or a dealer. The parts are rarer and more expensive as well, so electric cars can cost a bit more to repair. You’ll have to pay a tad extra in insurance. Continue reading →