Top 5 EV ownership concerns and how insurance might help

Overview: Electric vehicles may come with some advantages, but owners and potential buyers may sometimes worry about pricey repairs, battery issues, charging equipment glitches, limited range or total loss after an accident. Understanding what your auto insurance covers might help ease some of these EV ownership concerns. This article highlights five common EV worries and explains how coverages like collision, comprehensive, gap insurance and EV-specific roadside assistance might help provide protection.

Year over year, electric vehicle (EV) sales continue to hit new highs. This might come as no surprise, since the advantages of electric cars can include improved fuel economy, lower fuel costs and reduced emissions. Still, owners and prospective buyers might have reasonable concerns, particularly because of the unknowns that come with new electric vehicle technology. But understanding how auto insurance coverage works may help ease your worries.

EV concerns addressed at-a-glance

Here’s a quick look at five common concerns and how different insurance coverages may help address them:

*Note: Insurance coverage for EVs and EV components could vary by insurance provider.

Exploring the details of each concern

Below we break down the five common concerns and explain where standard coverages and add-ons might help.

Concern #1: Will repairs strain the budget?

EVs include advanced technologies. Therefore repairs, especially to specialized components like sensors or battery housing, can sometimes cost more than with comparable gasoline cars.

That’s where insurance might help. Collision coverage may help with damage resulting from a covered collision with another vehicle, object or a rollover, while comprehensive may cover other damage, such as theft, fire or storm damage. After the deductible is paid, these coverages help take care of the remaining covered repair costs which may help protect you from large out-of-pocket expenses.

Concern #2: What if the expensive battery gets damaged or fails?

An EV’s high-voltage battery can be a critical and costly component, and some owners worry about physical damage from an accident or road debris, as well as potential failure or degradation over time.

Insurance could help in some situations. Your auto policy’s collision or comprehensive coverage may help cover physical damage to the battery caused by a covered incident, such as a motor vehicle collision or fire, subject to any deductible.

However, standard insurance will not cover the battery losing capacity over time (normal degradation) or failing due to internal defects or ordinary wear and tear. These issues would need to be addressed by the vehicle manufacturer’s battery warranty, if any, during its specified term (e.g., 8 years/100,000 miles whichever comes first is common).

Concern #3: What happens if the charger gets damaged or stolen?

Charging equipment, whether it’s the portable cord that comes with the car or a permanently installed home charging station (EVSE), can feel like an investment. It can be reasonable to worry about damage, theft or malfunction.

Insurance may help, but coverage can be complex and can depend on the type of equipment and your specific policies. Portable chargers and cables may be treated like vehicle equipment. If they’re damaged or stolen in a covered event, your auto policy’s comprehensive or collision coverage might apply.

Coverage for permanently installed home charging stations tends to be less straightforward. Damage to these charging stations may be covered by your homeowners policy, renters insurance policy or auto policy, though a specific endorsement may be required. Check with your insurance company or contact a State Farm® Agent to learn more.

Concern #4: What if I run out of charge and become stranded?

“Range anxiety,” the fear that the battery will run out before you reach a destination, can be a common concern, sometimes for new EV owners or those taking longer trips.

Insurance may help through optional roadside assistance programs, some of which might include EV-specific benefits. Some plans may specifically state that they cover towing an EV, sometimes with a guaranteed flatbed to help protect the drivetrain, to the nearest qualified charging station, or, in some cases, to your home. Some programs might also offer emergency mobile charging to provide a small amount of charge on-the-spot. Please note that these EV-specific roadside assistance benefits may not be offered by all insurers. Check with your insurance provider to confirm what coverage is available.

Concern #5: Are EVs more likely to be declared a total loss?

EV repair costs can sometimes be high, especially if the main battery pack is damaged. In some cases, it may not be economical to repair a vehicle, given its current market value or actual cash value (ACV); local statues or regulations may also require that vehicles be declared a total loss if certain damage thresholds have been met or exceeded. Some owners worry this may occur more often with electric cars vs gas cars.

If your car is declared a total loss, standard collision or comprehensive coverage may pay the vehicle’s ACV minus your deductible. To help address any remaining financial gap, particularly for newer cars or those with loans or leases, you may want to consider optional coverages. Gap insurance may cover the difference if you owe more on your loan or lease than the ACV payout. A new car replacement policy may provide a brand new vehicle of the same make and model if your relatively new EV is totaled within a specific period of time, rather than only paying the deprecated ACV.

Charging ahead with more confidence

EV ownership can raise new questions but knowing how your policy and optional coverages work may ease your worries about repairs, battery issues, charging equipment, roadside assistance and total loss valuations. Understanding your protection options might let you enjoy the benefits of electric driving with more confidence.

To explore coverage options personalized to your EV, connect with a State Farm agent today or get an auto insurance quote online.