In general, the insurance premium for new energy cars — which includes electric — is about 20% higher than it would be for comparable traditional fuel-powered cars, said Wenwen Chen, director at S&P Global Ratings, who leads the firm’s research for China insurance.
Many factors go into determining pricing. But Chen said insurance companies find that the loss ratio — a measure of cost for insurers — tends to be higher for new energy vehicles than for internal combustion engine cars.
One of the main reasons she cited for a higher loss ratio is more accidents, especially more costly ones — since new energy vehicles often use parts that aren’t mass-produced yet.
In the U.S., insurance for electric cars also tends to be about 15% more expensive than that for combustion engine cars — primarily because electric cars in the U.S. tend to be luxury vehicles, according to Chase Gardner at Insurify, which compares car insurance rates in the U.S.