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Gas Car Insurance Vs Electric Car Insurance: Which Costs Less?

Car Insurance Vs Electric Car Insurance
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Electric cars, sometimes known as Electric Vehicles or “EVs”, are growing increasingly popular in Singapore. Last year saw a 50% increase in the number of electric car owners in the city-state. With significant efficiency savings over conventional cars on offer, combined with the Singapore Green Plan target for an all electric vehicle population from 2040, it’s not hard to see why.

That said, it’s no secret that electric cars cost a lot of money to buy, and many Singaporeans may think electric vehicles also cost more to insure, too – but how true is this exactly? Well, insuring an electric vehicle is typically a little costlier than purchasing any type of car insurance policy for a regular car, and there are a number of reasons EV insurance generally demands a higher insurance premium.

The good news is that there are tons of tax incentives available for cars with low (or no) tailpipe emissions, as well as lots of ways of reducing your overall EV car insurance cost.

Is Car Insurance More Expensive for Electric Cars?

Yes, electric vehicle insurance rates generally cost a little more than auto insurance for conventional cars. The typical electric car insurance cost can range from $2,000 to $5,000 as many insurance companies will factor in the higher repair, car parts and component replacement costs of electric car models compared to regular cars.

Read Also: NTUC vs FWD vs Singlife Car Insurance

Top Reasons for High Electric Car Insurance Premium Costs

There are several reasons electrical and conventional cars attract different comprehensive insurance rates. Insuring Tesla cars, a Nissan Leaf or other electric motor models is generally more expensive than insuring their gas powered counterparts, because:

1. Not Many Insurance Providers Offer Electric Auto Insurance Right Now

At the time of writing, there’s only a handful of companies offering insurance in Singapore that can provide electric car insurance premiums.

2. Your Electric or Hybrid Vehicle is Most Likely Made By a Luxury Brand

Many electric cars hail from luxury manufacturers like Tesla cars. Though a basic Nissan Leaf or Toyota Prius will inevitably cost less to insure than Tesla insurance specifically designed for Tesla cars.

3. Self Driving Capability Features are Deemed “Risky” By Insurers

Traffic violations related to complex self driving capability features fitted to many modern electric vehicles could carry a higher risk from an insurance perspective.

4. Electric Cars Generally Cost More

A costlier vehicle will attract a higher insurance premium than other cars that are cheaper to insure – it’s as simple as that.

5. Electric Car Parts are Typically More Damage-Prone

EV insurance understands that while electric motor and car parts generally suffer less wear and tear than their gas and diesel counterparts, the cost of replacing car parts, a battery pack or fixing a battery failure is often much higher.

Electric Car Insurance vs. Gas Powered Car Insurance – A Comparison Guide

Let’s compare the difference in insurance premiums costs between some popular gas and electric vehicle models in Singapore:

Gas / Electric Car Models Insurance Cost for Electric Car Models Insurance Cost for Gas Car Models

Chrysler Pacifica

$2,000

$1,900

Ford Escape

$1,800

$1,700

Ford Fusion

$2,000

$1,900

Honda Accord

$1,900

$2,000

Honda CR-V

$1,800

$1,600

Toyota Camry

$2,000

$1,900

Toyota Corolla

$1,850

$1,900

Toyota Highlander

$1,900

$1,700

Subaru Crosstrek

$1,850

$1,600

Average

$1,900

$1,800

As you can see, while most auto insurance providers charge higher insurance premiums for new electric car variants, this isn’t necessarily always the case – and owning an electric vehicle can sometimes even work out cheaper. That said, the general trend is toward electric vehicle insurance being a little more costly.

How to Find Cheaper Electric Car Insurance?

Electric cars can be cheaper to insure than you might think if you take the right steps to reduce the overall costs of your insurance premiums. Here’s how to insure electric cars cheaper –

  • Steer clear of traffic violations, accidents, and collisions
  • Take advantage of electric car tax incentives offered by LTA and the Government here
  • Compare car insurance rates widely and wisely
  • Build up a dependable No Claim Discount (NCD)
  • See if you qualify for any Vehicle Emission Schemes here
  • Consider usage based insurance where you can pay per km
two asian men driving on the road taking selfie

How to Save Money by Switching from a Gas Powered Car to an Electric Car

While electric vehicle insurance can prove to be expensive, electrical vehicles in general can provide tons of great cost savings in other areas for those who are prepared to go green. On top of the obvious fuel efficiency savings, you can also take advantage of various Government incentives and schemes that ultimately make owning an electric car cheaper. Such schemes include:

1. The EV Early Adoption Incentive (EEAI) Scheme

You can potentially claim an Additional Registration Fee (ARF) rebate of up to 45% through the EEAI scheme. Total savings are capped at $20,000 and you can read more about the EEAI scheme on the LTA website here.

2. The Vehicle Emission Scheme (VES)

On top of this, those who qualify for the Vehicle Emission Scheme can claim rebates of between $15,000 and $25,000 on new cars, taxis and imported electric vehicles that are registered after January 2021.

3. Exemption from Additional Registration Fee (ARF)

Insurance rates might be on the high side for electric vehicles, but you can save money on your ARF for all new electric cars registered from January 2022 to December 2023. Cars registered between these dates will see ARF, the Singaporean tax charged on the Open Market Value (OMV) of new cars, reduced from $5,000 to an amazing $0.

Gas and Electric Car Insurance – Good Things to Know

Below we have listed some important FAQs regarding things you might want to know about electric cars and electric auto insurance in Singapore –

1. Do I Need to Insure Electric Cars?

Purchasing insurance in Singapore for any type of car is mandatory, so yes – you will need to get your electric vehicle insured if you plan on driving it anywhere in the city-state.

2. How Do I Find the Right Car Insurance Premiums / Companies for My Electric Car?

Not many insurance providers offer electric auto insurance right now in Singapore, but you can still use comparison websites and shop around online to narrow down your options. From Allianz Electric Motor Insurance to Liberty Insurance, most insurers can offer reasonable prices if you have lots of driving experience and a solid No Claim Discount (NCD) record.

3. What is the Average Cost of Electric Car Insurance in Singapore?

Typical electric vehicle insurance costs can range from $2,000 to $5,000 depending on your electric vehicle or hybrid vehicle type and model, driving experience, No Claim Discount (NCD) record and several other factors.

4. What Are the Road Tax Cost Differences Between Regular and Electric Cars?

While typical gas-powered cars usually incur road tax starting at around $700, road tax on electric vehicles starts from a much more reasonable $250.

5. How Do Major Servicing Costs Compare Between Regular and Electric Cars?

Major servicing and maintenance package costs on regular vehicles usually start at around $200 annually. By way of comparison, servicing an electric car could cost you anything from just $100 to $150.

6. How Does the Cost of Gas Compare to the Cost of Electric Vehicle Charging?

In recent years the cost of refuelling at gas stations across the city-state has been increasing. While most regular drivers can expect to pay around $500 per month to fill a typical 45-liter tank, EV charging can cost as little as $300 to $400 at current electricity rates.

7. How Much Does One Full Charge Cost?

On a typical electric car battery of 60 kWh, you would spend around $33 to get one full charge (at current electricity rates).

8. Where Can I Recharge My Electric Car?

There are several companies offering EV charging stations across Singapore. At the time of writing, BlueSG and ChargeNow by BMW have 300 and 318 charging stations in the city-state, respectively. Meanwhile, Shell Recharge has 87 and Tesla has 8. Just keep in mind that different model vehicles may have different charging requirements.

9. What Factors Determine the Cost of Insurance Premiums?

Your total car insurance premium cost can be influenced by several important factors, such as your age, marital status, what type of vehicle you drive, your occupation and NCD history, any Certificate of Merit (COM) discount you may be entitled to, and more. It can also depend on whether you’d prefer to pay annually, monthly or take out usage based insurance and pay per km.

Gas vs. Electric Car Insurance – Which is Best for You?

Whether you drive a traditional internal combustion engine car or a shiny new electric model, purchasing a car insurance policy in Singapore is mandatory – but how do you find the right insurance policy for you? When shopping around, don’t forget that:

  • An EV insurance policy will usually cost a little more than compared to a regular car insurance plan, but there is a lot you can do to reduce the overall cost.
  • A Toyota Prius, Nissan Leaf or regular electric car model will usually cost less to insure than luxury cars coveted by would-be Tesla owners.
  • The Singapore Green Plan is coming, so there’s never been a better time to go green, buy and insure an electric car.
  • Having a clean driving record, a decent No Claim Discount (NCD) and the right type of car can help you to save cash when purchasing electric vehicles insurance premiums.
  • The ultimate cost of owning an electric car compared to buying and running a traditional vehicle could work out cheaper if you take advantage of the various Singapore Government incentives that might be available to you.

Thinking of buying an electric vehicle but running short of cash? Loan Advisor offers an easy-to-use loan comparison service where you can compare loans from licensed moneylenders in Singapore in minutes. Get your free loan quotes today– no obligation to apply required.

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