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With lesser mechanical parts and alternative charging options, an electric car may be cheaper to maintain - but what about insuring them?
Category: Car Ownership Advice
Electric cars are up and coming in Singapore. With the government announcing plans to stop the sale of internal combustion engine powered cars by 2040, along with better incentives over the years, we will slowly see more Electric Vehicles (EVs) plying our roads.
From the get go, EV maintenance is cheaper and easier compared to petrol cars. With lesser moving parts thanks to the lack of an internal combustion engine, the main wear and tear components are generally limited to only your tyres and brakes.
The equivalent range offered per charge is significantly cheaper than a petrol car's tank of fuel. It might sound inconvenient and requires a little change in routine, but there are savings to be had.
But there is another element of upkeep that needs to be considered - car insurance, and the yearly renewals that follow.
So, just how much difference is there when it comes to insuring an electric car? Is there a cost difference between an EV versus a petrol car when it comes to car insurance? We find out.
Are EVs more expensive to insure? Why?
There are logical reasons as to why insurance for electric cars can cost more.
First is the outright cost of the car. EVs generally cost more to manufacture, and in Singapore, also cost more than their equivalent petrol models and segment peers.
A general rule of thumb is if the value of the car is more, it can get more expensive to insure. This applies also to petrol cars.
While wear and tear components are lesser, the cost to replace certain parts of the vehicle should be considered, especially in an accident.
Electric components such as the battery and motor require special tooling and training. While you might not damage such components in an accident, even bumpers and body panels may sport design differences compared to its petrol-driven variants. These items may not be commonly stocked, and require to be shipped in.
All these things are taken into account. But there are other factors when it comes to car insurance. Things such as your profile, driving experience and No-Claims Discount (NCD) also matter.