Are electric vehicles (EVs) expensive to insure?

An electric vehicle is totally beyond convention when it comes to motoring in the Philippine context. Technology is relatively new, and the charging infrastructure for electric vehicles (EVs) is just about to take “charge,” pun intended. As expected, it is normal for the market to ask many valid questions because ownership and lifestyle have to be adjusted when owning or buying an electric vehicle, especially at its higher price point.

One of those questions would pertain to insurance. Luckily here at AutoDeal, our Car Insurance Calculator can get estimates and quotes for electric vehicle protection, including pricing options from various insurance companies such as Mapfre, FPG Insurance, Malayan Insurance, and Fortune General.

We have covered this in our past articles. To reiterate, you can choose between standard third-party liability or TPL insurance. However, investing in a comprehensive policy for full coverage and peace of mind is advised, especially when owning a more premium vehicle.

It is also of note that all figures stated are estimates of the prices as displayed by our Car Insurance Calculator, and are updated regularly, so do check for the actual rate on our insurance calculator itself. The vehicles in this list that were used as examples may also experience price changes over time, which could affect the result of our calculator.

Generally, EVs can be more expensive to insure than traditional gasoline vehicles because of their higher price point compared to standard internal combustion engine (ICE) vehicles. Additionally, some insurance companies may have less experience with EVs, which can lead to higher premiums, especially here in the Philippines, where the entry of EVs is still new. 

Vehicles such as the all-electric Nissan LEAF can have premiums of about P42,000 to P47,000 per year depending on coverage and insurance company, which is considerably more than ICE vehicles of a similar category, and is similar to ICE vehicles of a higher class range. A great example of a similar category would be the Mazda 3 hatchback, wherein the top of the line model would get premiums of about P35,000 to P39,000 per year. An example of a vehicle with higher class range would be the Mazda CX-5, wherein premiums can cost from about P48,000 to P54,000 per annum, which yes is a little more expensive, but is also an overall larger vehicle and a higher vehicle category as well. 

Do keep in mind that the insurance rates scale with the price of the vehicle, and since EVs are also more expensive than their regular ICE counterparts, they are generally much more costly to insure, and are at par in insurance costs with higher-category ICE vehicles. It is also important to note, that the Nissan LEAF has just had a price reduction recently, so insurance companies are yet to adjust insurance premiums still to match the new price point.

As it stands, we are still yet to get the lower insurance rates that the North American and European Union markets enjoy thanks to government support, but with the entry of the Electric Vehicle Industry Development Act (EVIDA), we could probably see these rates lower sooner rather than later to entice car buyers further to consider an EV as their next vehicle of choice. We just have to wait and see.