BALTIMORE, Md. — The average price of gasoline has fallen 50 cents since Maryland curbed the state’s gasoline tax, but the gas tax exemption only lasts 30 days .
More and more people see electric cars as a way to save money, but alternative fuel cars also come with additional costs.
Buyers in the market for an electric car will need to think about more than make, model and where to plug in.
It’s fun to buy a new car, especially if you think it will help you save money, but buyers should consider the cost of car insurance for an electric car.
The cost of car insurance is often the last thing that comes to people’s minds when they toss the tires and go for a test drive.
These days, many drivers have had their eyes on hybrid and electric vehicles since the average gas price hit a high of $4.30 on March 11.
Lending Tree’s online marketplace Value Penguin found that insurance premiums for an electric vehicle can cost almost 25% more than a gas-powered version of the same car.
How much more or less depends on the type of car the buyer is currently driving, their driving history, and the type of coverage they choose.
Value Penguin analysts compared four mid-priced cars available in electric and combustion models: the Fiat 500 series, Ford Focus, Kia Soul and Chevy Spark.
Gas-powered versions of these cars all cost between about $13,000 and $25,000.
However, electric versions of these same vehicles cost thousands of dollars more, between $25,000 and $35,000.
With high-capacity batteries and sophisticated sensors, electric vehicles tend to be more high-tech and more expensive to repair.
Analysts say these higher costs lead to higher insurance premiums for electric cars, by around 23% on average.
For example, Value Penguin found that if your insurance premium for a gas-powered car was $1,000 per year, you could expect to pay between $1,200 and $13,000 per year for the electric version.
Just as buyers shop for a car, they will also want to shop for insurance.
Value Penguin found that price varied widely across the three companies surveyed for electric car pricing, ranging from 7% higher to 33% higher.
Buying an electric car has many advantages, in addition to not having to pay high gas prices.
For people who care about the environment, it is a clean energy car.
As for costs, Yahoo Finance notes that electric cars are more expensive to buy but cheaper to own in the long run, as drivers can save $14,500 in fuel over a 15-year period.