Exploring the Benefits of Eco-Friendly Insurance Policies for EV Owners

With electric vehicle (EV) ownership steadily rising across Australia, there’s naturally an increase in demand for insurance policies made specifically to support EV owners.

In this day and age, there are many companies that offer comprehensive EV insurance policies. These insurance policies differ from traditional car insurance policies by including add-ons that support EVs specifically, such as battery replacement coverage and charging port coverage.

Moreover, a sizeable portion of these insurance policies fall under the “eco-friendly” label, promoting sustainability practices and green initiatives that help keep the environment and community clean and green.

There are a lot of benefits both owners and the environment can get by choosing eco-friendly insurance policies. Let’s take a look at eight of these unique perks in more detail.

Policy Comes With EV Specific-Equipment Coverage

Many eco-friendly insurance policies will be beneficial for EV owners as the vehicle emits zero harmful emissions when in use. 

This means that you won’t have to wonder whether an eco-friendly insurance provider has a compatible plan for your EV. This insurance policy is specifically made with electric vehicles in mind.

With that being the case, a lot of the coverage provided by eco-friendly insurance tends to align with standard EV insurance policies. One particular coverage option for eco-friendly insurance policies that’s notable is coverage for EV-specific parts.

Distinct EV parts like charging stations, adapters, and batteries are all covered under this insurance policy. So if any of these parts break or malfunction over their lifetime, and assuming that the policy is active, owners can be properly compensated for the damages depending on the nature of the claim.

With these parts of the vehicle being among the most expensive (particularly the battery, costing up to $30,000 to replace), having coverage for these items gives owners peace of mind to and helps them avoid any exorbitant expenses.

Positively Contributes to the Environment

Another benefit of eco-friendly insurance policies is the fact that the insurer supports the green cause. Eco-friendly insurers are specifically committed to low-emission driving, and they often have a reward system in place to incentivise their policyholders to opt for energy-efficient practices.

For EV owners, simply driving more miles in the car is a good start—as it means you’re spending less time driving a smoke-exhausting vehicle. Eco-friendly insurers have varying carbon offset programs, so it’s a good idea to clarify and do your research on each one to know the degree of their commitment to the environment.

Furthermore, these insurers also often have back a lot of green initiatives beyond their business model, such as funding charities that support stopping climate change. 

There are many reasons why such a cause can be impactful to the environment, and if you want to support this cause, then simply picking this insurer over the rest can be a slight but helpful negation in your carbon footprint.

Fire and Explosion Protection

Beyond the characteristics of an eco-friendly insurance policy is the base insurance policy itself. 

And if an incident occurs that requires an insurance claim, having a policy ready can be crucial to quickly getting the coverage you need. One possible event that may occur is a fire. Fires can happen when you collide, are a victim of arson, are in a wildfire, or are in the event of a battery malfunction. 

In any case, a burning electric vehicle can lead you to spend some serious money to pay for major repair costs. The total cost would likely exceed the cost of fixing a gas car in the same situation due to the inherent higher cost of the vehicle itself.

An insurance policy helps you remain financially resilient in the event of a car fire. You can make a claim and get your car fully patched up depending on the terms of your insurance policy. This helps you save thousands of dollars on repair and replacement damages.

Collission Protection

Another benefit of this insurance type is the fact that it could pay off damages in an accident regardless of who’s at fault. 

It doesn’t matter whether you bumped into a vehicle, got bumped yourself, skidded on the road, or bumped into an object yourself. This protection—which can be found in comprehensive eco-friendly insurance—helps financially support you in case you’ve encountered this type of accident.

Eco-friendly insurance policyholders also tend to have higher coverage than other variants because these policies typically take into account the EVs high costs for repair. If your EV is badly damaged but you have insurance for it, you can get back on the road quickly and with no financial setback thanks to this insurance policy.

Protection Against Crimes

Electric vehicles tend to be more expensive on average than gas-powered cars. This makes them more attractive in the eyes of criminals looking to get a quick buck through devious means.

Even if you’ve done all you can to keep your vehicle safe, there’s a non-zero chance for a crime involving your vehicle to occur. To give you peace of mind, having an insurance policy can help a tonne.

Crime protection from this insurance policy typically protects you from cases of theft and vandalism damages, whether they’ve actually occurred or not. The protection also extends to accessories and charging equipment. 

When you make claims for these events, you can get your money back to replace or repair stolen parts up to the coverage listed in your contract.

Protection Against Natural Disasters

Another perk of an insurance plan is coverage for damages caused by natural disasters. 

It’s no secret that climate change and constant emissions from various industries have exacerbated the intensity and frequency of abnormal weather patterns across the globe. And even if you’re committed to the green cause, it’s still an uphill battle.

As a silver lining, this eco-friendly insurance policy protects your vehicle in case these events occur and break your car. It covers the entire gamut of natural disasters up to your coverage limit, from floods and hailstorms to earthquakes.

This coverage is especially useful for electric vehicles since they’re quite sensitive to poor weather conditions, including intense heat and cold weather. With the proper insurance policy, you’ll have peace of mind knowing that your car and finances are protected from environmental risks.

Access to Government Grants and Special Discounts

Some eco-friendly insurers give special discounts to drivers who can provide evidence that they’re driving with the environment in mind.

One way drivers can achieve this discount is by using a telematics device to track driving data like GPS position and speed. This is particularly useful for hybrid EVs (or PHEVs) since it can give a clear glimpse of when fuel or battery has been used. ROLLiN’ Insurance breaks down the difference between PHEVs and BEVs in more detail.

Furthermore, some discounts can also be given by government bodies through grants as a way  to incentivise drivers to buy a green car. These grants can fund recurring costs such as insurance repayments—helping keep your finances in check as you pay off your car.

Lower Premiums 

Premiums for eco-friendly insurance policies may be lesser than traditional EV insurance because of a variety of reasons.

For one, eco-friendly policies tend to shift a large part of their focus on their commitment to the environment. This may cause them to want to remain competitive among other adjacent policies, which can cause them to decrease their premiums and make it more affordable to all.

Secondly, if you’ve demonstrated a commitment to driving in an eco-friendly manner in the past, you may be able to renegotiate your premium rate to a lower amount depending on the flexibility of your insurer. This, of course, depends on the structure of the insurer themselves.

While you won’t always be beating the price of a traditional car insurer, you can go below the price of an EV insurer without a visible commitment to eco-friendly practices. And this can make a difference in your finances in the long run.