A whopping 75% of leased EV owners overpay for insurance, with some policies costing upwards of $2,500 per year. Sound familiar? That's because dealers often push for expensive, comprehensive coverage that you might not need.
WARNING — Don't Fall for Dealer Requirements
Dealers love to bundle insurance with the lease, promising convenience and peace of mind. But what they don't tell you is that these policies are often overpriced and unnecessary. Take the Tesla Model 3, for example — a popular lease option. You can expect to pay around $1,800 per year for insurance, but that's if you go with the dealer's recommended policy. Shop around, and you can find similar coverage for $1,200 per year or less. Know what the kicker is? You don't need all the bells and whistles they're selling.
You can save by opting for a more basic policy that still covers you for EV road trip insurance. And don't even get me started on the BMW iX — that thing is a money pit when it comes to insurance.
We've seen quotes as high as $3,000 per year for a leased BMW iX, but with some digging, you can find better deals. The key is to understand what you actually need and not just blindly follow the dealer's recommendations.
OK So Here's the Deal With EV Road Trip Insurance
When you're planning an EV road trip, insurance is crucial. You want to make sure you're covered in case something goes wrong, but you also don't want to break the bank. The Hyundai Ioniq 5 is a great example of an EV that's perfect for road trips, with its impressive range and features. But when it comes to insurance, you'll want to shop around for the best deal.
Some companies, like Geico, offer specialized EV insurance that can save you up to 20% on your premium. Others, like Progressive, offer discounts for low-mileage drivers or those who drive electric vehicles. It's all about finding the right policy for your needs and budget.
And let's not forget about Rivian — those trucks are beasts, and their insurance premiums can be too. But with the right policy, you can enjoy your EV road trip without worrying about the cost.
Pro tip: Always check the policy's fine print for any exclusions or limitations on EV road trip insurance. You don't want to be stuck with a bill you can't pay because you didn't read the small print.
7 Things to Consider for Leased EV Insurance
When it comes to leased EV insurance, there are a few key things to keep in mind. First, you'll want to make sure you understand the terms of your lease and what insurance is required. Then, you can start shopping around for policies that meet those requirements.
Some things to consider include the vehicle's value, your driving history, and the level of coverage you need. You may also want to look into additional coverage options, like gap insurance or roadside assistance.
And don't forget to ask about discounts — many insurance companies offer discounts for things like good grades, military service, or low mileage. For example, if you're a student with good grades, you may be eligible for a discount of up to 15% on your premium.
The Story of How I Saved $800 on My Leased Tesla
I'll never forget the time I leased a Tesla Model Y and got taken for a ride by the dealer. They tried to sell me a policy that would have cost me over $2,000 per year, but I did my research and found a better deal.
I ended up going with a policy from USAA that cost me $1,200 per year — a savings of $800. That's a lot of money, especially when you're on a budget.
The key is to be patient and persistent, and don't be afraid to walk away if the deal isn't right. Wild, right? You can save that much money just by doing your homework.
MYTH BUST — You Don't Need Full Coverage for Leased EVs
One of the biggest myths out there is that you need full coverage for leased EVs. But the truth is, you may not need all that coverage.
In fact, if you're a low-mileage driver or have a good driving record, you may be able to get away with a more basic policy. And that can save you a lot of money — we're talking hundreds or even thousands of dollars per year.
Of course, it depends on your individual situation, but it's definitely worth exploring your options. And don't just take my word for it — do your own research and see what you can find.
FAQs
#### What is the average cost of insurance for a leased EV?
The average cost of insurance for a leased EV can vary widely depending on the vehicle, your driving history, and other factors. However, you can expect to pay anywhere from $1,000 to $3,000 per year.
#### Do I need full coverage for my leased EV?
Not always — it depends on your individual situation and the terms of your lease. But it's worth exploring your options to see if you can save money by opting for a more basic policy.
#### Can I get a discount on my EV insurance?
Yes, many insurance companies offer discounts for things like good grades, military service, or low mileage. Be sure to ask about any discounts you may be eligible for.
#### What is gap insurance, and do I need it?
Gap insurance is a type of coverage that pays the difference between the actual cash value of your vehicle and the amount you still owe on your lease if your vehicle is stolen or totaled. Whether or not you need it depends on your individual situation, but it's definitely worth considering.
#### How can I save money on my EV road trip insurance?
One way to save money is to shop around for policies and compare prices. You can also look into discounts and consider opting for a more basic policy if you don't need all the bells and whistles.
#### What is the best insurance company for leased EVs?
There are many great insurance companies out there, but some of the best for leased EVs include Geico, Progressive, and USAA. Be sure to do your research and compare prices to find the best deal for your needs and budget.
Happy driving, and don't overpay! — Alex