Purchasing an electric car can represent a major investment. It’s crucial to get appropriate auto insurance to help provide financial protection.
Contact the Meyer Group in St. Louis, Missouri, to get help building an auto insurance policy tailored to meet your needs.
What Insurance Is Required for Electric Cars?
Electric car insurance must comply with Missouri’s minimum auto insurance standards. Your policy must include minimum amounts of auto liability coverage to help pay for third-party property damage and bodily injuries after an at-fault accident.
If you financed or leased your electric vehicle, your lienholder requires full coverage insurance, which includes comprehensive and collision coverage. This policy helps pay to repair or replace your electric car after an accident or incident causing damage to the vehicle, such as a collision with another vehicle, object or animal, theft, vandalism or weather damage.
Replacement Cost Vs. Actual Cash Value Coverage for Electric Cars
When you purchase full coverage insurance, you may be able to choose between replacement cost (RC) and actual cash value (ACV). If your vehicle is stolen or damaged beyond repair, your insurer deems it a total loss, then provide a settlement according to the terms of your policy.
The amount of money you receive depends in part on whether you have RC or ACV coverage, which are defined as follows:
- Replacement cost provides a settlement designed to replace your property without deducting any amount for depreciation.
- Actual cash value provides a settlement equal to the item’s value minus depreciation. This coverage does not replace your vehicle. It reimburses you for the vehicle’s current value.
ACV coverage might be less expensive than replacement cost, depending on numerous factors. Your agent can help you understand how each type of coverage may affect your settlement if your electric vehicle is a total loss.
Gap Insurance for Electric Cars
Gap insurance helps pay the difference between your insurer’s settlement if your car is a total loss and the total amount due on your loan or lease. Your lender may require this coverage.
Depending on your situation, your agent may recommend adding gap coverage. The dealership may also offer this insurance when you purchase or lease your electric vehicle. However, adding gap coverage to your current auto insurance policy may be less expensive. Your agent can help you get personalized quotes.
How to Get Electric Vehicle Insurance
Contact the Meyer Group today to learn more about auto insurance policies to help provide appropriate coverage for your electric vehicle.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.