Thinking about purchasing an EV but unsure what will be the cost for its insurance? You may be surprised to learn that one of the benefits of buying an electric vehicle is that you can now avail of a reduced car insurance premium. Plus if you are purchasing it as a business vehicle, there could be even more savings to be made.
Massive Increase in the Number of Electric Car Registrations
Over the last two years, there has been an undeniable upward trend in the purchase of electric vehicles. Figures from the Irish Motor Industry (SIMI) show a 542% increase in the number of electric car registrations in Ireland in the first two months of 2019. Up to the end of February 2019, 1,129 electric cars were registered; that’s nearly as many as the total number of registrations in 2018 (1,233 registrations). The shift toward electric cars is happening!
Benefits of Electric Cars
Not only can driving an electric vehicle lower your insurance premium, it also carries a very wide range of monetary benefits including:
- Reduced running costs
- €120 motor tax band for electric vehicles
- Reduced fuel costs
- Positive environmental benefits
- A government grant of up to €7000 for the purchase of the vehicle
- Reduced toll charges on the M50 Motorway under the Electric Vehicle Toll Incentive scheme (EVTI)
A common anxiety associated with driving electric is that it will run out of power in an area which is not near any charging points. But the Government is continuing to increase the availability of fast charging points across Ireland as well as a grant of up to €600 towards a home charging point. With the range of a new electric vehicle (for example a Nissan Leaf) being up to 270km, the network of electric charging points across the county and Ireland being a small island, you are unlikely to be stuck without power.
Personal Electric Car Insurance
At Insuremycars.ie, we have seen a huge increase in demand for car insurance quotes for EV and have responded by negotiating a special discount with insurers for EV drivers. This can make electric car premiums up to 10% cheaper than petrol or diesel car ones.
So, as well as the benefits of cheaper running and fuel costs, you can now save on your insurance premium. Although the initial purchase expense can be more than initially expected, you will save money in the long term by going green.
Available Electric Vehicle Insurance Policy Benefits:
- Breakdown Assistance including out of charge cover
- Windscreen Cover
- Driving of other cars
- Car replacement in the event of accident
- Step back bonus protection
- Full bonus protection
Business Owner & Company Car Insurance for EV
The purchase of an electric car for your business could mean great savings. A new initiative introduced by the Department of Finance means that an electric vehicle up to the value of €50,000 can be purchased as a 0% Benefit In Kind. As of 1 January 2018, no taxable benefit will arise for an employee or a director, where an employer provides an employee or director with an electric car or van.
But while this is a great initiative, we found that business owners were running into a costly obstacle when insuring the vehicle. Business owners who opted to switch to a company electric vehicle had to take out a brand new insurance policy through the company – with zero no claims bonus.
Insuremycars.ie have responded to this issue by negotiating with insurers to allow the existing private car policy of a business-owner to be used for their new company electric car. So, if the vehicle is still used privately, you cant transfer your bonus into your business name and save on your premium.
There are so many advantages to the purchase of an Electric Car in 2019, both financial and environmental. While the purchase cost may seem substantial, it is an investment worth making. You are guaranteed to save money in the long run. Not to mention, you’re playing your part in preserving the environment.
