Why Is Electric Van Insurance More Expensive?

September 27, 2023

The market for electric vehicles is growing at an impressive rate, and so is the demand for electric vans. Not only does an electric van give you more freedom, but it also allows you to make our world a better place.

Lower running and maintenance costs, no tailpipe emissions, simpler driving — the pros of owning an electric van are immense, but the cons are also present: higher prices for electric vans and more expensive electric van insurance.

Speaking of which, electric van insurance is a legal requirement in almost all states, so you have no other choice but to learn everything about it. 

Read on to uncover more knowledge regarding electric van insurance.

What Is an Electric Van?

An electric van uses an electric motor for power, instead of the internal combustible engine in gasoline-powered cars. Electric vans are more expensive than traditional gas- or diesel-powered vans because of costly battery packs and cutting-edge technologies.

Why Buy an Electric Van?

  • Cheaper to run and maintain. Although over 90% of all vans are diesel-powered, electric vans are more affordable to run and maintain. An electric van can save you at least a few thousand dollars on fuel and maintenance over its lifetime.
  • Eco-friendly. Electric vans are perfect for urban areas with low air quality. It will make you feel environmentally conscious and – if you are using your van for business – can even improve your brand image.
  • Easy to drive. With instant torque and no need to change gear, electric vans are easier to drive than diesel-powered analogs. In addition, electric motors are less noisy.

Many governments provide incentives to encourage eco-friendly driving. Electric cars are exempt from road tax in some countries and eligible for multiple discounts.

What Does Electric Van Insurance Cover?

Most electric van insurance policies provide the same coverage as standard auto insurance:

  • Liability coverage: bodily injury, property damage liability, and uninsured/underinsured motorist coverage.
  • Vehicle coverage: collision, comprehensive, and underinsured/uninsured motorist coverage.
  • Other coverage: medical payments, personal injury protection, gap coverage, etc.

However, since electric vans do pose extra risks, there are two more optional coverages you may need:

  • Fire coverage – pays for the damage to the building if your electric van catches fire during charging (depending on where the fire started, your homeowners policy may also be required).
  • Power cable and tripping coverage – pays other people’s expenses if someone trips over the van’s power cable during charging.
  • Battery cover – special coverage for owners of vans who lease the battery.

Why Is Electric Van Insurance More Expensive - 1

Note that electric van insurance coverage also depends on the country. For example, in the United Kingdom, there are three common insurance policies for electric vans:

  • Third-party only – damage to other people and their vehicles.
  • Third-party, fire, and theft – encompasses third-party coverage and protection of your vehicle from damage caused by fire and theft.
  • Comprehensive – encompasses third-party, fire, and theft coverage and repair costs if your vehicle is damaged in an accident.

How Much Is Electric Van Insurance?

The cost of electric van insurance depends on the state, make/model of the van, age, battery size, whether the van is electric or hybrid, whether you own a single or a few vans, and whether you are eligible for bonuses, among other factors. Electric van insurance is usually more expensive than insurance coverage for diesel-powered vehicles, but it’s getting cheaper as more and more people choose electric cars over gas analogs.

Why Is Electric Van Insurance More Expensive?

Electric van insurance is more expensive for two reasons:

  • Electric vans are more expensive than diesel vans due to cutting-edge technologies and high-cost electric batteries. However, some companies allow leasing the battery pack to lower the cost of the van.
  • Repairing electric vans requires high skills and special training, leading to a shortage of electric van mechanics on the market.

That said, the price difference is usually not higher than 20%.

How to Save on Electric Van Insurance?

There are several ways to save on electric van insurance:

  • First of all, you are eligible for all standard auto insurance discounts, including discounts for bundling homeowners/renters and auto insurance policies, safe driving, having multiple cars on a policy, installing anti-theft devices, and more.
  • Secondly, as an electric car driver in the United States, you are eligible for a federal income tax credit of up to $7,500.

In general, though, exclusive discounts on electric cars are not too widespread. However, don’t forget that maintaining an electric van is cheaper than maintaining a diesel-powered vehicle.

Best Electric Van Insurers in the United States

Most mainstream insurance providers offer electric car insurance covering vans. For example, Liberty Mutual offers discounts for hybrid and electric cars. The other mainstream auto insurers that can offer you a decent electric van policy are Nationwide, USAA, Allstate, Progressive, and State Farm. However, if you own a rare make or model of an electric van, then you may need a specialist provider.

Why Is Electric Van Insurance More Expensive


Is Electric Van Insurance Mandatory?

Electric van insurance is mandatory in all U.S. states barring Virginia and New Hampshire. In these two states, you will be responsible for compensating for all property damage and bodily injuries caused in an at-fault accident. In Virginia, you will also have to pay an uninsured motor vehicle fee of $500 in order to drive.

How to Find the Best Electric Van Insurance?

The only way to find the best insurance policy for you is to research as many providers as possible, including Allstate, Liberty Mutual, Nationwide, Progressive, State Farm, and USAA. When choosing your policy, consider what type and how much insurance you need, your budget, and your risk tolerance.

What Is Commercial Van Insurance?

Commercial van insurance is a policy that covers a van used for commercial purposes (private vans, public vans, school vans, etc.).
Commercial vas insurance usually reimburses for:
Damage caused to the van in an accident
Theft, fire, and natural disasters
Personal injuries or death
Third-party damage and losses
Towing expenses

How Much Is Road Tax for an Electric Van?

There’s no road tax for electric vans.

Why Is Electric Van Insurance More Expensive? 3

Oleksandr Rohovnin is a Content Marketer at Phonexa.com and an expert contributor to CoverExplore. His passion is digital marketing, innovative technologies, tech industries, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At CoverExplore, Oleksandr stokes passion for auto insurance and the automotive industry in general in every story he curates.