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President Joe Biden just announced that by 2030 he wants at least 50% of the cars sold in the U.S. to be electric vehicles.
Right now, relatively few of the cars on U.S. roads are electric. They make up only about 3% of new car sales, and Tesla accounts for 55% of those transactions.
Why haven’t more people switched from gas-powered cars to EVs? Would-be buyers often cite concerns about running out of power and not having access to a car-charging station. Higher initial upfront costs for electric cars cause people to pause as well (many of those new Teslas cost over $70,000).
According to AAA, owning a brand-new, small electric car costs only around $600 extra per year than a comparable gas-powered model. Electric vehicles have reduced expenses in some categories like gasoline and maintenance even though their overall prices are higher.
Gasoline costs an average of $546 for a compact electric vehicle to travel 15,000 miles annually, compared to $1,255 (or 130%) more for a gas-powered vehicle to cover the same distance.
Electric vehicles don’t need oil changes or air filter replacement, thus they don’t need as much maintenance as gas-powered vehicles do. Electric automobiles cost $949 less yearly ($330 less than a gas-powered car) if maintained in accordance with the automakers’ guidelines.
Costs Of Owning An Electric Car
Owning an electric car can seem like a great way to reduce your carbon footprint and save on fuel costs. However, there are hidden costs associated with electric cars that can add up over time. In this article, we will Uncover the true hidden costs of owning an electric car, from charging station installation fees to maintenance and repair costs, and provide tips on how to navigate them.
The Hidden Costs Of Owning An Electric Car
To understand how the hidden costs of an electric vehicle stack up, it helps to look at the big picture of how electric cars work.
Powering an electric vehicle isn’t as simple as plugging it into a wall socket. Instead, it relies on a network of charging stations where electricity is stored to power the car’s electric motor.
These charging stations are often installed in public places like gas stations and shopping malls. Many stations also have fast-charging capabilities that can charge your car in as little as 30 minutes. For homes, you can also install a charging station that connects to an electrical socket and can charge your car overnight.
Although these charging stations are starting to become more common, the infrastructure to get these cars on the road is in its infancy. This means that charging stations may be difficult to find or may require special memberships to access. Installing a charging station at home can cost up to $10,000, while public stations are cheaper to install but still require membership charges.
These memberships are often included in the upfront cost of the car itself. However, these charges can add up over time. For example, some automakers charge $50 a year for access to public charging stations or $250 a year for access to private stations.
These are just some of the hidden costs that can add up for car owners, and they’re not nearly as cheap as you might think. The table below shows other costs to consider:
Insuring An Electric Car
The popularity of electric cars has grown in recent years, and this popularity has given them more mainstream appeal. As a result, their insurance costs are coming down as well. Car insurance companies are beginning to realize that insuring electric cars is safer than insuring gas-powered cars.
However, there are still some hidden costs associated with insuring an electric car. For example, some policies may not cover certain damages that might occur if you drive the car while plugged into a wall socket.
Car insurance can be more affordable with a garage compared to without a garage. Having a garage provides a safe and secure place to store your vehicle, which can reduce the risk of theft, vandalism, and weather damage. As a result, insurance companies may offer lower rates for vehicles that are stored in garages.
However, the impact of having a garage on your insurance rates can vary depending on the insurance company and other factors, such as your driving record, the type of vehicle you own, and the level of coverage you choose.
It’s best to compare quotes from multiple insurance companies to find the best coverage at the most affordable rate, regardless of whether your vehicle is stored in a garage or not.
A recent survey on the state of electric car insurance found that the average premium for fully comprehensive coverage was $1,774 a year. This premium included comprehensive collision coverage and a roadside assistance plan.
While this is cheaper than the average insurance premium for gas-powered cars, the premium is still much higher than most other cars on the market.
Cost Explanation
| Advantages/Disadvantages | Explanation |
|---|---|
| Maintenance | EVs have fewer moving parts than gasoline vehicles, but they require specialized knowledge to fix, which can be more expensive. |
| Charging equipment | Installing a home charging station can cost several hundred dollars. |
| Charging costs | While EVs are cheaper to charge than filling up with gasoline, charging costs can add up over time, especially if you don’t have access to free charging. |
| Battery replacement | The battery is the most expensive component of an EV and will eventually need to be replaced. |
| Insurance | Insurance for EVs can be more expensive than for gasoline vehicles due to the higher cost of repairing or replacing the battery and other components. |
| Resale value | Although EVs are becoming more popular, they still have lower resale value than gasoline vehicles due to limited demand and concerns about battery life. |
It’s important to keep these costs in mind when evaluating the overall cost of ownership of an electric vehicle.
So, Is An EV Worth It?
Does an electric car make sense for you? The answer depends mostly on where you live and what type of vehicle you need. If you live in an area with plenty of charging stations and you don’t mind having to charge your car at home every night, then an electric vehicle is definitely worth considering.
However, if you live in an area with only a small number of charging stations and charge your car overnight at work or at a public charging station on a frequent basis, then an electric vehicle probably isn’t your best option.
The Pros and Cons of Electric Cars
| Pros | Cons |
|---|---|
| Suitable for short distance driving | Not cost-effective for heavy users |
| Low maintenance costs | Can be expensive to purchase |
| Convenient in areas with charging infrastructure | May require additional insurance |
| Can go up to 300 miles on a single charge | May not be ideal for those without access to charging stations |
| Less susceptible to breakdowns | Can be a challenge to trade in a current car |
In conclusion, the pros and cons of electric cars depend on individual driving habits, access to charging infrastructure, and personal financial situation. While electric cars are suitable for those who drive short distances and live in areas with convenient charging options, they may not be the best choice for those who drive frequently or have limited access to charging stations. Ultimately, the decision to purchase an electric car should be based on a careful evaluation of your specific needs and circumstances.
