EVs: Everything You Need To Know

THE POWER TO BUY AN EV WITH CONFIDENCE

 
Interested in making the switch to an electric vehicle (EV)? We have all the answers to your questions.
 

Is insurance higher for an EV?

According to Lending Tree, the cost of car insurance for an EV is 25% more than its equivalent gas model. But this can be offset with low maintenance costs and tax incentives. Today, there is a big price range between the EV model and the insurance company you choose, so be sure to check with various insurance companies for EV-specific rates.

Are tires more expensive for EVs?

Tires on EVs need to be more durable due to heaviness of the battery, extra braking distance, and tread wear due to almost instant torque of the vehicle. You’ll be saving money on regular maintenance of the vehicle, which offsets the additional money you will pay for tires.

What is the wear and tear on EV brakes and brake pads?

It is recommended that EVs get a brake inspection after 5 years.  Regenerative brake pads (which use the energy from braking and turn it into electrical power and charges the battery when slowing down) wear away, but at a much slower pace than pads in traditional brakes. Traditional brakes wear down more quickly because they are not corrosion resistant, causing them to corrode and crumble faster.

How do I know the quality of the battery of a used EV?

It is suggested to take a fully charged battery for a test drive and check the range before and after the drive to evaluate the driving distance. For some manufacturers, a 30% decline in battery life is normal.

What is the life span of the original battery? Are they replaceable?

EV batteries typically last 10-12 years. Hotter climates as well as colder temperatures can affect the range, as well as using the a/c and heat. Replacement batteries can cost between $5,000 – $20,000. However, most manufacturers’ warranties cover the battery for 8 years/100K miles. Check out EFG’s MAP coverage for electric vehicles. It covers the battery!

What is the largest expense on an EV?

In general, EVs cost less to maintain than gas vehicles because there are fewer moving parts causing friction. Maintenance costs vary depending on the make and model of the vehicle and require some of the same maintenance as gas vehicles. After 8-10 years and after the manufacturer warranty runs out, the EV may need a battery replacement. A new battery can range from $5,000 – $10,000.

Are all EVs eligible for the tax credit?

No. According to the U.S. Department of Energy, The Inflation Reduction Act of 2022 amended the Qualified Plug-in Electric Drive Motor Vehicle Credit, now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. Visit https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit for more information.

EV vs ICE Maintenance (depending upon manufacturer)

Regardless of whether you own an EV or gas-powered, Internal Combustion Engine (ICE) vehicle, you’ll need to maintain it. But, what does maintenance look like for an EV vs an ICE?

Maintenance Item	EV	ICE	Both
Change oil/filter
Replace air filter
Replace spark plugs
Change rear axle fluid
Drain and fill coolant circuits
Battery coolant
Replace accessory belt drive
Tire rotation
Replace passenger air filter
Replace brake fluid
Coolant
Replace climate control air filter
12-volt battery check
Hydraulic brake fluid
HVAC refrigerants
Suspension (shocks, struts, and control arms)
Replace transmission fluid (for EVs with transaxles)