Electric Vehicle Insurance in Cerritos - What EV Owners Need to Know

Electric vehicles are everywhere in California. Teslas line Cerritos streets, Rivians fill parking lots, and Chevy Bolts charge at shopping centers. With gas prices, environmental concerns, and impressive technology driving adoption, EVs are becoming mainstream.

But there's one aspect of EV ownership that surprises many buyers: insurance costs and coverage requirements are different—and often more expensive—than traditional vehicles.

If you're driving an EV or considering buying one, understanding insurance is critical. The wrong coverage can leave you with massive out-of-pocket costs after an accident, while overpaying for unnecessary coverage wastes money on already-expensive vehicles.

Let's break down everything Cerritos EV owners need to know about insuring their electric vehicles.

How EV Insurance Differs from Traditional Auto Insurance

At first glance, EV insurance looks similar to traditional auto insurance—you still need liability, collision, comprehensive, and other standard coverages. But several factors make EV insurance unique:

1. Higher Vehicle Costs

EVs generally cost more than comparable gas vehicles:

• Average new EV price: $55,000-65,000

• Average new gas vehicle price: $48,000

• Tesla Model 3: $40,000-55,000

• Tesla Model Y: $45,000-65,000

• Rivian R1T: $73,000-87,000

• Lucid Air: $87,000-179,000

Higher vehicle value = higher comprehensive and collision premiums. You're insuring a more expensive asset, so expect to pay more.

2. Expensive Repairs

EV repairs cost significantly more than traditional vehicles:

Why repairs are expensive:

• Fewer mechanics trained to work on EVs

• Specialized parts (often must come from manufacturer)

• Complex technology requires dealer service

• Battery damage can total the vehicle

• Advanced safety systems are costly to recalibrate

• Aluminum bodies (common in EVs) cost more to repair than steel

Real example: A minor fender bender on a Tesla Model 3 that would cost $3,000 to repair on a Honda Accord costs $8,000-12,000 on the Tesla due to sensors, cameras, and specialized parts.

3. Battery Coverage Concerns

The battery is the most expensive component of an EV—often $10,000-20,000 to replace.

Key questions:

• Is battery damage covered under collision?

• Is battery degradation over time covered? (Usually no)

• If the battery is damaged but the car isn't totaled, will insurance pay for replacement?

• Does your policy cover the full cost of a replacement battery?

Most standard auto policies cover battery damage from an accident under collision coverage. However, normal battery degradation (capacity loss over time) is not covered—that's a maintenance issue, not an insurable event.

4. Charging Equipment Coverage

Home charging equipment adds another insurance consideration:

• Level 2 home charger: $500-2,000 to purchase and install

• Portable chargers: $300-600

• Solar panel integration: $5,000-20,000

Coverage questions:

• Is your home charger covered under homeowners insurance?

• What about damage from power surges?

• Is theft of charging equipment covered?

• Are you covered if your charger damages your electrical system?

Typically, permanently installed home chargers are covered under homeowners insurance as part of your dwelling or other structures coverage. Portable chargers may be covered under personal property. Verify this with your insurer.

5. Range Anxiety and Towing Coverage

EVs have limited range, and running out of charge isn't like running out of gas:

• You can't just walk to a gas station with a gas can

• Towing must be to a charging station, not just the nearest service station

• Some tow trucks damage EVs if not handled properly

Towing coverage considerations:

• Does your policy include towing to charging stations?

• What's the towing distance limit? (Need enough to reach a charger)

• Does your carrier have EV-trained tow providers?

Many EV manufacturers include roadside assistance for a period of time. After that expires, ensure your auto policy includes adequate towing coverage—ideally unlimited miles within your service area.

EV Insurance Costs: What to Expect

Let's address the big question: How much more expensive is EV insurance?

Average Cost Comparisons

According to insurance industry data:

National averages:

• Tesla Model 3: $2,200-3,000/year

• Tesla Model Y: $2,400-3,300/year

• Chevy Bolt: $1,600-2,200/year

• Ford Mustang Mach-E: $1,800-2,500/year

• Nissan Leaf: $1,300-1,900/year

Comparable gas vehicles:

• Honda Accord: $1,400-1,900/year

• Toyota Camry: $1,300-1,800/year

• Ford Escape: $1,500-2,100/year

The reality: EV insurance is typically 15-40% more expensive than comparable gas vehicles, depending on the make, model, and your specific situation.

Why EVs Cost More to Insure

Several factors drive higher EV insurance costs:

1. Higher vehicle value: More expensive to replace = higher premiums

2. Higher repair costs: Average EV repair is 30-50% more expensive than comparable gas vehicles

3. Theft rates: Teslas are among the most stolen vehicles in California (particularly Model Y and Model 3)

4. Limited repair options: Not all body shops work on EVs, driving up costs

5. Total loss frequency: Even minor damage can total an EV if the battery is affected

6. Technology complexity: Advanced driver assistance systems, cameras, and sensors are expensive to repair or replace

Factors That Affect Your EV Insurance Rate

Just like traditional vehicles, several factors influence your EV insurance cost:

Vehicle-specific factors:

• Make and model (Tesla typically most expensive to insure)

• Purchase price and vehicle value

• Safety ratings

• Theft rates for that model

• Repair costs

• Battery size and replacement cost

Driver-specific factors:

• Age and experience

• Driving record (accidents, violations)

• Credit score (in states where allowed)

• Annual mileage

• Where you park (garage vs. street)

• Location (urban vs. suburban)

Coverage factors:

• Liability limits

• Deductibles

• Optional coverages (rental, roadside, gap insurance)

• Bundling with homeowners insurance

California-specific note: California is one of the few states that limits the use of certain rating factors, which can help some EV buyers get more competitive rates.

Essential Coverage for EV Owners

Here's what coverage Cerritos EV owners should have:

1. Comprehensive Liability Coverage

Recommended minimum: 100/300/100

• $100,000 per person for bodily injury

• $300,000 per accident for bodily injury

• $100,000 for property damage

Why this matters: EVs are high-value vehicles often driven by individuals with significant assets. If you cause a serious accident, California's minimum liability limits (15/30/5) are dangerously inadequate.

Better option: 250/500/100 or $500,000 combined single limit

Best option: $1M+ with umbrella policy

Given that you're driving a $50,000-80,000 vehicle, you likely have assets worth protecting. Your liability coverage should reflect that.

2. Collision Coverage with Appropriate Deductible

What it covers: Damage to your EV from an accident, regardless of fault

Recommended deductible: $500-1,000

Why you need it: EVs are expensive to repair. Without collision coverage, you pay out-of-pocket for all damage to your vehicle from an accident. Given repair costs, this can easily be $10,000-30,000 for a moderate accident.

Consider: Lower deductible ($500) if you want minimal out-of-pocket after an accident, higher deductible ($1,000-2,500) if you want lower premiums and have emergency savings.

3. Comprehensive Coverage for Non-Accident Damage

What it covers:

• Theft (Teslas are frequently stolen in California)

• Vandalism

• Weather damage (hail, floods)

• Fire

• Falling objects

• Animal strikes

Recommended deductible: $500-1,000

Why you need it: Given theft rates for EVs, especially Teslas, and the high cost of replacing an EV, comprehensive coverage is essential. A stolen Tesla Model 3 represents a $40,000-55,000 loss without comprehensive coverage.

4. Uninsured/Underinsured Motorist Coverage

What it covers: Injuries and damage if you're hit by a driver with no insurance or insufficient insurance

Recommended: Match your liability limits (100/300 at minimum)

Why you need it: Approximately 17% of California drivers are uninsured. If an uninsured driver totals your $60,000 EV, you could be left with a massive loss without this coverage.

5. Medical Payments Coverage

What it covers: Medical expenses for you and passengers, regardless of fault

Recommended: $5,000-10,000

Why you need it: Covers immediate medical expenses without waiting for liability determination. Particularly valuable if you don't have health insurance with low deductibles.

6. Rental Reimbursement

What it covers: Cost of rental vehicle while your EV is being repaired

Recommended: $50-100/day for 30 days

Why you need it: EV repairs take longer than traditional vehicles due to parts availability and fewer repair shops. A rental for 2-4 weeks isn't unusual. Without this coverage, you pay $70-100/day out-of-pocket.

Note: Some EV manufacturers provide loaner vehicles during service. Check if this eliminates the need for rental reimbursement.

7. Roadside Assistance

What it covers: Towing, flat tire assistance, lockout service, battery jump

Recommended: Yes, ensure it includes towing to charging stations

Why you need it: Running out of charge requires towing to a charging station. Make sure your coverage specifies this, as not all roadside assistance is EV-friendly.

Alternative: Many EV manufacturers include roadside assistance for 3-8 years. If you have manufacturer coverage, you may not need this from your insurer.

8. Gap Insurance (For Leased or Financed EVs)

What it covers: Difference between what you owe and what the vehicle is worth if totaled

When you need it: If you financed with less than 20% down or leased

Why you need it: EVs can depreciate quickly in the first few years. If you owe $50,000 and your totaled EV is worth $40,000, gap insurance pays the $10,000 difference.

Where to get it: Your auto insurer or through your lender (insurer is usually cheaper)

Coverage to Consider Adding

Beyond standard coverage, EV owners should consider these add-ons:

New Car Replacement Coverage

What it is: If your EV is totaled within the first 1-2 years, you receive a brand new vehicle instead of depreciated value

Cost: Typically adds 5-10% to your premium

Worth it if: You bought a brand new EV and want protection against rapid depreciation

Original Equipment Manufacturer (OEM) Parts Coverage

What it is: Guarantees repairs use manufacturer parts, not aftermarket

Why it matters: Some insurance companies use aftermarket parts to save money, but EV technology often requires OEM parts for proper function

Cost: Usually minimal added cost

Worth it if: You want to ensure your EV is repaired to manufacturer specifications

Custom Equipment Coverage

What it is: Coverage for aftermarket additions like upgraded wheels, charging equipment, solar roof integration

Why it matters: Standard policies have limits ($1,000-3,000) for custom equipment

Cost: Based on value of customizations

Worth it if: You've added significant aftermarket upgrades

Carriers That Offer Competitive EV Insurance

Not all insurance companies price EVs the same way. Some carriers specialize in EV coverage or offer better rates:

Tesla Insurance

Pros:

• Designed specifically for Tesla vehicles

• Uses real-time driving data for pricing

• Can be competitive for good drivers

• Direct integration with vehicle

Cons:

• Only available for Teslas

• Pricing can be higher for riskier drivers

• Limited to California and a few other states

• No bundling discounts with home insurance

Best for: Tesla owners who are safe drivers with clean records

Traditional Carriers with Strong EV Programs

State Farm:

• Competitive EV rates

• Good bundling discounts

• Strong customer service

• Nationwide coverage

Geico:

• Often competitive for EVs

• Good online tools

• Discounts available

• Fast quotes

Progressive:

• Snapshot telematics program

• Often competitive for EVs

• Good bundling options

• Name Your Price tool

Wawanesa:

• Very competitive in California

• Excellent customer service

• Good EV rates

• Strong bundling discounts

AAA:

• Good EV coverage

• Roadside assistance included

• Bundling discounts

• Local presence in Cerritos

How to Get the Best Rate

Don't assume your current carrier is competitive for EVs. Carriers price EVs very differently. Some excel at traditional vehicles but price EVs high. Others focus on EVs and offer better rates.

Shop at least 5-6 carriers specifically for EV coverage.

As an independent agency, we can quote your EV with 5-10 carriers in one call, showing you exactly which companies offer the best combination of coverage and price for your specific situation.

EV-Specific Discounts to Ask About

Several discounts are specific to EVs or particularly valuable for EV owners:

Federal and State EV Incentives

While not insurance discounts per se, federal tax credits ($7,500) and California rebates (up to $7,500) reduce your vehicle cost, which can lower insurance premiums.

Bundling Discounts (15-25%)

Combine your EV insurance with homeowners insurance. Given that many EV owners own homes with home charging, this is easy to do and saves significantly.

Low Mileage Discount (10-20%)

Many EV owners have two vehicles—the EV for local driving and a gas vehicle for road trips. If you drive your EV fewer than 7,500 miles per year, ask for this discount.

Telematics/Safe Driver Discounts (10-30%)

Programs like Progressive Snapshot, State Farm Drive Safe & Save, and others monitor your driving and offer discounts for safe behavior. Many EV owners are safety-conscious and drive less aggressively, making them good candidates for these programs.

Anti-Theft Discount (5-15%)

Most EVs have built-in GPS tracking and anti-theft technology. Ask if this qualifies you for discounts.

Homeowner Discount (5-10%)

Simply owning a home can qualify you for auto insurance discounts. If you own a home where you charge your EV, make sure you're getting this discount.

Paid-In-Full Discount (5-10%)

Pay your annual premium upfront instead of monthly to save.

Good Credit Discount (Variable)

In states where allowed, good credit can significantly reduce rates.

Common EV Insurance Mistakes to Avoid

Mistake #1: Not Verifying Battery Coverage

Assuming your policy covers battery damage without confirming. Ask specifically: If my battery is damaged in an accident, is replacement covered? What's the limit?

Mistake #2: Inadequate Liability Limits

Carrying California's 15/30/5 minimum with a $60,000 vehicle. One serious accident and you're personally liable for hundreds of thousands beyond your policy limit.

Mistake #3: Not Bundling

Paying for separate auto and home policies when bundling could save 15-25%. Most EV owners are homeowners—bundle to save.

Mistake #4: Not Shopping Around

Assuming your current carrier will give you a competitive EV rate. EV pricing varies wildly between carriers—shopping is essential.

Mistake #5: Skipping Rental Reimbursement

Thinking repairs will be quick. EV repairs often take 2-4 weeks due to parts and specialized shops. Without rental coverage, you're paying $70-100/day out-of-pocket for a rental.

Mistake #6: Not Updating Home Insurance

Installing a $2,000 Level 2 charger and not adding it to homeowners coverage. If it's damaged or stolen, you may not be covered.

Mistake #7: Dropping Collision on a Financed EV

Trying to save money by dropping collision coverage while still financing the vehicle. This violates your loan terms and leaves you liable for the full vehicle cost if totaled.

What to Do If You're Buying an EV

Planning to buy an EV? Here's your insurance checklist:

Before You Buy

1. Get insurance quotes first

Don't buy the EV and then discover it costs $4,000/year to insure. Get quotes for the specific make and model you're considering before finalizing the purchase.

2. Compare total cost of ownership

Factor insurance into your EV vs. gas vehicle decision. While you save on gas, higher insurance costs should be part of your calculation.

3. Verify your homeowners insurance covers charging equipment

If installing a Level 2 charger, confirm your home insurance covers it. If not, add it.

4. Ask about multi-policy discounts

If buying an EV, you'll likely bundle it with home insurance. Get quotes for the bundled rate, not just standalone auto.

At Purchase

1. Activate insurance before driving off the lot

Don't assume your current policy automatically covers your new EV. Call your agent and add it to your policy before taking delivery.

2. Confirm VIN and coverage details

Provide the exact VIN, purchase price, and ensure all coverage is active.

3. Consider gap insurance

If you financed with less than 20% down, get gap insurance to protect against depreciation.

After Purchase

1. Document charging equipment installation

Take photos and keep receipts for your home charger installation. You'll need this if filing a claim.

2. Review coverage annually

EV values change, repair costs evolve, and your usage may shift. Review coverage every year.

3. Shop every 2-3 years

EV insurance is a rapidly evolving market. Carriers adjust their pricing frequently. Shopping every 2-3 years ensures you stay competitive.

Get the Right EV Insurance at the Right Price

Insuring an EV isn't drastically different from insuring a traditional vehicle, but the details matter. Higher repair costs, battery coverage, charging equipment, and specialized parts all affect both the cost and type of coverage you need.

The key is working with an insurance agent who understands EVs and can compare multiple carriers to find the best fit for your situation.

Ready to insure your EV properly?

At Pinoy General Insurance, we insure dozens of EVs across Cerritos and Orange County. We know which carriers offer competitive EV rates, what coverage you need, and how to maximize discounts.

Contact us today:

• Call: (562) 402-1737

• Email: info@pinoygeneralinsurance.com

• Visit: 17304 Norwalk Blvd, Cerritos, CA 90703

• Web: pinoygeneralinsurance.com

We'll quote your EV with 5-10 carriers, explain exactly what coverage you need, and ensure you're getting the best combination of protection and price.

Drive electric. Insure smart.

Frequently Asked Questions

Is EV insurance more expensive than regular car insurance?

Yes, typically 15-40% more expensive due to higher vehicle costs, expensive repairs, and limited repair options. However, shopping multiple carriers and maximizing discounts can help offset this.

Does Tesla Insurance save money?

Sometimes. Tesla Insurance can be competitive for Tesla owners with clean driving records, but not always the cheapest option. Always compare with traditional carriers.

What happens if my EV battery is damaged?

If damaged in an accident, it's typically covered under collision coverage. However, normal degradation over time is not covered—that's considered maintenance.

Do I need special coverage for my home EV charger?

Your homeowners insurance typically covers permanently installed chargers under dwelling or other structures coverage. Portable chargers fall under personal property. Verify your specific coverage with your insurer.

Can I drop collision coverage on an older EV?

Only if you own the vehicle outright and can afford to replace it if totaled. For most EVs, given their high value, collision coverage remains worthwhile for many years.

Are EV repairs really that expensive?

Yes. Average EV repairs cost 30-50% more than comparable gas vehicles due to specialized parts, limited repair shops, and complex technology.

What if I can't afford expensive EV insurance?

Shop multiple carriers (we do this for you), increase deductibles to lower premiums, maximize all available discounts, and consider a less expensive EV model. Don't sacrifice essential coverage to save money—one accident without proper coverage can be financially devastating.

Last Updated: January 2026

This blog post is for informational purposes only. Coverage recommendations vary by individual situation. Contact Pinoy General Insurance Services for personalized EV insurance quotes and advice.