Happy Friday Elio’ers! Earlier this week, we came across a piece of information we thought you might find interesting. The headline of the article that grabbed our attention was “Profitt Report: Michiganders pay more for auto insurance than any other state, survey says.” This headline was interesting to us in part because even though Shreveport is our manufacturing home, Michigan is where the engineering magic happens. Also, we have many suppliers in the area. In addition, it brings up an interesting topic related to our vehicle.
Paying for insurance is a frustrating yet necessary obligation to own and operate either an automobile or motorcycle. Let’s take a look at the differences in insurance costs for both automobiles and motorcycles.
As we mentioned, the most expensive state to insure a vehicle in Michigan. According to Business Insider, “If you own and operate a vehicle, car insurance is a necessary purchase. On average, Americans spend $125 a month, or $1,503 for an annual rate, on car insurance, according to a study done by ValuePenguin.” In Michigan, the average driver spends over $2,600 annually in automotive insurance premiums. Ouch! On the other end of the spectrum, folks in North Carolina spend a much more reasonable $865 on average annually. Rates have been steadily increasing in the past few years. In 2014, the average annual cost nationally was nearly $600 less than it is today.
Insuring a motorcycle is much easier on the wallets and pocketbooks of owners. According to Value Penguin, “Motorcycle insurance is required in most states in the U.S. but regardless of local laws, riders should purchase a policy to protect their bike and financial well-being. The average cost of motorcycle insurance is $519 per year in the U.S., which is well below the average cost of auto insurance. But, depending on which state you live in, this rate can vary by over 200%.” North Dakota is the least expensive state to insure a motorcycle, coming in at $283 a year. Incredibly, that’s only about $67 less than it costs to ensure an automobile in Michigan for a single month!
While we think this is generally interesting information, it also has implications for our vehicle and future Elio owners. As we’ve mentioned in prior blogs, the Elio’s three-wheeled configuration makes it likely that our vehicle will be insured as a motorcycle. (To save you time, if you contact your local agent, they probably won’t know about us just yet. But they will as we get closer to production!) We receive quite a few questions about the exact cost to insure the Elio. It’s hard to say because every insurance company calculates their premiums differently, but we do know that a vehicle’s cost and safety rating play a major role. As our vehicle will be safe and inexpensive, the Elio will be very inexpensive to insure, especially when compared with current premiums.
Thanks for your support and have a fantastic weekend!