Electric vehicles have become one of the more popular trends for people looking to reduce their carbon footprint. While the price may sometimes be higher than their gas-powered counterparts, electric vehicles have come a long way since their inception and can prove to be cost effective in the long run for consumers. Here are 5 ways in which you can save money by driving electric.

1. Fuel Savings

Fuel Savings are typically among the first points people refer to when trying to figure out how EV’s can save them money. The need for fuel is removed and studies show that the average owner of an electric vehicle who charges at home can look forward to savings of about $800-$1,000 annually.

2. Savings on Maintenance and Repair Costs

Maintenance and repair for electric vehicles are typically lower in cost over the lifespan of the vehicle. Gas powered vehicles are usually double the cost in maintenance when considering  that they are mechanically more complex than their EV counterparts. Regular fluid changes also contribute to the higher maintenance costs of gas-powered vehicles.

3. Cost of Ownership Savings

According to a study by Consumer Reports, the average EV owner can expect to save anywhere from $6,000 to $10,000 over the lifespan of the vehicle in comparison to a gas powered vehicle of an equivalent size. With lower priced EV models, the savings from ownership will usually surpass the extra money spent for the EV.

4. Insurance for EV vs gas vehicles

Gas vehicles are typically cheaper to insure vs their EV counterparts. According to Car And Driver, this is due to electric cars having a larger price tag, susceptible to damage more easily and higher repair costs. While EV owners can expect to pay higher insurance premiums, they can actually save money through tax credits which can often offset or even exceed the higher insurance costs. The best way to do this is to look for tax credits on the local, state and federal level that can be applied to EV owners. The federal government offers up to $7,500 in tax credits for specific EV models.

5. EV Car-Sharing

You can actually save money on the cost of your EV ownership by joining an electric ride share company like AER. The cost of ownership can be significantly reduced by allowing AER to use your vehicle while you’re at work. The stipend received from renting your vehicle to us can be used towards the cost of vehicle payment or insurance.

By collectively and strategically utilizing these 5 methods, you can significantly reduce the cost of owning an electric vehicle and the long-term ownership benefits far outweighs the initial premiums that you will pay up front. As new legislation becomes released that place greater emphasis on reducing CO₂ emissions, you can be sure that in time the costs of EV ownership will continue to fall.