Insurance prices are only partially tied to the value of the car because the majority of collisions don’t result in total losses.
So while the max payout on a $40k car is $40k, and the max payout on a $20k car is $20k, the average collision claim that’s not a total loss is still ~$4k for either one.
I’m waiting to see if insurance costs plummet at the same rate as used (and, in Tesla’s case, new) EV values.
Insurance prices are only partially tied to the value of the car because the majority of collisions don’t result in total losses.
So while the max payout on a $40k car is $40k, and the max payout on a $20k car is $20k, the average collision claim that’s not a total loss is still ~$4k for either one.