More drivers than ever are considering switching to zero-emission motoring.
However, one question that frequently arises when weighing up the benefits of going electric is whether EV insurance costs more than traditional petrol or diesel car cover.
The short answer? Yes, electric vehicle insurance is typically more expensive – but there’s more to it than you might expect.
The Current State of Electric Vehicle Insurance Costs
The average cost of EV car insurance is around £654 for the most popular electric car models in the UK, according to recent analysis by NimbleFins. However, premiums are highly variable from one car to the next, with quotes ranging from around £400 to over £1,000 per year for our test driver.
Different comparison sites report varying figures, highlighting how much insurance costs can differ depending on your circumstances.
But here’s the key point: These costs only matter if you’re buying insurance separately.
Skip the Insurance Hassle Entirely with EZOO
Why worry about electric vehicle insurance costs when you don’t have to deal with them at all?
At EZOO, we’ve eliminated the insurance headache completely. When you choose one of our EV lease deals or salary sacrifice schemes, comprehensive insurance is included as standard – meaning you’ll never need to shop around, compare quotes, or worry about annual renewals and price increases.
The EZOO Advantage
- No Insurance Shopping Required: Forget spending hours on comparison websites or dealing with insurance brokers. Your cover is sorted from day one.
- Fixed Monthly Costs: Instead of facing unpredictable insurance renewals that can increase by hundreds of pounds, your insurance cost is built into your predictable monthly lease payment.
- Comprehensive EV Coverage: Our insurance packages include all the specialist electric vehicle features you need – charging cable cover, battery protection, and breakdown recovery to charging points.
- Tax-Efficient Payments: Through salary sacrifice, your lease payments (including insurance) come from your gross salary, potentially saving you thousands in tax and National Insurance.
- Zero Upfront Costs: No need to find a lump sum for annual insurance premiums – everything is spread across affordable monthly payments.
- Professional Claims Handling: Benefit from fleet-grade insurance with dedicated support, rather than dealing with consumer insurance call centres.
With EZOO’s inclusive approach, the question isn’t “how much more will EV insurance cost me?” but rather “how much will I save by not having to deal with insurance at all?”.
Why Electric Vehicle Insurance Costs More
Higher Purchase Values and Replacement Costs
Electric cars typically have a higher initial purchase price than equivalent petrol models, which often translates to higher insurance premiums. When an insurer calculates your premium, the value of your vehicle is a key factor – quite simply, a more expensive car costs more to replace if it’s written off or stolen.
Battery Technology and Replacement Costs
One of the most significant factors affecting EV insurance costs is the battery pack. The lithium-ion battery pack in an electric car can account for up to two-thirds of the vehicle’s value. If the battery is damaged beyond repair, replacement costs can be substantial, often running into tens of thousands of pounds.
Specialised Repair Requirements
Not every mechanic can work on EVs; a specific qualification is needed. This may incur a higher repair cost. The limited number of qualified technicians means repair times can be longer, and labour costs higher.
However, it’s worth noting that EVs generally have fewer moving parts than traditional vehicles and tend to require less frequent maintenance overall, with electric motors proving more reliable than conventional combustion engines.
Parts Availability and Cost
Electric vehicles use specialised components that can be more expensive and harder to source than conventional car parts. Since EVs are newer, they are more expensive to repair, and the parts harder to get hold of. Software is also more technical to repair.
Limited Historical Data
Insurance premiums are typically based on historical claims data, but electric vehicles haven’t been on UK roads long enough to build comprehensive databases. This uncertainty often leads insurers to price policies more conservatively, resulting in higher premiums.
Special Insurance Features for Electric Vehicles
Many insurers now offer EV-specific policies with additional features that traditional car insurance doesn’t include:
- Charging Equipment Cover: Protection for charging cables, wallbox home chargers, and adaptors against theft, damage, or fire.
- Battery Cover: Comprehensive protection for the vehicle’s battery pack, even if it’s leased separately from the car.
- Breakdown Recovery: Specialist recovery services if your EV runs out of charge, including transport to the nearest charging point.
- Over-the-Air Updates: Coverage for software updates that are delivered remotely to your vehicle.
Factors That Affect Your Electric Vehicle Insurance Premium
Like any car insurance, EV premiums are influenced by numerous personal and vehicle-related factors:
- Your Age and Experience: Young and inexperienced drivers typically pay more, regardless of whether they drive electric or petrol vehicles.
- Driving History: A clean driving record with no claims or convictions will help keep costs down.
- Annual Mileage: Higher mileage typically means higher premiums as insurers perceive greater accident risk.
- Location: Urban areas with higher traffic density and crime rates generally result in higher premiums.
- Security Measures: Having a garage or secure parking can reduce costs, as can additional security features like alarms or immobilisers.
- Occupation: Certain professions are considered higher risk by insurers.
Ways to Reduce Your Electric Vehicle Insurance Costs
Despite higher baseline costs, there are several strategies you can employ to keep your EV insurance affordable:
- Shop Around: Different insurers price electric vehicle risk differently, so comparison shopping is essential.
- Consider Higher Excesses: Agreeing to pay a higher excess can significantly reduce your premium.
- Improve Security: Parking in a garage or on a private driveway can lower costs.
- Bundle Policies: Some insurers offer discounts if you have multiple policies with them.
- Build No-Claims Bonus: Maintaining a clean claims record will help reduce future premiums.
- Choose Your Vehicle Wisely: Some electric vehicles are much cheaper to insure than others.
Making the Switch: Is It Worth It?
The slightly higher insurance costs shouldn’t deter you from considering an electric vehicle. As the technology matures and becomes more mainstream, insurance costs are expected to continue falling.
The environmental benefits, lower running costs, and increasingly impressive range and performance of modern electric vehicles make them an attractive proposition for many drivers.