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Is electric car insurance expensive?

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If you’re thinking about switching to an electric vehicle (EV), don’t forget to factor in the cost of electric car insurance. Here, comparison site mustard.co.uk, answers one of the most frequent questions they’re asked, which is: “Is electric car cover expensive”; here’s what they have to say.

What does electric car insurance cover?

Electric car insurance is very similar to any other vehicle policy so you’ll still be able to choose between three levels of cover:

  • Third-party only — this is the minimum level of cover you can have in the UK and compensates other people for damage you cause in an accident.
  • Third-party, fire and theft — as well as third-party only, your insurer will pay to repair or replace your car if it’s stolen or damaged by fire.
  • Comprehensive — includes third-party, fire and theft and will also cover costs if your car is damaged in an accident you cause.

Some policies also include cover for the battery, battery failure, and charging cables. If these options aren’t included as standard, you’ll usually be able to add them for a fee. Plus, most insurers will give you the choice of adding other extra features including:

  • Legal expenses cover
  • Windscreen cover
  • Breakdown cover
  • Courtesy car

How much does electric car insurance cost?

Much like car insurance for petrol or diesel cars, electric car insurance premiums are influenced by a number of factors, including your age, address and job.

Premiums are also affected by your claims history so a claim made in the last five years can mean you end up paying more. Penalty points on your licence can increase insurance costs too, as providers are likely to consider you a greater risk to insure.

Is electric car insurance more expensive compared to petrol or diesel cars?

The short answer is yes, it can be. As it stands, insurance for an electric car is still more expensive compared to policies for petrol or diesel cars, but only slightly compared to previously. Now, the difference between the two is around £100 when previously it was several hundreds of pounds.

It’s worth pointing out that young drivers under 25 still pay significantly more for electric car insurance compared to other age groups. This is because statistics show they’re more likely to be involved in an accident.

Why is electric car insurance expensive?

Fundamentally, it’s because electric cars are still more expensive to buy. Parts are also expensive compared to petrol and diesel cars and mechanics skilled in electric vehicle maintenance are in shorter supply.

Not only that, electric car technology is still relatively new and still evolving. Insurers also don’t have the same wealth of accident or claim data for electric cars as they do for those fuelled by petrol or diesel.

Naturally, this is all likely to change over the course of the next few years as the cost of electric cars fall, and the technology becomes more mainstream.

Is running an electric car cheaper than a petrol or diesel car?

This really depends on the car you buy and the length of time you keep it. Over the course of a car’s lifetime, there is definitely the potential to save money with an electric car.

In terms of cost per mile, electric cars are considerably cheaper to run (often less than half the cost of a petrol car). There’s also no Vehicle Excise Duty (road tax) to pay so you’ll save on this too.

However, you need to consider:

  • The cost of the car — EVs typically cost more than their petrol or diesel counterparts. For example, a Vauxhall Corsa-e will set you back nearly £29,000 while the equivalent petrol version is less than £18,000.
  • Depreciation — electric cars currently depreciate faster than traditionally fueled cars which means they lose more value over time.
  • Cost of parts and servicing — EVs have less moving parts so as a rule, there’s less to go wrong and break down. That said, when parts do need replacing they are more expensive to buy. The lack of EV trained mechanics also means the cost to service electric cars is pricier than a petrol or diesel vehicle.

How can I cut the cost of electric car insurance?

Insurance still remains one of the greatest expenses of car ownership but you can lower premiums by:

  • Driving fewer miles.
  • Paying for your policy annually instead of monthly instalments.
  • Keeping your car in a locked garage overnight or investing in security (for instance, an immobiliser).
  • Choosing a telematics policy which bases your premium on personalised data and the way you drive rather than general industry statistics.

You can also save time and money by comparing a wide range policies at comparison site mustard.co.uk where they also promise to beat any other online quote with their Cheapest Price Guarantee*.

* T&Cs apply. See mustard.co.uk for details.

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Anoj Kumar
Anoj Kumar
Anoj Kumar is the Editorial Director for the AutoFreak. Anoj has been consistently named one of the top Influencers and Author by independent organizations. He is a frequently quoted source in Auto-Mobile.
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