Electric Car Insurance
An introduction to electric car insurance that covers everything you need to know before looking for a policy, including an overview of cost factors and providers.
Last updated: Sep 30, 2021 • 3 min read
Insuring an electric car is as easy as insuring a car with an internal combustion engine, although it still costs slightly more.
- Most major insurers like Aviva, Direct Line and Admiral now cover electric cars.
- Electric car insurance is more expensive than conventional insurance, due to the need for specialist parts and servicing.
- There are specialist electric car insurance companies that offer tailored policies for low emissions vehicles.
Do all mainstream insurance companies insure electric cars?
The majority of mainstream insurance companies now insure electric cars. Despite some difficulties in the early days of electric motoring, firms like Aviva, LV, Direct Line and Admiral have all integrated EVs into their quotation systems.
This is great news for drivers as it helps make insuring an electric car as straightforward as insuring a petrol/diesel vehicle.
Some vehicle manufacturers provide insurance packages as an option to customers, as with traditional internal combustion engine (ICE) vehicles.
If a mainstream insurer doesn’t offer the premiums or service you require, specialist electric car insurance companies can offer more tailored policies for low emission vehicles.
With all of these options, it’s easier to find electric car insurance now than it was when EVs first hit the streets. You can visit MoneySuperMarket or Compare The Market to find the best insurance for your electric car and compare quotes from different providers.
Tip: The best way to ensure you are getting the best deal is to compare car insurance quotes from as many providers as possible. We recommend using price comparison sites and trying a handful of recommended insurers direct.
Does it cost more to insure an electric car?
Currently, insurance is higher for electric cars than a petrol or diesel vehicle. The insurance industry generally applies a higher group rating to electric cars compared to traditional ICE vehicles, this is because servicing and parts for electric vehicles are currently more specialised.
For example, the lowest insurance group for a VW Golf is 7, compared to its electric equivalent VW e-Golf, which is insurance group 15.
However, it’s important to keep in mind that the insurance group rating of a car is only one factor taken into account when insurance companies calculate your insurance quote. The other key factor is the risk profile of the driver of the car.
As EVs become more commonplace, and ultimately the first choice for drivers, it is likely the relative insurance costs will become lower than those for traditional petrol/diesel vehicles. Prices will also drop when the insurance market for EVs becomes more competitive through more demand.
Tip: Paying for your insurance in monthly instalments by direct debit rather than the full annual amount makes it feel more manageable. But it's likely you will incur interest charges. The cheapest method of buying insurance is a one off annual payment.
Why does it cost more to insure an electric car?
As electric cars operate differently to (and are less common than) traditional ICE vehicles, they do present some unique issues for insurers such as:
- Costs of specialised parts.
- Repairs by specialist mechanics.
- Expensive batteries.
At present, this means electric car insurance policies are slightly more expensive than an equivalent ICE vehicle. As more electric vehicles become available and with the government's ban on new petrol and diesel cars coming into force in 2030, the cost of insurance will reduce and eventually become cheaper than their ICE counterparts.
Tip: If you lease your battery on a contract separate from owning the vehicle, it is important to make your insurance company aware of this to prevent problems should a claim be necessary.