Electric car insurance

As more electric cars pop up on UK roads, you may be considering making the switch and driving one yourself. Until 2025, you can tax your electric car without paying a penny, and you won’t have to pay the London congestion charge.

Choosing to drive an electric car can be a “greener” step in the right direction but don’t be left out of pocket when insuring it. Read our guide to discover how electric car insurance differs from traditional cover, and how you could save on your premium.

What is electric car insurance?

Electric car insurance is, as the name suggests, insurance for electric cars. The more important question is: How is it different from regular car insurance?

Does car insurance for electric vehicles work differently?

In many ways it’s the same as for any other car. You don’t need a special type of insurance for an electric vehicle (EV); most mainstream insurers will happily offer you a quote for an electric car. And, just like regular car insurance, electric car insurance premiums are calculated based on a number of factors. The car’s value, age and performance, as well as the driver’s age, driving history and location, will all be considered.

But there can be subtle differences. EVs are still a pretty new phenomenon, so some insurers may be hesitant to offer cover for them, though this is rapidly changing as they become more popular. And, conversely, there are some specialist providers and policies that may offer features more tailored towards EVs.

Insurers may also give more consideration to certain factors for EVs than they do for petrol or diesel cars. For example, electric cars rely heavily on new technology, which may be more expensive to repair. The electric battery that powers EVs, in particular, can be pricey to replace.

While some factors have the potential to increase the cost of car insurance, electric cars are becoming more mainstream. By 2030, when the sale of new fully petrol and diesel cars will be banned, EVs will be a more common sight on UK roads. Increased ownership is likely to bring down the cost of parts and repairs, and it’s likely the cost of insurance will follow.

What level of cover can I get for my electric car?

You can get the same levels of cover for an electric car as are available with any other type of car. These are:

1. Third-party insurance. This covers you for damage to other people’s cars and property if you cause an accident, but it won’t cover any damage to your car or injuries to you or your passengers. Third-party insurance is the minimum legal requirement to drive a car.
2. Third-party, fire and theft. As well as damage to other people’s cars and property, third-party, fire and theft covers your own car if it is damaged by fire or stolen.
3. Fully comprehensive. Covers both other people’s cars and property and your own in the event of damage in an accident, as well as protecting your car if it is stolen or fire-damaged. It’s the highest level of car insurance and, contrary to what you might expect, often isn’t more expensive than a third-party policy.

What extra policy features are available with electric car insurance?

Electric car insurance typically has all of the features you can get with a regular car insurance policy, either as standard or as add-ons, such as courtesy car cover or breakdown cover.

When you’re insuring an electric car, you should also make sure your policy includes:

• Electric battery cover for any damage done to or theft of your battery. Also bear in mind that with some EVs, particularly older models, you lease the battery on a separate contract from owning the vehicle. If this is the case, you’ll need to make sure the insurance company is aware.
• Cover for the portable charging cables. These are essential to recharge your car when you’re out and about, so make sure you’re covered in case they’re lost, stolen or damaged.
• Liability cover. You’ll need this in the event that someone trips over the charging cable while it’s in use, is injured and makes a claim against you.

How much does electric car insurance cost?

As with all cars, the cost of insurance for electric cars will vary depending on your personal circumstances. Very young drivers, for example, will usually pay more for their insurance regardless of the type of car. That’s because industry data shows that they are more likely to make an insurance claim.

One key factor that affects the cost of insurance is the car insurance group that a car falls into. A car’s insurance group is heavily influenced by the purchase price of a new car, and the likely cost of repairs.

Are electric cars cheaper to insure than petrol or diesel cars?

Electric cars are, on average, much more expensive than petrol or diesel cars to buy new, and their specialist technology means that repairs can be pricier too. These factors mean that electric cars are usually placed in higher insurance groups than petrol and diesel cars of a similar size and class range. Typically, the higher the insurance group, the higher the insurance premium.

For example, the fully-electric Renault Zoe is in insurance groups 14-22, depending on the specific model. The cheapest versions of the similarly-sized, traditionally-fuelled Renault Clio are in groups 3 or 4. Only the highest-end and often more powerful models in the Clio range are in groups 14 or above.

That said, early adopters of electric cars tend to have ethical values. Some sources suggest that this makes them safer, more conscientious, and lower-risk drivers. This could result in them being offered lower rates.

• How we got this rate

  To generate these figures we used the following assumptions:

  • Factory fitted alarm system
  • Not modified
  • Used for social and commuting purposes
  • 10,000 mileage per year
  • The car is parked in a car park during the day
  • The car is parked on a driveway at night
  • Driver is a 30-year-old teacher from London
  • 5 years no claims discount
  • Driver has not had any driving or other convictions in the last 5 years

Will my electric car be cheap to insure?

If you’re thinking of buying an electric car, your primary motivation is likely to be its lower eco-footprint and, potentially, it’s lower running costs. It probably isn’t cheap insurance. Which is just as well, as insurance for electric cars tends to be more expensive than the closest equivalent petrol or diesel versions.

That said, there are plenty of ways to avoid paying more than you need to, whether that’s opting for an electric car in a lower insurance group, or making sure you shop around for the cheapest insurance. So don’t just accept the first premium you’re offered; you should be able to get a competitive quote with relatively little legwork.

Do all insurance providers offer electric car insurance?

Most insurers will happily insure your electric car as part of their standard quote process, but some may not. If you’re switching to an electric car don’t assume your preferred insurer will definitely cover you.

This means you may need to put in a bit more effort shopping around, including checking specialist policies, to find a policy that’s right for you.

That said, electric car insurance is already far more widely available than it was when the electric car industry was in its infancy. As electric cars become more popular, it’s likely that electric car insurance will become more widely available and, potentially, cheaper.

Which providers offer specialist electric car insurance?

A quick Google search for “specialist electric car insurance” will land you a bumper crop of insurers that offer cover specifically for electric cars, including a number of brokers. That said, there are plenty of mainstream insurers that offer electric car insurance, and some tailor their policies specifically for this. Check that mainstream providers offer the cover you want though.

What are the benefits of using a specialist electric car insurance provider?

Specialist insurers may sometimes offer extra features designed specifically for electric cars, such as liability cover in case a passer-by injures themselves tripping over your charging cable. Not every mainstream provider may offer this.

Plus, because they offer cover specifically designed for electric cars, you may sometimes find that specialists offer equivalent cover to mainstream providers at a lower price. So it’s worth checking both mainstream providers and specialists.

Does electric car insurance cover batteries and charging cables?

Typically, yes. The majority of electric car policies are clear that they cover both damage to or theft of EV batteries and the loss, damage or theft of charging cables. Some, but not all, policies also offer liability cover in case someone trips over a trailing charging cable and injures themselves.

Bear in mind that “wear and tear” is unlikely to be covered under your insurance. So if your battery simply runs out of juice one day without an incident that’s caused it, your insurance won’t cover it. It may, however, be covered under your car’s warranty instead.

How can I get cheaper electric car insurance?

• Choose a cover level that suits you. Contrary to what you might expect, comprehensive cover can be cheaper than third-party or third-party, fire and theft so it’s always worth checking. This is because of the risk profile of many people who typically get third-party cover.
• Increase security. If your car is not currently fitted with an alarm, think about adding one to reduce your premium.
• Have a secure location to park your car. Cars kept in a garage or on a secure driveway are usually cheaper to insure.
• Limit your mileage. If you start working part-time or your long commute becomes much shorter, letting your insurer know about a reduction in your mileage could result in cheaper insurance.
• Increase excess. Agreeing to pay a higher voluntary excess could make your overall premium cheaper. But remember that your insurer won’t pay out for a claim that costs less than your excess. So be careful about making it too high, as it could leave you out of pocket if damage occurs.
• Add experienced drivers. Adding an older and more experienced driver to your policy lowers the risk and could help to lower the premium.
• Limit optional extras if you don’t need them. Think carefully about which optional extras you really want, as adding extra protection to your policy will generally push the price up too.
• Avoid paying monthly. If you can, try to pay for your premium in one go as you’ll pay interest if the premium is spread out over the year.
• Limit modifications. Any modifications made to your car to make it look better or drive faster are likely to increase your premium so think carefully before making any changes.
• Shop around. Don’t simply choose to renew your car insurance when it’s up for renewal as you could end up paying more than you need to. Shop around and compare your options to find the best deal. Keep in mind that the cheapest policy isn’t always the best policy, so check the cover details carefully.

What government grants can you get for an electric vehicle?

Until mid-2022, all electric cars qualified for a government grant to help with the high purchase cost and encourage uptake. However, this has now been scrapped for most cars, and only certain vehicles (including vans, motorbikes and wheelchair-accessible vehicles) still qualify. You can find out more on the gov.uk website.

There also used to be a grant available to all homeowners to install electric car wall chargers at home, that covered up to 75% of the cost (up to a maximum of £350). This is now only open to those who live in flats and those in rental accommodation. If you own a house, you’re out of luck.

Some people that live in Scotland may qualify for extra support to install a charger via the Energy Saving Trust, depending on exactly where they live and how they bought their car.

Car insurance for hybrid vs electric cars

Hybrid cars offer a halfway house between going fully electric and sticking with a traditionally-fuelled car. But, while hybrids use petrol (or, in some cases, diesel), they also have some of the same elements as electric cars that need to be taken into consideration when buying insurance.

Exactly what cover you’ll need depends on the type of hybrid you have. For example, all hybrid cars have an electric battery as well as the standard 12v battery that all cars have (to power the car’s electronics, such as any alarms). But only plug-in hybrids will have an electric battery that needs to be plugged in to charge, and so will require insurance for charging cables.

There are more hybrid cars on UK roads than there are electric ones, and so prices for the cars themselves are often more competitive than fully electric models. This, among other things, can in turn affect the insurance group they fall into, and thus the insurance premiums you’re likely to pay.

If you’re debating the merits of a hybrid vs an electric car, and insurance cost is one of your considerations, you can find out more in our full guide to hybrid car insurance.

What are the pros and cons of owning an electric vehicle?

Bottom line

As electric cars grow in popularity, more and more insurers are offering electric car insurance. This includes both electric car insurance specialists and mainstream providers. There are factors that can make electric car insurance pricier than regular car insurance, such as higher up-front and repair costs. But there are many other things that affect the cost of car insurance too, for better or worse, and premiums for electric car insurance are becoming increasingly competitive. The same cost-cutting principles apply as when you’re insuring any car: safe driving habits, strong car security measures and, crucially, shopping around, can all help you secure cheaper car insurance.

Frequently asked questions

• Is electric car insurance cheaper than regular car insurance?

  Insurance providers look at several factors when they calculate electric car insurance, much the same as for standard car insurance. These factors include the car’s value, age and performance, as well as the driver’s age, location and driving history.

  But as electric cars work in a slightly different way to traditional cars that use fuel, insurers do look at other factors such as the repair costs. As electric cars rely heavily on new technology, the repair costs may be much higher than traditional fuel cars, which can drive premiums up. The repairs might also need to be carried out by specialist electric car mechanics.

  The electric battery, which is an EV’s most vital part, is expensive. This is also factored into insurance premiums.

• How much does electric car insurance cost?

  The cost will depend on the car you drive as well as your experience and age. Comparing your options is the best way to find the most suitable cover for your needs, which may not necessarily be the cheapest out there.

• Do you pay less road tax on electric cars?

  Indeed you do. At present, zero-emission cars – including electric cars – are exempt from road tax (officially known as vehicle excise duty). However, in his 2022 Autumn Statement the Chancellor announced that electric cars will have to start paying road tax from April 2025, so be prepared.

• Should I find a specialist insurer for my electric car?

  A specialist insurer may offer you a competitive electric car insurance quote, particularly if it offers discounts for simply driving an electric car. However, be sure to shop around as there may be some standard insurance providers that are willing to offer competitive cover for your electric car.

• Which insurance group does my electric vehicle fall under?

  You can check which group your electric car is in on the Thatcham website. Its tool lets you enter the specific details of your car, such as trim and fuel type, as well as the make and model.

  As with any car, the insurance group an electric car is in can have an impact on insurance premiums – find out more in the Finder guide to car insurance groups. Electric cars are often in higher insurance groups than their closest petrol or diesel equivalents thanks to factors such as their high purchase prices and the cost of repairs.

• Does electric car insurance cover battery failures?

  It depends on how you define “failure”. If your electric car battery is stolen, damaged or stops working properly following an accident, then an electric car insurance policy should cover this. Bear in mind that you are likely to have to pay an excess. If, on the other hand, it’s a matter of wear and tear, or the battery simply runs out of juice because you’ve driven it for too long without recharging, a car insurance policy won’t cover the cost of getting you back on the road as standard. Breakdown services should be able to help you out in the latter case, so if you have breakdown cover as an add-on to your car insurance, this may cover you if you run out of battery power.

• Do I need to insure the battery in my electric car?

  If you have electric car insurance, the battery should be covered as part of the policy, so you won’t need to insure the battery separately. If you have a model of car where the battery is leased, it’s important to inform the insurer of this when you take out the policy. Leased batteries are more common in older car models.

• Is road tax free on electric cars?

  Fully electric cars are currently exempt from car tax, though this is due to change from April 2025. However, car tax is payable on hybrid and plug-in hybrid cars.

• Can I get electric vehicle insurance from any insurance provider?

  Most mainstream car insurers now offer cover for electric cars; you can use Finder’s comparison service to get electric car insurance quotes from a range of providers. There are also a number of insurers and brokers that specialise in electric car insurance, which could be worth a try.

• Which EV has the cheapest insurance?

  If you’re looking for an EV that’s cheaper to insure, you’re best off checking its insurance group. This is likely to be a good indicator of insurance costs (the lower the insurance group, the lower the likely premiums). Electric cars that fall into some of the lower (though not the lowest) insurance groups include: the Volkswagen e-Up (insurance group 10), the Smart EQ Forfour (insurance group 11), and the Renault Zoe (insurance group 14).

• How much more expensive is it to insure an EV?

  We’ve not done a scientific study of all electric cars. But, based on a comparison between a Vauxhall Corsa Electric and a broadly equivalent petrol Corsa, you can expect the cheapest quotes to be around 50% higher for the electric than the petrol version.