Do electric cars cost more to insure?

All cars fall into one of 50 insurance categories. A supermini might be in group 5, while a supercar will be in group 50. Put simply, the lower the group, the less you’ll pay for cover.

So, are electric cars more expensive to insure than petrol or diesel vehicles? The bad news is, yes, the latest data shows EVs do cost more to insure. But not by much…

Insurance groups

Take the Kia Niro. In petrol, hybrid and plug-in hybrid guise, the Niro falls into groups 11 to 15, which makes it pretty affordable to insure. Opt for the e-Niro electric car and you’re looking at groups 20-28.

It’s a similar story with the Hyundai Ioniq. The hybrid and plug-in hybrid models range from groups 10 to 12. Opt for the all-electric version and you’re looking at groups 16 and 17. A small but significant difference.

Meanwhile, the Tesla Model S slots into group 50 – the highest of the lot. This put it on a par with those supercars we mentioned. In fairness, though, it does offer the acceleration to match.

Insurance costs

Insurance groups are only part of the story. According to price comparison website Compare The Market, the average EV insurance premium declined by £97 between 2020 and 2021. Petrol and diesel cars dropped by £82 over the same period.

Overall, an electric car is £33 more expensive, on average, than a petrol or diesel car to insure. A typical premium for an electric vehicle in 2021 was £656, compared with £622 for a combustion car.

Ursula Gibbs, director at Compare The Market, commented: “One of the best ways for drivers to take advantage of the situation is to shop around for a cheaper deal when their policy ends. Our figures show electric vehicle drivers could typically pay £192 less than last year if they switch to the cheapest deal available.”

Can you get specialised EV cover?

Some insurance companies offer cover designed for electric vehicles. For example, an LV= policy includes recovery to the nearest UK charge point, cover for charging cables, wallboxes and adaptors against accidental damage, fire and theft, plus battery cover – even if you are leasing the battery separately from the car.

Other insurance companies offering electric car policies include Admiral, Hastings Direct, Adrian Flux, Co-op and Esure. Alternatively, Pluginsure is a company dedicated to electric cars – but all providers should offer cover.

Why do EVs cost more to insure?

They’re more expensive because they contain sophisticated battery technology that is costly to replace. They’re also more expensive to repair, which only adds to the overall cost.

You can reduce your premium by restricting the amount of miles you cover in a year, increasing the voluntary excess and using a price comparison website. Never accept the annual renewal quote from your existing insurance provider.

Also, remember that more expensive insurance for electric cars is offset by lower running costs. So it’s important to look at the bigger picture.

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