Everything you need to know about green car insurance
Key takeaways
Green car insurance refers to cover suitable for electric cars or policies designed for people who want to lead a greener lifestyle
As electric and hybrid cars become more mainstream, insurance costs are decreasing, making it more affordable to own and insure greener vehicles
The UK Government offers several grants to encourage the switch to electric vehicles
What is green car insurance?
Green car insurance (or eco-friendly car insurance) is a phrase used to describe cover suitable for electric cars or policies designed for people who want to lead a greener lifestyle and lower their carbon footprint.
There isn’t a specific ‘green car insurance’ product but you can get a car insurance quote for standard cover for your green or environmentally friendly car here.
What are the different types of green car insurance policies?
Electric car insurance is like standard car insurance but adds cover for things which are specific to electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs), such as:
Battery: This will cover accidental damage, fire and theft of your battery
Portable charging cables: If your cables are lost, damaged or stolen whilst in your car or in use at a garage
Wall box: You will be covered for accidental damage, fire and theft of your wall box (home charger)
Legal cover: In case, for example, someone trips over the charging cable while in use
Recovery: If you run out of charge, some insurance companies will cover the cost of towing your car to a charging station or your home, although that should be part of your breakdown cover
Low-mileage cover might be useful if you’re aiming to keep your mileage, and therefore your emissions, as low as possible.
Car insurance providers reward you for spending less time on the road, as this equates to a reduced chance of being involved in an accident and needing to claim on your policy, as well as reducing your overall emissions
You might decide to look for specific green car insurance companies that donate profits to green causes or even fund carbon offsetting or reforestation projects.
This can be a good way to ensure your money is being spent in the right places while you still have cover in place for your vehicle
Telematics or black box car insurance allows insurance providers to monitor your driving habits and if you drive in an eco-friendly and safe way by not braking/accelerating harshly, speeding or idling for long periods you may earn points and rewards, and get a reduced premium at renewal.
Electric car insurance
Low-mileage insurance
Ethical car insurance policies
Telematics-based insurance
What are the different types of eco-friendly cars?
An all-electric or fully electric car, also known as a battery electric vehicle (BEV), uses electricity instead of petrol or diesel.
The electricity is stored in a battery pack and powers an electric motor which drives the wheels.
They produce zero tailpipe emissions and are virtually silent unless they have been fitted with a noise-emitting device for pedestrian and cyclist’s safety.
Hybrid vehicles combine a internal combustion engine with an electric motor. There are different types of hybrid cars:
Mild hybrids: have a small electric motor which assists the engine. Mild hybrids can’t run solely on electric
Full hybrids:are powered by the engine, an electric motor, or a combination of both, depending on your speed and driving conditions
Plug-in hybrids: Like fully electric cars, plug-in hybrids have batteries which can be charged from a socket. They can go further on pure electric than full hybrids
Hydrogen fuel cell cars or fuel cell electric vehicles (FCEV) produce their electricity through a chemical reaction between hydrogen and oxygen in a fuel cell stack rather than having electricity stored in a battery.
Like EVs, they produce zero tailpipe emissions.
LPG is considered a low carbon alternative fuel and LPG cars are known as dual-fuel cars as they can switch between running on LPG and petrol or diesel, when needed.
Biofuels are produced from renewable sources such as vegetable oil. They produce fewer pollutants than petrol and diesel cars. We already run a form of biofuel in petrol cars (E10, which is made up of 90% regular unleaded and 10% ethanol).
Electric cars
Hybrid cars
Hydrogen cars
Liquefied Petroleum Gas (LPG) cars
Biofuels cars
Car insurance options for green vehicles
If you have a green car such as one of those above, you’ll still have the same basic options for car insurance cover in that you’ll be able to choose from:
✔ Third-party only cover: the minimum level of insurance required to legally drive on UK roads. However, it can be the most expensive too, and won’t offer protection for you and your vehicle. It only covers damage caused to another vehicle, person or property
✔ Third-party, fire and theft: adds cover for your car if it’s stolen or damaged by fire or an explosion, but for wider cover you should take out fully comprehensive insurance
✔ Fully comprehensive car insurance: offers the most complete protection for you and your vehicle, so you’ll be able to claim for most types of loss, theft and damage, depending on the details of your policy. Fully comprehensive cover often costs less too, so it’s the best type of policy all-round
📣 Did you know? While electric car insurance also offers extra cover for your battery and accessories, you can still take out a range of other cover types, from multi-car and named driver insurance to business car insurance, telematics, and short-term cover.
Are green cars more expensive to insure?
Green or electric cars have traditionally been more expensive to insure for some years, owing to the relatively new technology that has meant parts, repair costs and specialist repair work can cost extra. However, as electric and hybrid cars become more mainstream, prices are falling and it’s becoming more affordable to own, operate and insure greener vehicles.
📣 Did you know? At the end of 2024, the average monthly premium price of an electric car was £66.04 and the average annual price was £725.78, according to the MoneySuperMarket Electric Car Insurance Index.
Are there any Government grants to help me switch to an electric car?
Yes, the UK Government has some grants in place to encourage people to shift towards electric vehicles. You may be able to qualify through one of the following:
The Electric Vehicle Chargepoint Grant for Renters or Flat Owners: if you live in a flat that you own or you rent a residential property with private off-street parking and you own or use an eligible electric vehicle you can get £350 or 75% off the cost to buy and install an EV charge point socket, whichever amount is lower
The Electric Vehicle Chargepoint and Infrastructure Grants for Landlords: You can get either £350 or 75% off the cost to buy and install a socket (whichever is lower) for up to 200 residential properties or 100 commercial properties or money off the cost of wider building and installation work that’s needed to install multiple chargepoint sockets
The Workplace Charging Scheme: Business can qualify for vouchers towards installation costs of chargepoints in the workplace. These can cover up to 75% of the cost to a maximum of £350 per charging socket, for up to 40 chargepoints
The Plug-in Van Grant: You can get a 35% discount on some electric vans, up to a maximum of £2,500 for small vans and £5,000 for large vans
How else can I be a greener driver?
Question whether you need to make a particular journey and if you do, can you walk, cycle or use public transport to get there instead?
Try to drive in a more eco-friendly manner to reduce fuel consumption
Make sure your tyres are at the correct pressure
Don’t carry unnecessary weight in your car
Car share when possible
