The electric car insurance index

Whether you’re in the market for a small electric car as a city runaround or you want a luxury model with a long range, it’s worth checking how much an electric car will cost you to insure before you part with any money.  

You can compare electric car insurance quotes to check the specific model you’re considering buying or leasing, and you can also take a look at the tables below for an idea of which models may be cheaper to insure.  

The prices below are only averages though, and car insurance premiums are based on lots of different factors such as your age, where you live, your job, your claims history and the mileage you do.  

When comparing electric car insurance quotes from different providers, remember that you may not be comparing like-for-like as some insurers who specialise in electric vehicles (EVs) may include cover for your battery, charging cable, home wallbox and adapters. Insurers may also offer legal (public liability) cover, in case someone trips over your charging cable and injures themself.  

Aside from comparing quotes and looking at average prices, it’s worth checking what insurance group your electric car is in, as the lower the group, the cheaper the premium will be, generally. You can do this using our car insurance group checker tool.  

How much does it cost to insure an electric car? 

In 2023, the average monthly premium price of an electric car is £724.46 and the average annual price is £869.56. Focusing on the latest new car models, registered in 2023, this rises to £87.18 a month and £1,046.11 a year.  

These are weighted figures, and the prices are based on fully comprehensive car insurance policies, with the policy holder having a full UK driving licence. The data was collected between 1 January 2023 and 31 August 2023. 

Generally, insurance is more expensive for an electric car than for a petrol or diesel because insurers don’t have as much data on repair, replacement and write-off costs for EVs as they do for petrol and diesel cars. However, as the number of EVs increases and drivers keep them for longer, this is improving.  

The high level of technology in electric cars and the cost of the high voltage battery system if it is damaged in a serious incident are two factors which have a bearing on the cost. A study by the motor insurers' automotive research centre, Thatcham Research, found that EV claims are about 25% more expensive than their petrol and diesel equivalent and repair times are about 14% longer.  

Total losses or write-offs are one of the most considerable elements of spend during post-accident electric vehicle claims, which results in a higher insurance premium for EVs and a potentially higher total ownership cost for the consumer, according to Thatcham. 

Top 10 cheapest new electric cars to insure 

The cheapest electric cars to insure are not just small cars, like the Peugeot e-208, which tops the table with an average monthly insurance premium price of £30, and the Vauxhall Corsa (£43 a month), SUVs like the Volkswagen ID.4 (£34 a month) and Skoda Enyaq also make it into the top 10.  

Based on fully comprehensive car insurance quotes for new electric cars registered in 2023. MoneySuperMarket data collected between 1 January and 31 August 2023. 

Top 10 most expensive new electric cars to insure  

It’s no surprise that the most expensive electric cars to insure are premium models, which naturally fall into higher insurance groups. The car at the top of the chart, the Mercedes-Benz EQE, with an average monthly insurance premium price of £182, is insurance group 50, the highest group, for instance.  

Based on fully comprehensive car insurance quotes for new electric cars registered in 2023. MoneySuperMarket data collected between 1 January and 31 August 2023. 

It’s important to remember that insurance is just one element of the total cost of running an electric car. You also need to consider the cost of electric car charging and having a wallbox fitted at home, and the cost of using public electric car chargers, as well as service, maintenance and repair costs, and breakdown cover.  

You won’t need to include vehicle excise duty (VED) as that is still free for electric cars until April 2025 or pay the London Congestion Charge, Ultra-Low Emission Zone Charge, and there are lots of other benefits from owning an electric car.    

 

Source: https://www.thatcham.org/thatcham-research-innovate-uk-bev-report-2023/