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An increasing number of individuals are choosing electric cars, not solely for their eco-friendly benefits but also as a potential solution to rising fuel costs. Here’s a guide to securing an attractive insurance deal for your electric car.
- Is EV car insurance different from other types of car insurance?
- How much is electric car insurance?
- What cover extras are available with electric car insurance?
- Do all insurance providers offer electric car cover?
- What are the benefits of owning an electric car?
- What else should I consider when buying an electric car?
- How can I get cheap electric car insurance?
- Frequently asked questions
Is EV car insurance different from other types of car insurance?
Fundamentally, the core aspects of insurance for electric cars (EVs) are quite similar to those of conventional cars. You’ll encounter the usual cover levels and a broad spectrum of policy add-ons. The claim-making process remains consistent as well.
However, electric car insurance has certain distinct features tailored to the unique needs of EVs. Notably, most policies will automatically cover the EV’s battery—often the most expensive component—and its charging equipment, ensuring peace of mind for EV owners.
Here’s a breakdown of the three primary electric car insurance levels:
Third-party only: This is the foundational cover level, mandated by law. It compensates for damages or injuries to others affected by your vehicle. However, any harm to your EV or personal injuries are not included in the claims.
Third-party, fire, and theft: This expands on the basic third-party insurance, adding protection for your EV against fire-related damages and theft incidents.
Comprehensive: As the most encompassing level, comprehensive insurance provides cover for damages and injuries caused to third parties, but importantly, it also safeguards you and your EV against potential threats or mishaps.
One crucial point to bear in mind: Electric vehicles, due to their advanced technology and components, often come with a heftier price tag compared to traditional petrol or diesel counterparts. As a result, their insurance premiums might be slightly elevated.
However, with technological advancements and the growing adoption of EVs, their purchase prices are projected to decline. As this trend continues, insurance costs for EVs could become more comparable to those of traditional vehicles.
How much can you save on your electric car insurance?
How much is electric car insurance?
The insurance premium for electric vehicles (EVs), like traditional car insurance, is influenced by a myriad of factors, encompassing:
- The valuation of your EV
- The specific insurance category associated with your electric car
- Your chosen cover level
- Demographics like age
- Geographic factors like your postcode
- Track record of driving and any previous claims or penalty points
- Estimated annual mileage
- Overnight parking arrangements for the car
Before setting your heart on an electric car, investigating its insurance classification is a smart move. Typically, cars in the lower insurance brackets tend to have cheaper insurance premiums.
Why is electric car insurance so expensive?
Historically, the purchase price of electric cars surpassed that of their petrol and diesel counterparts, resulting in steeper insurance rates.
The complexity of EV technology also meant that repairs could be pricier, given the scarcity of spare parts and the necessity for specialised mechanics.
However, with the rising tide of sustainable transport and the evolution of the EV sector, the insurance market is experiencing diversification. As more consumers gravitate towards eco-friendly transport solutions and the infrastructure around EVs advances, the realm of EV insurance is seeing a surge in options.
The expanding variety implies consumers might find cheaper car insurance quotes.
Did you know?
Moreover, in alignment with the UK’s ambitious climate targets, the sale of brand-new petrol and diesel vehicles will face a ban from 2030 onwards, bolstering the nation’s journey towards achieving net-zero carbon emissions.
Consequently, in the forthcoming years, the landscape of electric car insurance is poised for substantial growth, offering more tailored options to consumers.
How much can you save on your electric car insurance?
What cover extras are available with electric car insurance?
While electric car insurance shares many optional add-ons with traditional petrol and diesel vehicle policies, there are certain unique provisions tailored to the specificities of EVs. Here are some key ones:
Personal accident cover
Personal accident cover offers compensation in the unfortunate event of severe injuries or fatalities involving you, your partner, or your passengers during a car mishap.
Courtesy car cover
If an accident sends your EV to the garage, courtesy car cover offers you a temporary replacement, ensuring your mobility isn’t compromised.
Battery cover
An important aspect of electric car insurance is the inclusion of cover for the battery.
In scenarios where the battery is compromised due to theft, fire, or accidents, the policy typically provides cover.
It’s essential to determine if the insurance extends to both owned and leased batteries.
Always consult with the insurer if you’re uncertain about the policy’s stipulations.
Electric car breakdown cover
Tailored for electric cars, some breakdown services not only offer the standard roadside recovery but also ensure your vehicle reaches the nearest charging station if you deplete your battery.
In some advanced services, mobile charging units might even rejuvenate your battery on the spot, letting you resume your journey without delay.
No-claims discount protection
No-claims discount protection ensures that your accumulated no-claims discount remains intact, even if you submit a claim.
Motor legal protection
Often termed as legal cover, motor legal protection covers any legal costs if you initiate legal proceedings against another driver.
It also offers defensive support, say, if someone encounters an injury due to stumbling over your charging cable.
Portable charging cables cover
Given the importance of charging cables for EVs, insurance often covers any potential losses or thefts—whether they occur in your car or during external usage.
This is a feature generally embedded in standard EV insurance packages.
When exploring electric car insurance, remember that comprehensive insurance plans might inherently include several of these additional features.
Therefore, a thorough comparison between policies is recommended to ascertain the best fit. Always dive deep into the policy documents to ensure clarity on what’s covered and any potential exclusions.
How much can you save on your electric car insurance?
Do all insurance providers offer electric car cover?
While electric vehicle (EV) insurance isn’t offered by every insurer in the market, a significant majority have incorporated it into their portfolios. The growing popularity of electric cars has catalysed this adaptation.
As consumer interest in cleaner, greener transport options surges, insurance companies are progressively recognising the necessity to cater to this segment.
For potential and current EV owners, this diversification in the insurance sector is advantageous. The heightened competition among providers vying for a share of the electric car market translates into potentially better rates and more tailored policies.
Therefore, to capitalise on this competitive landscape, actively comparing electric car insurance offerings can be a strategic approach to securing a cost-effective deal.
How much can you save on your electric car insurance?
What are the benefits of owning an electric car?
Delving into the world of electric vehicles (EVs) comes with plenty of benefits:
Reduce your carbon footprint
Electric vehicles emit no tailpipe pollutants, positioning them as a more eco-friendly alternative to their petrol and diesel counterparts. By adopting an EV, you’re directly contributing to a reduction in harmful air pollutants.
Tax Incentives till 2025
For the time being, fully electric cars are exempt from the Vehicle Excise Duty (road tax). However, post-April 2025, these cars will be subjected to the standard rate.
The silver lining is that new zero-emission cars registered after this date will only be levied the minimum first-year rate, transitioning to the standard rate from the subsequent year. Even if no payment is due, remember to tax your vehicle.
They’re cheaper to drive
According to data analysis from 2021, operating an electric car proved to be approximately £408 less costly than running a petrol-powered car in that year.
Savings can vary based on factors like the car model, your residential electricity rates, and charging locations. It’s worth noting that while public fast chargers saw a spike in pricing during the 2022 energy crisis, domestic charging costs remained safeguarded by governmental policies.
Select energy providers also introduce tailored tariffs for nocturnal EV charging.
Repair and servicing costs
The simplicity of EVs, with fewer moving components compared to combustion engine vehicles, often leads to reduced wear and tear. This translates to potentially lower servicing and repair bills.
No congestion and/or clean air zone charge
Several cities, including but not limited to London, Birmingham, Oxford, and Bristol, have initiated congestion or clean air zone charges.
Fortunately, EV drivers are exempt, making daily commutes or periodic city trips more economical. As more cities adopt such measures, the savings and conveniences for EV owners multiply.
Free parking
Some local councils offer complimentary or discounted parking for electric cars, encouraging the adoption of greener transport alternatives.
Quieter engines
One of the understated advantages of EVs is the serenity they offer. Electric motors are significantly quieter than traditional engines.
Although they produce a discernible sound for pedestrian safety, the overall in-cab experience is calm, making for a more pleasurable ride.
Shifting to an electric car is not just a forward-thinking environmental decision but also offers tangible day-to-day benefits and potential savings.
How much can you save on your electric car insurance?
What else should I consider when buying an electric car?
Venturing into the world of electric vehicles (EVs) is exciting, but certain aspects merit careful contemplation. Here are pivotal considerations:
Electric car batteries: buy or lease?
One primary decision centres around the electric car’s battery. Do you opt for outright ownership or lean towards leasing?
While battery leasing is becoming rarer with newer EV models, some manufacturers still offer this option. Leasing can trim the initial purchase price, but it also binds you to the terms set by the manufacturer.
This includes a recurring lease payment, which needs to be factored into your monthly expenses.
Electric car range
Check the distance you typically cover. The mileage range on a single electric charge might not always rival that of a traditional fuel tank. If your routine includes extensive travel, yet you aspire to adopt an eco-friendly mode, a hybrid car might align more seamlessly with your needs
Charging at home
For the convenience of charging your EV within your premises, the installation of a home charging unit is essential. To support this, the government has rolled out grants, capping at £350, to mitigate installation expenditures.
Notably, as of April 2022, this incentive is geared towards flat occupants and renters with dedicated off-street parking. Depending on the brand and model chosen, the combined cost for a charger and its setup generally oscillates between £800 and £1,500.
Charging point locations
Beyond the confines of your home, consider the charging network in your frequent locales. Is the area you reside in or the places you frequent well-equipped with charging stations?
A handy resource is the ‘zap map‘ tool, which offers a visual representation of charging points. This will give you a clearer picture of how feasible an EV would be for your day-to-day travels.
How much can you save on your electric car insurance?
How can I get cheap electric car insurance?
Car insurance premiums hinge on a multitude of factors. They assess aspects like your driving record, residential location, overnight parking arrangements, age, and even what you do for a job to gauge potential risks.
Nevertheless, there are things you can do to cut your insurance costs:
Limit Annual Mileage
If you can commit to driving fewer miles each year, this can often reduce your premium. Insurers often provide discounts for drivers who fall below certain mileage thresholds.
Adjust Your Excess
By opting to increase your voluntary excess (the amount you pay towards any claim), you can often lower the overall premium. However, ensure the excess remains affordable in case you need to make a claim.
Garage Parking
Parking your car in a secured garage overnight can sometimes earn you a discount, as it poses a lower risk compared to street parking.
No-Claims Bonus
Accumulating a track record of safe driving without claims can considerably diminish insurance costs over time and build your no-claims discount.
Safety and Security
Investing in additional security measures for your EV, like alarms or tracking devices, can sometimes lower premiums since it reduces the risk of theft.
Driver Training
Taking advanced driving courses can help reduce premiums for some insurers as it can demonstrate your commitment to safe driving.
Shop Around and Compare
Compare cheap car insurance quotes using our platform and compare over 110 of the UK’s most trusted insurance providers. This approach empowers you to create a policy tailored to your needs and budget. Just a few minutes can pave the way to potential savings on your electric car insurance.
How much can you save on your electric car insurance?
Frequently asked questions
An electric vehicle (EV) operates solely on a battery-driven motor, while a hybrid car harnesses the power of both a traditional petrol or diesel engine and a battery-powered motor.
Given the current infrastructure, some regions might have fewer EV charging stations compared to petrol stations, making hybrids a potentially more practical choice for some drivers.
When considering insurance, the cover for hybrid cars varies from that of electric cars. Rest assured, we can assist you in comparing both types of cover.
While there isn’t a direct grant for buying an electric car, the government offers an EV chargepoint scheme. This scheme contributes up to 75% of the expenses associated with setting up smart charge points for electric vehicles at specific domestic properties, particularly flats, throughout the UK.
For detailed information on this scheme, you can explore the official GOV.UK website.
There are two kinds of car insurance excess.
Compulsory Excess – This amount is determined by your insurance provider. Should you lodge a claim, you’ll be obligated to pay this sum towards the claim’s total cost.
Voluntary Excess – This is an amount you decide upon, which is in addition to the compulsory excess. Opting for a higher voluntary excess can lead to a reduced premium. However, it’s crucial to ensure that you can comfortably cover both the compulsory and voluntary excess amounts if a claim arises.
Yes, you can add additional drivers into your car insurance policy. Such individuals are termed “named drivers.”
When adding a named driver, it’s imperative to steer clear of a practice known as “fronting.” Fronting occurs when one falsely asserts to be the primary driver of a vehicle, while, in reality, the named (additional) driver undertakes most of the driving.
Engaging in fronting is considered insurance fraud, and legal actions can be taken against those involved.
When you lease the battery of your electric car, it’s essential to inform your insurance provider about this arrangement during the policy initiation.
Battery leasing in EVs serves a dual purpose. Firstly, it offers a reduction in the upfront cost of the vehicle, making electric cars more financially accessible. Secondly, it assures buyers of the battery’s consistent performance throughout the vehicle’s lifespan.
Should the battery’s efficacy diminish below a specified threshold, typically between 60-75%, the manufacturer steps in to either replace or refurbish it at no additional cost. Furthermore, if you decide to sell the car, the battery lease can be effortlessly transferred to the new proprietor without incurring any extra fees.
Ensuring that your car insurance policy covers liability for accidents or injuries is paramount, particularly if you’re charging in areas with high foot traffic.
To mitigate such risks, consider investing in a raised cable protector. This not only secures the cable but also enhances its visibility, reducing the chances of pedestrians tripping over it.
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