Electric Car Insurance
Here we’ll look at the potential costs of electric car insurance, how to get a cheaper quote and what to consider when driving an electric vehicle (EV).
Is electric vehicle insurance different from other types of car insurance?
Electric car insurance is very similar to standard car insurance in that you’ll be choosing from the same levels of cover and similar policy extras.
The main difference is that you’ll also need cover for your battery and charging cables – these will be included as standard with electric vehicle insurance.
Just like car insurance, there are three levels to choose from:
Third party only: The most basic level of cover and the minimum required by law. It covers damage to other cars and other people, but not your own car or your injuries.
Third party, fire and theft: The same as third party, but also covers for damage from fire and theft.
Comprehensive: The highest level of cover available, covering damages and injuries to others, as well as covering your own car and injuries.
Do all insurers do electric car insurance?
There are car insurance providers who specialise in electric car insurance, offering electric car owners a range of insurance features which include what you’d expect of a standard car insurance policy, as well as some which are specific to electric cars.
These can include car recovery to the nearest UK charge point if your battery runs flat mid-journey, cover for your charging cables and wall box, and repairs specific to electric cars.
Some of the bigger car insurance providers have started to include electric cars under their standard car insurance policies rather than requiring a specialist car insurance policy.
What do I need to get a quote?
To get an electric car insurance quote, you’ll often need to give the following information:
- Vehicle details and modifications: The registration number is usually the easiest way to do this
- Usage: Social, commuting, business for example
- Mileage: What you cover in a year on average
- Your personal details: Age, address, employment status
- Driving history: How long you’ve been driving for, any previous claims and any medical conditions
How much is electric car insurance?
Electric cars often sit in higher insurance groups due to their advanced technology which can be harder to find replacement parts for. However, as most electric cars aren’t as powerful as diesel or petrol powered vehicles, this can help bring down the cost of insurance quotes.
Just like insurance for other cars, the following factors will play a part in the cost of your insurance:
- The price of your car
- Its insurance group
- The level of cover you choose
- Your age and driving history
- Where you live
- Your claims history
- Your annual mileage
- Where you park your car overnight
Are electric cars more expensive to insure?
While electric cars aren’t the cheapest cars to insure as their parts can be harder to source, they’re still not as expensive as most high-performance cars.
However, the discount that some providers offer on electric car policies coupled with lower fuel costs can offset the higher insurance premiums.
It’s predicted 40-50% of new vehicles by 2025 will be electric or hybrid1. As the infrastructure in the UK improves and the market continues to grow, this may also have a knock-on impact on insurance, with greater choice expected when shopping around for car insurance deals.
How to get cheap electric car insurance
Car insurance is based on a range of factors, including your age, driving history, where you park your car, and more. But there are some things you can do to reduce the cost, such as:
Adding a black box to your vehicle: This will track how you drive. If you’re a safe driver, your premiums may reduce when you come to renew.
Adding an experienced driver to your policy: A named driver with a good driving history can bring down the cost of your premiums.
Paying a higher excess on your policy: This is the amount you pay out when you make a claim. Often the higher it is, the cheaper the premium. Just make sure you can afford the excess.
Parking your car off street or in a secure garage: This makes it harder to steal and can cut the cost of your car insurance.
Electric car insurance extras
There are extras included with electric car insurance as standard, and some optional extras.
Usually included as standard:
- Battery cover: Covering the car battery if it’s stolen or damaged by fire or an accident.
- Portable charging cables cover: In case your cables are lost or stolen from your car.
Optional extras:
- Electric car breakdown cover: As well as the usual breakdown cover, electric car breakdown cover should also cover you for transport to the nearest charging station if your car runs out of charge.
- Courtesy car cover: If you need a courtesy car when your EV is in the garage following repairs.
- Personal accident cover: This can provide compensation if you or a passenger dies following an accident.
- Motor legal protection: Legal cover if you need to bring a legal claim against another driver or someone brings a claim against you.
Electric vehicle benefits
Reduce your carbon footprint: EVs don’t emit exhaust emissions which makes them better for the environment.
Repair and servicing costs: There are fewer moving parts in an electric car, which means there’s less chance of something going wrong.
Quieter engines: EVs are much quieter than petrol or diesel engines which can enhance your driving experience.
No congestion and/or clean air zone charge: Electric vehicles are entitled to a 100% discount for congestion charges under the Cleaner Vehicle Discount (CVD) which means you don’t need to pay the charge in cities like London, Birmingham, Oxford or Bristol, and any areas which bring this in across the UK.
Parking: Often, you’ll find free or subsided parking for electric vehicles.
Things to consider with electric cars
If you’re thinking about getting an electric car, you may want to consider the following:
Electric car range: You’ll see the electric car range stipulated by manufacturers, which is how far the car can go on a single charge. The range you need depends on how you use your car and how many long journeys you usually take.
At home-charging: Installing a charging unit at your home can cost around £800 to £1500. If you live in rented accommodation or a flat, you can get a £350 grant from the UK government to install your charging point, under the Electric Vehicle Chargepoint Grant. You’ll also need to factor in the increased energy costs from charging your electric car at home. Learn more with our helpful guide on the cost of electric cars.
Charging point locations: More and more are popping up now the infrastructure is improving in the UK. If you’re heading on a long journey, there are plenty of apps that will help you find charging points along your chosen route.
Electric Car Insurance FAQs
- Will all electric cars pay road tax in 2025?
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From 1 April 2025, electric cars will have to pay the standard rate of Vehicle Excise Duty, also called road tax. The only exception is new zero emission cars registered on or after 1 April 2025. These cars will pay the lowest first year rate of Vehicle Excise Duty, then they must pay the standard rate from the next year.
- What is the cheapest electric car to insure?
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The cheapest electric cars to insure tend to be the least powerful with the lowest ranges. According to data from 2024, the cheapest electric car to insure in the UK is the Fiat 500 70kW Red 24kWh2.
- Can I get a grant from the government for an electric car?
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Under the Electric Vehicle Homecharger Scheme (EVHS), you used to be able to get a government grant of £350 to install a charger at home – this was for people who owned their homes and had off-street parking. This was then changed in 2022 to include only people who live in flats or rented accommodation. It’s now called the Electric Vehicle Chargepoint Grant (EVGC)
- Why are Teslas so expensive to insure in the UK?
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If you drive a Tesla, you may find that the insurance costs are higher than some other electric vehicles. This will likely be down to higher repair costs due to advanced technology, expensive parts and the potential for significant damage in accidents
- Do electric cars need an MOT?
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Yes, electric cars in the UK need an MOT every year after they are three years old.
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