A guide to electric car insurance

At the end of 2020, the UK Government set itself a target to end the sale of new petrol and diesel cars by 2030. In support of this goal, £1.8 billion was pledged towards making zero-emission vehicles more accessible to the public. Part of this funding will be used to roll out chargepoints across the country, making it easier to run your electric vehicle. 

So, with electric vehicles only set to get more popular, is there specialised insurance for these vehicles? Below we explain how you can insure your electric car and what areas of cover you should consider.

Insuring your electric vehicle works in much the same way as insuring a petrol or diesel car. You will still find cover for damage, theft, and breakdown among other variables. However, there are some characteristics of electric vehicles which can change the price of your premium.

At the time of writing, electric cars are typically more expensive than their diesel or petrol counterparts. This means electric cars can be more expensive to insure as your provider risks having to replace a more costly vehicle.

However, if electric vehicles are to be more common to reach the UK Government’s net zero target, they should become cheaper in price and therefore cheaper to insure.

In addition to this, insurers are gathering more data on electric vehicles. When electric vehicles first hit the roads, insurers were unsure of their risks and charged more expensive premiums to cover themselves, according to What Car?, a British monthly automobile magazine. More data means insurers can evaluate your risk more accurately, and therefore could lower previously inflated premiums.

Drivers of hybrid vehicles, which draws on two different energy sources, like battery power and petrol can expect a similar process to insure their vehicle.

In some instance though, insuring these vehicles can be cheaper. This is because they are less powerful than other vehicles and are statistically safer rides. Safer vehicles therefore attract lower premiums.  

Looking for the best car insurance quotes? Use our independent and impartial star ratings to find your best cover options. Our star rating provide consumers with an expert view of the whole market.

Moneyfacts Product Experts undertake an annual review of all the car insurance products available in the UK. Policies are then assigned a star rating based on their attributes. Those that offer the best range of features and benefits are awarded a top rating of five stars. The chart below shows a selection of those awarded four and five stars. View the full list of winners at the end of this page.