A simples guide

Is insurance cheaper for electric cars?

There are still lots of questions about electric cars, they’re nothing new as a concept but in practice they’re not quite as mainstream as they could be – probably because of the myths surrounding them. We can’t tell you what an electric car’s like to drive and whether it’ll feel like driving a giant golf buggy but we can tell you all about electric car insurance – keep reading for more.


Can you get cheap electric car insurance?

It depends on what your definition of ‘cheap’ is. Car insurance is based on multiple factors such as how risky you’re considered as a driver, where you live, where you keep your car at night and even what job you do. The type of car and its fuel is just one other element that’s considered when providers come up with your premium. So if you drive a Maserati your idea of cheap car insurance is probably very different to a Ford Fiesta driver.

All cars in the UK will be in one of 50 insurance groups and as a general rule the fancier your car the higher its group number and the more expensive the insurance will be. Electric cars use sophisticated tech that’s not quite as everyday as your regular petrol or diesel fuelled car, which can make them expensive to repair – so you’ll tend to find them higher up the insurance hierarchy.

Take for example, the electric powered Nissan LEAF, you’ll find it in groups 23/25 compared to its equivalent gas guzzling cousins the VW Golf and Ford Focus which you can find in groups 7-15. You’d be forgiven for thinking that this automatically means far higher insurance costs – but when you factor in your own risk profile and all the other elements providers like to throw in, you could find the sums even out.

Here at comparethemarket.com, we’ve done our own number crunching and we found that doing your bit for the environment doesn’t need to cost you the earth. A regular fuelled Vauxhall Mokka will cost you an average of £328 to insure, compared to the LEAF at an average of £398. So whilst a LEAF is slightly pricier, it’s not necessarily enough to make you ignore your conscience.

And there’s even more good news – insurance companies are starting to realise that electric cars aren’t just a futuristic fad and the cost of insuring your electric car is getting more competitive. We also found quotes for electric cars around the £256 mark.

What else do I need to consider with electric car insurance?

One of the ways you can reduce the cost of buying an electric car is to buy the vehicle but lease the battery. If this is the case, you’ll usually have to agree to certain stipulations made by the manufacturer which you and your insurer will need to be clear about.

Another thing to think about are power cables trailing from a charging point to your car which are of course, a perfect trip hazard. If a member of the public isn’t looking where they’re going and trips on your cable, you could be looking at a lawsuit. So make sure your insurance policy has a big enough public liability clause – alternatively, don’t leave cables lying around unattended.

electric car

What can I do to lower the cost of my electric car insurance?

It’s always worth trying to lower the cost of your insurance even more, so here are some quick and easy points to consider:

• Pay upfront – if you can, pay your insurance in one go, instalments could mean you face added charges.

• Lower your mileage – the fewer miles you drive, the less likely you are to have an accident (harsh but true). Also try and be as accurate as possible when calculating your mileage, overestimating could push you up into the next price bracket – just make sure you’re honest about how far you’re likely to be driving.

• Increase your voluntary excess – offer to stump up more cash in the event of a claim, but make sure you can actually afford the compulsory as well as the voluntary excess in the event of an accident or it could cost you more in the long run.

• Telematics – consider a black box or an app to monitor how and where you drive and if you’re considered a good driver then you could see your insurance lowered more quickly than by traditional methods.

Whether you want to insure a petrol, diesel, electric or hybrid car, we’re powered by comparisons so find out what you could save and start comparing the market today.


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