Compare electric car insurance

More and more people are opting for electric cars, not only because they’re considered environmentally friendly, but they can also help keep costs down as fuel prices creep up. Here’s how to get a good deal on your electric car insurance.  

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Is electric car insurance different to other types of car insurance?

All cars in the UK will be in one of the 50 insurance groups and, as a general rule, the more powerful your car, the higher its group number and the more expensive the insurance will be.  

Electric cars use sophisticated technology that’s not quite as everyday as your regular petrol-fuelled car. This can make them expensive to repair, so you’ll tend to find them higher up the insurance hierarchy.  

For example, the electric-powered Nissan Leaf can be found in groups 20-25 compared to its gas-guzzling cousin the Ford Focus, which is in groups 7-14. You could be forgiven for thinking that this automatically means far higher insurance costs. However, insurance companies are starting to realise that electric cars aren’t just a futuristic fad and insurance costs are becoming more competitive.   

Here at Compare the Market, we’ve done our own number crunching and we found that doing your bit for the environment doesn’t need to cost the earth, in fact it can be cheaper. According to our latest Premium Drivers Report (June 2021), the average car insurance premium currently stands at £629. The average annual cost to insure a Ford Focus Ghia is £636.43**, whereas the average insurance cost for a Nissan Leaf Tekna is just £421.76**. 

**Average price amount based on the top five quotes from Compare the Market data from 1 April to 1 July 2021. The average is based on all variations of the vehicle model and uses risk data from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your circumstances. 

What level of cover do I need?

The levels of cover for an electric car are the same as a regular petrol or diesel car: 

  • Third party only – this is the most basic level of cover, and the minimum required by law. This only covers the costs for other people’s damages or injuries, when the accident is your fault. You won’t be able to claim for damages to your own car, or for your injuries. 
  • Third party, fire and theft – this includes the cover from basic third-party insurance, but also covers your own car against damage from fire, as well as theft. 
  • Fully comprehensive – the highest level of cover, comprehensive car insurance covers both the damages and injuries to others, as well as covering you and your own car. It can also include cover for things like legal expenses, depending on the individual policy. 

What optional extras are available with electric car insurance?

You’ll find many of the optional extras that are available for petrol and diesel cars are also available for electric cars. These include: 

  • Breakdown cover – one of the most common extras, if you’re unlucky enough to break down while out on the road, breakdown cover can get you the help you need to carry on with your journey.
  • Personal accident cover – usually included with comprehensive policies, but a useful extra for third-party cover, if you or your partner are killed or seriously injured in a car accident, this can provide compensation.
  • Motor legal protection - if you need to take legal action against another driver, or defend yourself against someone else’s claim against you, this could help cover your legal expenses.
  • No claims discount protection – seeing as a good no claims discount can make your car insurance much cheaper, you might want to protect the discount you’ve worked so hard to build.
  • Courtesy car cover – this provides you with a temporary car to use, if yours is stuck in the garage for repairs after an accident. Some policies may not guarantee that the courtesy car will be electric or a hybrid, so check carefully if this is important to you. 

How much does electric car insurance cost?

While we can’t account for the whole market, we can provide statistics from our own data that can help as a guide.   

The following figures are based on the most quoted electric models from 1 April to 1 July 2021: 

Car make and model

Average annual premium**

Nissan Leaf Tekna

£421.76

MG Motor UK ZS EV Exclusive

£459.12

Renault Zoe Dynamique Nav

£591.33

Tesla Model-3 Long Range AWD

£1,160.35


**Average price amount based on the top five quotes from Compare the Market data from 1 April to 1 July 2021. The average is based on all variations of the vehicle model and uses risk data from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your circumstances. 

What else should I consider when buying an electric car 

Not only will you save on petrol costs, but there are other money-saving opportunities in choosing an electric car: 

  • You won’t have to pay vehicle tax. However, you’ll still need to apply for it. Find out more on the Government website
  • You won’t have to pay the London congestion charge. 
  • Will you lease the battery, or buy it outright? Leasing the battery could make it cheaper in the short term. Just be aware that you’ll have to agree to certain stipulations made by the manufacturer, which both you and your insurance provider will need to understand. 
  • Consider how far you usually travel. Electric cars don’t usually have the same range on a single charge, compared to a tank of fuel. If you regularly make long journeys, you may want to rethink getting an electric car. 
  • Is an electric car suitable for where you live? If you’re getting an electric car, you’ll want to know that there are plenty of charging points in and around your local area. After all, an electric car is no good without a full battery. 

If you’re still not sure about getting an electric car, check out Autotrader’s guide to help you decide whether an electric or hybrid car is right for you. 

How can I get cheap electric car insurance?

Car insurance is based on various factors such as how risky you are as a driver, where you live, where you keep your car at night, your age and even what job you do.   

However, there are ways to reduce your premium, such as restricting your annual mileage, increasing your voluntary excess and even shopping around for car insurance deals.  

Electric cars are here to stay, which means insurance companies are constantly reviewing and upgrading their offers. To help you get an idea of what’s on offer, compare quotes with us. It only takes a few minutes to compare a wide range of insurance providers and find a policy that’s right for you. 

Frequently asked questions

Do all insurers provide electric car insurance?

While not every car insurance provider offers electric car insurance, you should find that most of them do. As the demand for electric cars continues to grow, more and more insurance providers are beginning to insure electric cars. This is good news for you, as it means there are more providers competing, which makes comparing electric car insurance one of the best ways to get a cheaper quote. 

What are the benefits of owning an electric car?

There are quite a few benefits to owning an electric car. Let’s break down the big ones: 

  • They’re better for the environment – electric cars produce zero emissions, which make them so much better for the environment than petrol or diesel cars. If you’re thinking more about your carbon footprint, an electric car is a big step to help reduce it. 
  • They’re cheaper to drive – compared to the cost of petrol and diesel, running an electric car is far cheaper, per mile. 
  • You won’t need to pay road tax – electric cars are exempt from paying road tax, which gives you a nice saving each year. 
  • No congestion charge – if you live in, or work around, London, you’ll be pleased to learn that electric car drivers won’t need to pay the congestion charge. However, you will need to apply for this exemption. 

What is the difference between hybrid and electric?

The difference between hybrid and electric cars, is that an electric car only uses a battery-powered motor, while a hybrid uses both a petrol or diesel engine, as well as a battery-powered motor. Hybrid cars are designed to offer the best of both worlds, allowing you to run off both types of fuel, while reducing your emissions. While electric car charging points are still less accessible than petrol stations, a hybrid is perhaps a more convenient option, while still doing something to help the environment. Some hybrid engines can even charge their battery-powered motor while driving. 

In terms of car insurance, hybrid car insurance is different to insuring an electric car. We can help you with that, too. 

Can I get a government grant to buy an electric car?

Yes, there are two main types of government grant available for people who buy an electric car: 

  • Purchase grant -  you can receive a grant worth up to £2,500 to buy eligible electric cars. To be eligible, the car must cost less than £35,000, with the grant covering no more than 35% of the purchase price.
  • Electric Vehicle Homecharge Scheme (EVHS) – this grand offers a 75% contribution (up to £350) towards the cost of installing an electric car charging point at your home. 

Will I be covered if I break down?

Breakdown cover is an additional type of car insurance cover. It can be added to an existing policy, or taken out as a separate one. The level of breakdown cover you’ll receive may vary, and paying more for a policy will usually get you extra cover. Here are the things a breakdown policy can cover you for: 

  • Roadside assistance - if you’re unlucky enough to breakdown, you can expect someone to come out to your rescue. They’ll try to fix your car at the roadside or tow it to the nearest garage for repairs. If you break down because your battery has run flat, they should tow you to the nearest charging point. 
  • At home recovery – if you’re unfortunate enough to break down before you even set off, or while you’re still close to home, this will cover you for similar assistance. 
  • Onward travel – this will help you continue your travel plans, either by providing you with a courtesy car, while yours is repaired, or cover the cost of public transport, or even accommodation for an overnight stay. 
  • European recovery – if you take your electric car abroad, you’ll need extra cover. You can take out European breakdown cover to make sure you’re protected while away. 

If you’re interested in any of these extra types of cover, be on the lookout for them as you compare policies or speak to your provider. 

What is electric car insurance excess?

Electric car insurance excess is the same as any other car insurance policy. There are two kinds of car insurance excess. 

  • Compulsory excess – this is set by your car insurance provider. If you make a claim on your policy, you’ll have to contribute this amount to your claim.
  • Voluntary excess – this is an extra amount that you can offer to pay, on top of the compulsory excess. You might ask, why would anyone offer to do this? The answer is simple. By offering to pay a higher excess, you can be rewarded with a cheaper premium. If you choose to do this, just make sure you can afford to pay both the compulsory and voluntary excess amounts. 

Can I add additional drivers to an electric car insurance policy?

Yes, you can add additional drivers to your car insurance policy. These are called ‘named drivers’. Named drivers can be added for a variety of reasons. You might share a car with your partner, you might like to use each other’s cars from time to time, or you might have a son or daughter who’s learning to drive and would like to practise in your car. 
 
If you’re planning on adding a named driver, just be careful to avoid fronting. Fronting is when you claim to be the main driver of a car, but it’s instead the additional driver who does the most driving. This is a type of insurance fraud and you can be prosecuted for it.