Published: 16/12/2020
  • Average annual premium for electric vehicles was £629 over the past year compared to £718 for petrol and diesel cars
  • This cost reduction adds to the savings made on fuel and road tax when making the switch to electric cars
  • Electric car owners can still secure significant savings by switching insurance provider with the cheapest premiums available standing at £572

16 December 2020 – Electric cars are nearly £90 cheaper to insure than the average for petrol and diesel cars, according to new research by comparethemarket.com. The new statistics give further evidence of the financial benefit of making a greener choice when buying a car.

The average premium for electric cars over the past year stands at £629, compared to the average premium for petrol and diesel cars which is £718. Over the past year, the average insurance cost for electric cars has fluctuated significantly, reaching a peak of £691 in December 2019 and then dropping to £592 in April 2020 during ‘lockdown’.

There are significant savings available to those who have an electric car, with the average cheapest premium at £527 significantly lower for electric car drivers than petrol or diesel drivers. If a driver was to switch to the cheapest premium for an electric car from the average premium on a regular vehicle, they could save £191.

Lower premiums provide further evidence of the savings that can be made by switching to a greener vehicle. Not only are average car insurance premiums lower but savings can also be made on road tax. Tax does not need to be paid on cars which do not emit carbon and cost less than £40,000. In addition, significant savings can be made on the cost of fuel which remains one of the largest ongoing expenses for drivers of petrol and diesel cars.

Electric cars have been growing in popularity over the past years, with data from SMMT indicating that the market share for battery powered electric cars is increasing – from 2.2% to 6.7% between September 2019 and 2020.

Dan Hutson, head of motor insurance, comparethemarket.com commented:

“Although electric cars represent a small proportion of the total car market, the popularity of greener vehicles is growing at a rapid rate. When the technology initially emerged to challenge the status quo, the cost of electric cars acted as a deterrent with prices significantly higher than traditional models. However, our data indicates that electric cars bring significant financial as well as environmental benefits, which will be welcome news given the target to phase out new petrol and diesel cars by 2030. For those looking to save money or considering buying a new car, switching to an electric car could be an attractive option considering the savings on insurance, fuel and tax.”

Notes to editors:

All data sourced from comparethemarket.com.

About comparethemarket.com

comparethemarket.com was launched in 2006 and has grown rapidly over the past 14 years to become one of the UK’s leading price comparison websites.

comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.