Electric car insurance explained: everything you need to know

March 31, 2021 by

One of the biggest appeals of an electric car is how cheap they are to run. Electricity is much cheaper than petrol, and you don’t have to pay road tax at the moment.

Often overlooked and not really mentioned is the cost of insurance. Are electric cars more expensive to insure, and do you need a special policy? In this advice guide you’ll find out.

Do I need to insure an electric car?

Just like any other car, you do need to insure an electric car to use it on UK roads. These can be either third party or comprehensive policies, but you’ll still need one.

If you don’t insure your electric car and you’re caught driving it, at the very least you’ll be handed a £300 fine and six points on your licence. If the case is taken to court, there’s no limit on a fine and you could be disqualified from driving.

The police also have the power to seize your car and even destroy it in some cases. Basically, don’t drive uninsured.

Is it more expensive to insure an electric car?

Insurance prices vary hugely depending on the car you’re insuring and your own circumstances but, as a general rule, electric cars are typically a little more expensive to insure than a petrol-powered equivalent.

The gap isn’t as large as it once was, as prices for electric cars have come down a little, repairs for them have become more commonplace and there’s the advantage that they’re less of a target for theft.

With their higher prices and generally generous levels of equipment though, they still cost a little more to have covered.

How much does it cost to insure an electric car?

This is one of those ‘how long is a piece of string’ questions, and varies hugely on a number of factors. Just like any normal car, it depends on your own personal circumstances — including accident history, where you live and your driving experience — plus the car you’re insuring.

The same factors are taken into account when getting an insurance quote for an electric car, so the process is the same as taking out any normal policy.

Who offers electric car insurance?

Which providers will cover you depends on your circumstances of course, but the same insurers that can offer you a policy for a conventional car can do so for an electric vehicle.

This means you can look for your coverage in the usual places like comparison sites or calling providers directly – there are no extra hoops to jump through.

Do I need a special electric car insurance policy?

Typically, you don’t need a special electric car insurance policy to cover your electric vehicle. Some insurers may offer them extra incentives, but any policy that covers the vehicle, be that third party or comprehensive, is just as valid.

Are battery failures covered by insurance?

This will vary depending on the provider and your policy, but there some insurance providers do offer coverage of the electric car’s batteries in the event of it failing.

The exacts of these again do vary, but can include fire and accidental damage, breakdown coverage and even cover for the vehicle’s charging cable or your wallbox charger.