The Short Answer

It’s one of the first questions people ask when switching to an electric car: will it cost less to insure? The honest answer is; not necessarily. At the moment, electric vehicles (EVs) are often slightly more expensive to insure than petrol or diesel cars. That’s mainly due to the higher cost of parts and specialist repairs. But the gap is narrowing fast as more EVs hit UK roads and insurers get used to them.

So while EV insurance isn’t always cheaper yet, it’s heading in that direction.

Why Electric Car Insurance Can Cost More

Several factors make insurers cautious about quoting low premiums for electric cars:

• Higher vehicle value: Most EVs cost more upfront than their petrol equivalents, so payouts are higher if they’re written off or stolen.
• Expensive repairs: The battery pack is costly to fix or replace, and not every garage is trained to handle high-voltage systems safely.
• Limited repair networks: Specialist parts and fewer qualified technicians mean longer repair times and higher costs.
• Less claims data: Insurers rely on past claims to calculate risk. Because EVs are relatively new, they have less historical data to go on.

In short, EVs are still a new frontier for insurers; and they price that uncertainty into the premium.

When Electric Cars Can Be Cheaper to Insure

That said, there are plenty of exceptions. Some electric models, particularly smaller hatchbacks and family cars, are now just as affordable to insure as similar petrol cars. As battery prices fall and more garages gain EV training, premiums are steadily coming down.

Drivers also tend to treat EVs more carefully; smoother acceleration, fewer harsh braking events; which means fewer accidents and claims over time. Insurers notice that too.

Tips for Lowering Your EV Insurance Premium

If you’re thinking about an electric car, here are a few things that can make a difference when you start comparing quotes:

• Choose a mainstream model: Common EVs like the Nissan Leaf, Kia Niro EV or MG4 tend to be cheaper to repair than rare or high-performance cars.
• Check the insurance group: Electric cars, like any others, fall into insurance groups. Lower numbers usually mean lower premiums.
• Keep it secure: Off-street parking, alarms, and trackers still make a difference; especially for desirable models like Teslas.
• Check what’s included: Make sure the battery and charging equipment are covered, and find out if recovery from a flat battery is included.
• Compare quotes properly: Use a few UK comparison sites and get direct quotes from specialist EV insurers such as LV=, Admiral, and Direct Line.

It also helps to mention low mileage and careful driving habits if you’re retired or mainly use the car locally. Many insurers now reward that with lower premiums.

Don’t Forget the Overall Savings

Even if the insurance is a touch higher, running costs for EVs are generally lower; cheaper energy per mile, no road tax (for now), and less maintenance. When you look at the full picture, many electric car owners still save money overall compared to petrol drivers.

And as more used EVs enter the market, insurance prices are likely to keep falling. It’s just a matter of the industry catching up with the technology.

Useful UK Resources

• RAC – Are electric cars cheaper to insure?
• MoneyExpert – Electric Car Insurance Guide
• AA – Electric Car Insurance Advice