Cheap Electric Car Insurance UK

The BBC recently reported that in 2023 car insurance costs have gone up by 60% and now sit at £1000 on average in the UK. Finding cheap electric car insurance is especially hard, due to their complex technology, expensive batteries and high performance, EVs are currently more expensive than petrol cars to insure.

EV owners need to know how to get a better deal on their EV insurance. Getting cheap electric car insurance is hard, but with the right approach and knowledge, you can navigate the insurance market to find a policy that not only suits your unique needs but hopefully aligns with your budget too.

This guide walks you through the essential steps and strategies to unlock competitive rates and comprehensive coverage for your electric car. From understanding the specific factors that affect EV insurance premiums to exploring the various discounts and incentives available, we aim to simplify the process and help you secure a reasonably priced electric car insurance deal.

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Understanding Electric Car Insurance Costs

The cost of insuring an electric car can vary widely, influenced by a lot of factors that also affect traditional car insurance costs:

  • Price of the Car
    The market value of your electric vehicle plays a pivotal role in determining insurance costs. Typically, higher-priced EVs cost more to insure due to the increased costs associated with repairs or replacements.

  • Insurance Group Classification
    Electric cars are categorised into electric car insurance groups based on factors like repair costs, performance, and safety features. Cars in lower insurance groups generally attract lower premiums.

    Be sure to check which insurance group your electric car falls into as this will give you a clue as to weather you will be able to get cheap electric car insurance or not, Tesla owners for example will be looking at insurance groups 45-50 for their Tesla insurance. Most high-performance EVs will be in the top 5 insurance groups. As EV tech becomes more familiar to UK insurers EVs should move into lower insurance groups over time.

  • Level of Coverage
    The choice between third-party only, third-party fire and theft, and comprehensive coverage will impact your premium. Comprehensive cover, while offering extensive protection, is usually the most expensive.

  • Geographical Location
    Your postcode can significantly influence insurance costs. Areas with higher rates of accidents or theft tend to have higher premiums.

  • Driving and Claims History
    A clean driving record with no or few claims can lead to lower insurance rates, while a history of accidents or claims might result in higher premiums.

  • Annual Mileage
    The distance you drive annually can affect your premium. Higher mileage can lead to higher insurance costs, as it increases the likelihood of an accident. If your mileage is low, consider Pay As You Go insurance for your electric car, this type of policy fairly reflects the usage of the car, meaning you could get cheaper insurance if you genuinely drive fewer miles.

  • Parking Location
    Where you park your electric car overnight, whether on a street or in a secured garage, can also affect your insurance rates. Secure parking typically leads to lower premiums.

  • Driver’s Age
    Typically, younger EV drivers’ insurance will cost more due to their perceived inexperience, whereas older drivers looking for over 60s car insurance or over 70s insurance, should benefit from lower insurance rates.
Row of EVs on charge in the sunshine

Is Electric Car Insurance Different to Normal Car Insurance?

EV car insurance is similar to normal car insurance in terms of the fundamental coverage options and processes involved. When insuring an EV, you will still have the same range of cover levels and a variety of policy extras to choose from.

The three primary levels of electric car insurance coverage are:

  1. Third-Party Only
    This is the most basic insurance level and the minimum legal requirement. It covers damages or injuries to others caused by your vehicle, but it does not cover damages to your EV or personal injuries.
  2. Third-Party, Fire and Theft
    This includes the coverage provided by third-party only insurance, but it also protects against fire damage to your car and theft.
  3. Comprehensive
    Offering the highest level of coverage, comprehensive insurance covers damages and injuries to others, as well as damages to your own car and personal injuries.

What Additional Extras Can You Get With Electric Car Insurance?

Many of the optional extras available for petrol cars are the same with EV insurance, there are unique additional cover requirements for EVs.

Battery Cover
The battery is the most important part of an electric car and also one of the most expensive components. The best insurance policies for EVs often include specific coverage for battery damage or degradation, which is not a consideration in traditional car insurance.

Personal Accident Cover
This optional extra provides compensation in the event that you, your partner, or your passengers are seriously injured or killed in a car accident. It’s an important consideration for comprehensive protection.

Electric Car Breakdown Cover
Breakdown cover for electric vehicles often goes beyond standard services. It should include recovery to the nearest charging point if your EV runs out of battery. Some services, Such as the RAC and AA even offer on-the-spot charging, allowing you to continue your journey with minimal disruption.

Legal Protection
Also known as legal cover, this option can cover legal expenses if you need to take action against another driver or defend against claims made against you. An example where this might be relevant for EV owners is if someone is injured by tripping over your charging cable.

Tesla red and white supercharger in the countryside

No-Claims Discount Protection
This feature allows you to safeguard your no-claims discount, ensuring that your insurance rates don’t increase after an at-fault accident.

Charging Cables Cover
Given the importance of charging cables for an EV, insurance policies should cover the loss or theft of these cables, whether it’s a portable granny charger that has been taken from your car or your home charger damaged during an accident. This cover is typically standard in electric car insurance policies.

Courtesy Car Cover
In the event that your EV requires repairs after an accident, a courtesy car cover ensures that you have access to a temporary vehicle, ideally an electric vehicle!

How to Get Cheap Electric Car Insurance

Getting cheap electric car insurance requires a blend of smart shopping, understanding the nuances of EV insurance, and employing strategies to reduce premiums. 

To begin with, you have to compare policies from multiple insurance providers. Don’t just settle for the first quote you receive; using online comparison tools can be an effective way to quickly assess rates from different insurers. Not all car insurance providers are on comparison sites (Adrian Flux, Direct Line & NFU Mutual), so it’s a great idea to check with those insurers directly and see what they can offer.

Another way to potentially lower your premium is to opt for a higher voluntary excess. This means you agree to pay more towards any claim you make. However, it’s crucial to ensure that the excess is an affordable amount for you in the event of a claim.

When choosing your electric vehicle, if you really want cheap EV insurance you should consider opting for a car that falls into a lower insurance group, as these typically come with lower premiums and help lower your overall risk profile. It’s important to think about the total cost of ownership, not just the purchase price but also potential insurance costs when selecting your EV.

Maintaining a good driving record to benefit from no-claims discounts, insuring multiple electric cars with the same provider, or qualifying for low mileage discounts if you drive fewer miles, are all worth considering as part of a strategy to reduce EV insurance costs.

The security of your vehicle is another factor that can influence insurance costs. Parking your EV in a garage or secure location overnight can decrease the risk of theft, thereby potentially lowering insurance premiums. Additionally, installing anti-theft devices can also lead to discounts.

Think about paying for your policy annually instead of monthly, this should make your insurance cheaper because you do not have to pay the interest added to the monthly instalments. It’s also a great option if you are looking for bad credit EV insurance, as you are unlikely to need a credit check if you are paying annually for your insurance.

Also, consider telematics policies. These usage-based insurance policies calculate premiums based on your driving behaviour, tracked via a telematics device. Insurers also offer discounts specifically for electric or hybrid vehicles, known as green vehicle discounts.

The Final Word on Cheap Electric Car Insurance

Finding cheap electric car insurance can be helped by considering the unique aspects of insuring electric vehicles and employing strategic approaches to selecting and managing your policy. If you do this, you can secure coverage that is both comprehensive and cost-effective.

From choosing the right electric vehicle and insurer to optimising your policy features and leveraging available discounts, there are numerous ways to manage the cost of your EV insurance.

It’s important to remember that the cheapest policy might not always offer the best value. Balancing cost with the quality of coverage is key to ensuring that you have the EV insurance cover you need without overspending.

This article is intended solely for informational purposes and should not be considered as advice. It is important to consult the specific terms and conditions of an insurer before making any commitments to financial products.

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