Electric cars cost an average of 14 percent more to insure than equivalent petrol and diesel cars, new research reveals.
Analysis by Vantage Leasing shows that EV owners are paying an extra £116 a year, but cover could cost as much as 37 percent more than the same car with an internal combustion engine.
By 2025, motorists could be paying an additional £231 million in insurance as the number of electric cars hits two million, says the company.
Surprisingly, the analysis revealed that insurance is usually cheaper when the electric car is parked on the road overnight, rather than in the garage
‘Optimism could be curtailed’
Rob Walker, Vantage Leasing managing director, said: “There’s no doubt UK motorists are ready for EVs. Demand is growing because the technology and infrastructure is getting better every year.
“However, this optimism could easily be curtailed if the costs mount up. After all, electric cars are touted as being both kinder to the environment and easier on the wallet, so the industry must ensure they are affordable to ensure they become increasingly popular.”
The Nissan Leaf is the UK’s most popular electric car, costing £992 on average to insure, over £500 more than the average UK insurance cost of £471 for comprehensive cover.
Of the vehicles analysed, the Renault Zoe and Renault Clio showed the biggest difference, with the former coming in 37 percent (£244.10) more expensive to insure compared to the Clio.
Electric vehicles (annual insurance)
|Hyundai Kona Electric||£728.12|
Petrol or diesel equivalent models (annual insurance)
|Volkswagen Golf 1.5 TSI R-Line||£709.91|
|Renault Clio 1.5 dCi 90 GT Line||£651.22|
|Hyundai Kona 1.0 T-GDI SE||£660.16|
|Audi Q8 55 TFSI S Line||£1,444.37|
|Volkswagen Up 1.0 High Up||£642.29|
These figures are based on annual cover and an average of multiple quotes.
You can cut the cost of your electric car insurance by shopping around or by using a price comparison website. Never accept a renewal quote, as there’s very little reward for loyalty in the car insurance world.
We’d also point out that the Vantage Leasing analysis is based on particular engines and specs. You could find that the cost of insurance could be reduced by selecting a different engine or trim level.
The Volkswagen Up is actually cheaper to insure than the e-Up in High Up spec, so further savings could be achieved by opting for an alternative trim level. Do your homework and shop around.