How much does electric car insurance cost?
Last Modified 16th of February 2021
Electric cars are still a relatively new thing and while there are a few models already available and a few more set to be launched in the near future the jury is still out on whether they make a good financial investment. One of the hardest factors to consider is perhaps the insurance costs as most insurance companies currently will not insure electric cars. For this reason it is hard to tell whether insurance costs are likely to be higher or lower than regular petrol or diesel cars.
Why they might be lower
Generally electric cars are slower than their petrol counterparts – this is a necessity to make the range of the batteries high enough to be practical. Slower cars of course cause less damage when they crash and are less likely to crash. Electric cars may also be driven fewer miles, partly because of the lower speed and also reduced range of a full tank. They are likely to be used more as occasional “run arounds” rather than long distance commuters.
Why they might be higher
But the risks of electric motoring are still relatively unknown so insurance companies are hesitant. The higher cost of an electric car will also be a factor and the unknown risks are generally expected to result in higher premiums. Also, the lack of insurers who will offer these policies inevitably means that there will be less competition driving down the costs.
All in all it is hard to say exactly what the cost of electric car insurance will be, the simplest way to find out is to get a quote from a specialist insurer and compare it to a regular vehicle and then weigh up for yourself whether an electric vehicle makes financial sense for you.