Are Electric Cars Cheaper to Insure?

Guide: Are Electric Cars Cheaper to Insure?

You’ve heard that electric cars are cheaper to run — fewer moving parts, no petrol, lower servicing costs. But what about insurance?

There’s a lot of chat out there, so let’s clear it up: electric car insurance can be cheaper, but it depends on a few key things. Here's what you need to know before you start comparing quotes.

💰 So… is EV insurance cheaper or more expensive?

The honest answer? It depends.

In the early days of electric cars, insurance used to be noticeably more expensive. That’s because insurers were still learning how to price them — parts were harder to get, there were fewer specialist garages, and the cars themselves weren’t as mainstream.

But things have changed.

Now that EVs are way more common, and insurers have more data to work with, the gap between EV and petrol/diesel insurance has narrowed. In some cases, it’s even cheaper to insure an EV — especially if:

• It’s a lower-powered model (like a Nissan Leaf or Renault Zoe)

• You’re using it for short commutes

• You’ve got a clean driving record

• You park off-street or in a garage

• You’ve had your licence for a while

High-performance electric cars (like a Tesla Model S or Porsche Taycan)? Still likely to be pricier — just like high-performance petrol cars.

🚗 What affects the cost of EV insurance?

Whether you drive an electric or traditional car, insurers look at the same main things when calculating your premium:

• Driver age and experience

• Location (postcode)

• Annual mileage

• Driving history / claims

• Car insurance group

• Where the car is parked overnight

• Level of cover (third party, third party fire and theft, or fully comp)

For electric cars specifically, a few extra factors come into play:

• Battery replacement cost (even though this is rare)

• Parts availability – though it’s much better now

• Access to EV-trained repair centres

• Vehicle value and performance

🔋 Is it harder to get cover for an electric car?

Not anymore.

Most major insurers now offer cover for electric cars, and many comparison sites have filters for EVs. In fact, a lot of providers now include extras tailored for electric drivers, like:

• Cover for your charging cables and wall box

• Breakdown cover that includes flat battery towing

• Cover for battery leasing, if that applies to your car

When you apply, make sure you let them know the car is leased and owned by a finance company. Most insurers will ask who the registered keeper is — just say it’s on lease finance and they’ll know what to do.

💡 How to keep your EV insurance costs down

Just like with any car, there are a few things you can do to help get a better price:

• Compare quotes from multiple providers

• Add an experienced named driver (if it helps your profile)

• Increase your voluntary excess (but only if you're happy with the risk)

• Limit your mileage if possible

• Park in a garage or private driveway if you can

• Pay annually if it’s affordable — usually cheaper than monthly

• Consider telematics or "black box" policies for younger drivers

✅ The takeaway

Electric cars aren’t the insurance mystery they once were. In fact, insuring an EV is now pretty straightforward — and it can be just as affordable (or cheaper) than insuring a petrol or diesel car, depending on the model and your circumstances.

The best way to know for sure? Get a quote and compare. And if you're ever unsure, just ask — we’re always happy to help you figure it out.