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Electric cars nearly 50% more expensive to insure

Paloma Kubiak
Written By:
Paloma Kubiak

Drivers wanting to do their bit for the environment by travelling in electric cars pay an average of £330 more per year to insure their vehicle.

The average cost to insure an electric car comes in at around £1,070, which is 45% more than the price of insuring a regular vehicle (average premium of £740).

Given the government’s announcement this week that the sale of new petrol and diesel cars will be banned from 2040 and the fact that the number of electric car buyers continues to rise (32% in the past year), comparethemarket.com warns that drivers will need to weigh up the higher insurance costs with the idea of ‘going green’.

The comparison site’s analysis of electric car insurance quote data reveals that the Nissan Leaf was, by some way, the most popular electric car with 38.7% of quotes, followed by the Renault Zoe and the Tesla Model S which both had just over 15% of quotes.

Simon McCulloch, director at comparethemarket.com, said: “Electric cars can be expensive, as their production has yet to reach a volume which will enable economies of scale in their manufacturing and distribution costs.

“However, people looking to purchase an electric vehicle need to consider carefully the overall running costs, including insurance, as well as road tax and charging costs.

“While many incentives are being taken to promote the use of electric vehicles, including increased numbers of charging stations and tax breaks for electric car owners, this data shows that potential owners need to consider other factors too, particularly for the entry level electric models, where the cost of insurance could swing the purchasing decision back in favour of a petrol or diesel model.”

See YourMoney.com’s Are electric cars worth the money? to find out more about their features and affordability.