Insuring Your Electric Car

Car insurance is a legal requirement for anyone that owns or drives a car in the UK, and that includes electric cars.
Third-party coverage is the minimum legal requirement, and you need to be insured even if you leave the car parked at all times – unless it’s declared off-road with a Statutory Off Road Notification (SORN). That said, you should always explore your options and find a level of coverage that suits your circumstances. A cheaper premium could end proving more costly should you face damage not covered in your policy. In this article, we look at the coverage available for electric cars – from the non-negotiables to the nice-to-haves.

The insurance policies available for electric cars are essentially the same as those for petrol and diesel models.
Cars are sorted into insurance groups based on how much of an insurance risk they present, with cars in group one paying the lowest premiums and cars in group 50 being the most expensive to insure. Electric cars are also eligible for the usual types of insurance policy, allowing you to choose from third-party only, fire and theft, and comprehensive cover. Electric car insurance policies do tend to include some additional elements, including specific cover for your battery and charging cables. Always check what’s included in a policy document, and make sure you’re getting the coverage you need.

Insurance policies for electric cars may include the following, either as part of the policy or as an optional extra:
• Recovery to a nearby charging point should you run out of charge. Electric cars need to be professionally towed in the event of a breakdown, so this could help offset the cost. • Cover for electric car battery in the event of failure, accidental damage, damage by fire, and theft. • Cover for charging equipment and accessories, including the cables, home charging points, and adaptors, in the event of accidental damage, fire and theft. • Liability cover for your electric car charger, which can contribute should you be found responsible for causing an accident with your charging cable (for example, someone trips over it and injures themselves). Always read the fine print to establish what is and isn’t covered, how much of an excess you’d be expected to pay, and how a claim could affect your premium going forward.

Yes, you’ll probably find insuring an electric car costs more than a comparable petrol or diesel vehicle at the moment.
Quotes will vary between providers, so it pays to shop around and find a deal on coverage that works for you, but generally insurance costs are higher because the cost of replacing or repairing parts in electric cars is also higher and more specialised. In most cases, electric cars cost more than petrol or diesels to buy, and more valuable items cost more to insure. With cheaper electric cars entering the market, this may soon change. Many electric car insurance policies include battery cover, which can drive quotes up as batteries are costly to fix and replace. Insurers can also cover over-the-air (OTA) software updates, which add to the policy price. Further to this, specialists are needed to repair electric cars, and there simply aren’t many about at the moment. The cost and availability of parts is another factor driving costs up. As electric cars become more popular and supply and demand even out, expect the price of cars and parts to steady. Remember that the insurance group is only one factor – your driving history and risk profile will also be considered. Here are our tips on bringing your insurance costs down. Currently, fewer insurers are offering policies, so prices are less competitive. As electric cars become more popular and commonplace, we expect insurance costs to drop as increased demand encourages better competition.

This is a detail worth checking. Replacing an electric car battery can cost thousands of pounds, so knowing whether you’re covered is important.
The answer will vary depending on the provider. Most policies should pay out if the battery is stolen, accidentally damaged or damaged by fire (specialist electric insurance policies almost certainly will). But the policy may not cover you if the battery fails, similar to how worn brake pads or clutches aren’t usually covered. Check the wording of the policy and confirm details with the provider so you don’t get caught out. Keep in mind that most electric car batteries come with their own warranty, which will likely last at least five years (with most having eight years), so that should offer some peace of mind alongside an insurance policy.

When getting an insurance quote, you’ll need the following information to hand:
• Details of the car, including make, model and year. • Your details, including name, age and address, plus any driving convictions. • The annual mileage you expect to do, and type of use. • Details of any claims made in the past five years. • Type of cover you want: comprehensive, fire and theft, or third party only. Insurers may take into account the safety features of your EV, as well as any maintenance and upkeep you commit to. Regular maintenance and safety features can sometimes result in lower premiums – but make sure you ask and read the contract to confirm.

Most mainstream insurance companies offer electric car insurance. Providers including Aviva, Admiral, Direct Line, NFU Mutual and LV all now have cover for electric cars. Some offer specialist coverage, while others include electric cars in their standard policies.
Electric cars only entered the mainstream over the past few years, so some providers don’t feel they can accurately benchmark and set their premiums based on the limited data available, and so don’t yet offer electric car insurance. Gather quotes from multiple insurers to ensure you're getting the best coverage at a competitive price. Remember to thoroughly review the terms and conditions of any insurance policy, and ask your insurance provider specific questions related to your electric vehicle. Keep any documents related to your electric car’s purchase, maintenance, and any upgrades, as these can be useful in the case of a claim.

With car insurance, the price of your policy will depend on several factors, including:
• The price of your car, and the insurance group it’s in • The level of cover you choose • Your age • Your postcode • Where you park your car overnight • Your driving and claims history • Your annual mileage Car insurance is also based on the risk you pose as a driver and how you drive. You can consider several measures to bring your premium down, such as restricting your annual mileage, adding a black box to monitor your driving, and increasing your voluntary excess. Increasing your voluntary insurance can reduce the cost of your car insurance quote, but increases the cost of making a claim – so work out what suits your budget. As ever, take the time to read about your options and find the right insurance policy for you, and always check the small print of your contract before you sign. Learn more about car insurance and find the latest deals on new insurance cover, or find new electric cars on Auto Trader.