How much does EV insurance cost, and is it different?
By DonnaGuide overview:
- Electric car insurance is much like regular cover and is a legal requirement, but it's tailored to the specific needs of an EV.
- Alongside the usual protection, it covers EV-specific parts like the battery against damage, fire and theft.
- EVs cost a little more to insure than petrol cars, mainly due to pricier batteries and specialist repairs, but the gap is shrinking fast.
- Smaller EVs like the BYD Dolphin Surf, Dacia Spring and Renault 5 sit in low insurance groups and are among the cheapest to cover.
So, you're thinking about getting an electric car. Good choice! There's now over 2 million EVs on UK roads (ZapMap), coming in all different shapes and sizes and appealing to a whole range of drivers.
EVs are well known for saving you money on running costs, but one thing that's easy to overlook when you're weighing up the switch is insurance. You may have heard that EVs cost a fortune to cover, or that some insurers simply won't touch them. The honest answer is that yes, they are a little bit more expensive, but the gap is closing fast.
In this guide, we'll break down the nuances of electric car insurance, such as how it differs from traditional car insurance, how much it costs, and what's included, giving you all the information you need to make an informed decision.
We discuss:
- What is electric car insurance?
- Is electric car insurance more expensive?
- Why are electric cars more expensive to insure?
- Is battery failure covered?
- Insuring an electric lease car
- How can I keep my electric car insurance costs down?
- Is there a difference between electric and hybrid car insurance?
- What are the cheapest electric cars to insure?
Let's keep this simple. Electric car insurance is very similar to traditional car insurance. It's a legal requirement to drive on UK roads, and provides financial protection against theft, accidents, and other car-related incidents.
The main difference is in the extras. Because an EV has parts a petrol car doesn't, you'll need cover for your battery, charging cables and adaptors against accidental damage, fire and theft. Many insurers go further, adding things like recovery if you run out of charge, or cover for your home wallbox.
When you take out a policy, it's worth checking these EV-specific bits are included rather than assuming they are. The cheapest quote isn't always the best value if it leaves out the cover you actually need.
If you plan on leasing an electric car, you must arrange fully comprehensive insurance from the day of delivery. For more information, check out our guide: Insuring Your Leased Vehicle.
Like any car, insurance prices vary hugely depending on the model, the driver, and where you live. But generally, yes, electric cars cost a little more to insure than their petrol equivalents.
According to MoneySuperMarket, the average annual car insurance price for an EV is around £556, compared to £519 for diesel cars and £491 for petrol.
However, the gap has narrowed in recent years. With insurers holding far more data on how EVs are driven, how often they're stolen, and what they actually cost to repair, prices are becoming fairer.
It's also worth remembering how much the model matters. A small electric car, like the Dacia Spring, can be as cheap to insure as its petrol rival, while a high-performance EV will sit much higher.
Pick wisely, and insurance won't be a barrier to switching to electric.
“Don't let EV insurance put you off before you've checked the numbers. The gap to petrol is closing every year, and for a sensible, smaller EV, it's often non-existent.”
EVs cost slightly more to insure because they come with additional features that can require specialist training to repair:
- The battery - The battery is the most valuable component in an EV. If it's damaged, repair or replacement can be costly, so insurers price that risk in.
- Specialist repairs - EVs need trained technicians and approved body shops. As they are still relatively new to the market, there's fewer of these for petrol cars, which can mean higher labour costs and longer repair times.
- Higher value - Most of the time, EVs are more expensive than their petrol equivalents, so the sum insured is higher, which increases premiums.
- Newer technology - EVs are still relatively new, so insurers have less historical claims data. As that data builds, pricing is becoming more accurate and competitive.
A big part of your premium comes down to the car's insurance group, which runs from 1 to 50. You can learn more in our guide to UK Car Insurance Groups.
Electric car batteries are an impressive piece of kit, but they can cost thousands of pounds to replace.
The good news is that under a fully comprehensive policy, most insurers will cover your battery if damaged in an accident, or if it's stolen.
What they won't cover is your battery failing or degrading over time, but that's where your warranty comes in. Most EV batteries are guaranteed for around eight years or 100,000 miles, which exceeds a typical lease agreement, offers real peace of mind on top of your insurance.
As always, check the wording when you take out a policy.
If you're planning on leasing an electric car, you insure it the same as any other car. You arrange your own fully comprehensive policy and it must be in place from the day your car is delivered.
Comprehensive cover is a requirement of every lease agreement, so ensure that's the policy you go for.
Drive carefully
Building a long no-claims discount makes insurance cheaper whatever you drive. Avoid speeding and points on your licence, as this can push the price up.
Lower your mileage
The fewer miles you drive, the lower your risk in an insurer's eyes. Many EV drivers naturally cover fewer miles, so quote realistically rather than over-estimating.
Pay your premium up front
Paying for the full year up front usually avoids the interest charged on monthly direct debits.
Increase your excess
Opting for a higher voluntary excess can cut your premium, just make sure it's an amount you could comfortably pay if you needed to claim.
Install a black box or smart monitor
A black box rewards careful driving and is especially useful for younger drivers. On a lease car, you must check with your finance provider first before you choose a black box policy.
Consider a dashcam
Many insurers offer a discount for a fitted dashcam, as it provides evidence in a dispute and reduces the chance of an at-fault claim.
Hybrids sit in the middle ground between petrol and fully electric cars, and that's reflected in their insurance too.
You'll still need fully comprehensive cover, but premiums usually fall somewhere between an equivalent petrol car and a full EV.
If keeping insurance low is a priority, smaller EVs with modest power outputs are your friend.
They sit in lower insurance groups and can be genuinely affordable to cover. Here are some of our favourites that won't cost you a small fortune:
Model | Insurance group (from) | Approx. annual premium |
|---|---|---|
Group 14 | £450 | |
Group 18 | £500 | |
Group 20 | £525 | |
Group 21 | £525 | |
Group 24 | £480 |
Ready to find your next EV? Browse our full range of electric car lease deals, with straightforward pricing from an independent leasing broker.
Guide Information
Originally published: 21st October 2020
Last updated: 25th June 2026
