How does insurance work for an electric car?

In the past few years, more drivers have switched from petrol and diesel cars to electric vehicles. With this, there are a few costs to consider, including insurance. Cost also plays an important role — electric vehicles are more affordable to run, but is electric-car insurance more expensive than cover for petrol and diesel cars? Find out more below.

Electric-car insurance has specific policies and features you won’t find in your typical petrol- and diesel-car insurance cover. An electric-car policy ensures all elements of your vehicle are covered by your insurance. Some of these electric-specific policies include: 

 

 

• Cover for your electric-car battery:  Some policies cover your electric-car battery against accidental damage, including damage by fire and theft.. 

 

• The BYD Blade Battery is one of the safest EV batteries on the market. It has successfully passed the nail-penetration test without emitting smoke or fire and the battery’s honeycomb structure gives enhanced strength. 

 

 

• Out-of-charge recovery:  If you run out of charge on the road, your insurance may include ‘recovery to charging points’. This will cover topping up your charge and getting you back on track. 

 

• Cover for charging accessories: Home charging points, adapters and charging cables should all be included in electric car insurance policies. This should cover replacements if these accessories are damaged or stolen. Your charging point may also be covered by your home insurance, but be sure to check if this is the case. 

 

• Electric-charger liability cover: Electric-car chargers are covered if you cause an accident while it’s attached to your car — for example, if someone trips on the cable. 

The average annual insurance cost of an electric car in May 2024 was £910¹, which works out at approximately £75 per month.

In short, yes. Claims for EVs are estimated to be around 25.5% more expensive than ICE cars². This is due to a combination of specialised mechanics, repair costs and parts availability.

 

But let’s not forget the savings you stand to make by switching to an EV in the first place. Electric cars are a more affordable alternative to ICE cars, due to the reduction in fuel costs, home charging, and grants available.  

 

Electric-car insurance is also becoming more affordable over time, closing the gap between the cost of electric and petrol and diesel car policies. 

 

As EVs become more popular, a greater number of these cars will be registered on the roads. We have already seen parts become more readily available, reducing overall insurance costs. Plus, more independent mechanics are becoming familiar with EV technology. This is essential for potential EV buyers because they’ll no longer feel an impact on their finances by choosing to drive electric. 

 

Studies have already found this to be true. In 2021, the average electric car insurance costs came to approximately £1,238 a year (£103 monthly)³. In comparison, in 2022, the average cost worked out at £1,097 a year (£91 monthly) — showing a reduction of £141. This is set to reduce further over time. 

As EVs have become more popular, most insurance companies will insure electric vehicles. This makes it easier for drivers to make the switch to electric driving from petrol and diesel. 

 

In the unlikely event that a mainstream insurance company doesn’t offer an EV insurance policy, there are many that do and even specialist insurance companies that can tailor policies for low-emission vehicles. 

 

If you’re making the switch to an electric vehicle or you need to renew your EV insurance, you might find it’s a little more expensive than your previous ICE- -vehicle insurance policy. This is estimated to reduce over the next few years as electric vehicles become the norm. 

While insurance costs come down, you’ll still be able to take advantage of lower charging costs, reduced car- -tax payments and some of the most advanced technology on the market. Explore BYD’s electric vehicles to discover emissionss-free driving with innovative, industry-leading technology. 

Find out more about the benefits of an electric car and explore more about how electric cars are different to petrol and diesel cars in our guides.

¹ https://www.autocar.co.uk/car-news/consumer/electric-car-insurance-cost
² https://www.electriccarscheme.com/blog/why-is-electric-car-insurance-so-expensive
³ https://www.moneysupermarket.com/car-insurance/electric-car/