At the time of writing, electric cars command some of the highest average car insurance premiums on the market. This comes down to the replacement cost of vehicles that are uneconomical to repair (i.e. a write-off), and the additional cost of the specialist equipment required to repair an electric vehicle in the event of an accident. Even with the number of electric vehicles on the road ever increasing, high costs such as this are a big reason why more motorists haven’t made the switch.
The insurance group of a vehicle is one of the determining factors in the overall pricing of your policy. The value of the vehicle, the cost and availability of parts, and the ease of finding a competent professional to complete the repairs all come into play, so as more drivers make the move to electric and demand for the vehicles themselves increases, there is potential for costs to begin to fall.
More vehicles on the road also means more information for the insurance companies. It is worth keeping in mind that insurance groups vary from company to company, and is usually based on their own data and experiences. Just because one insurer rates a vehicle highly, it doesn’t necessarily mean the whole market will. There are benefits of checking multiple options, and speaking to someone like us at GSI Insurance Services (Southern) Ltd. is more powerful than ever, as we can check a number of insurance products for you in a short space of time.
Electric Sports Cars & Tesla
While some experts have suggested that electric vehicles shouldn’t need a specialist insurance policy, and even with the insurance industry is attempting to normalise EV ownership as much as possible, owners of prestige electric vehicles, or any Tesla, may find themselves restricted to a few select schemes. This is less to do with being electric vehicles themselves, and more due to the value of the vehicles, with the cheapest Tesla setting you back over £40,000 brand new.
Compare the Market has advised that for electric sports cars ran on their platform, their average premium came out at over £1,200. Generally, the initial acceleration of an electric car compared to their petrol or diesel counterparts can be surprising for a driver with limited experience
In this instance, you may find yourself needing a specialist scheme after all. It is worth keeping in mind that a petrol or diesel vehicle of similar value is often better suited to prestige car insurance anyway, and may also be difficult to arrange via a price comparison site, or speaking directly to a company if they do not have access to relevant schemes.
One option you can consider is to check with a local dealership, especially if you are buying the vehicle from them. Some manufacturers have their own insurance schemes in place, providing preferrential rates with companies who are able to accommodate your vehicle.
Again, over time, higher valued electric vehicles will likely be accommodated by more mainstream insurers as they become more common.
The Future
With the cost of buying a vehicle and arranging insurance already a challenge for younger drivers, it may be a while for under-25s to be able to make the switch to electric. Even for older drivers, there is a perception that the cost of insuring an electric car would be higher, which may put them off from even exploring the option. If costs begin to fall, electric cars may become a reality for more and more road users.
The UK Government are also doing their part, offering up to a £3,000 grant on qualifying purchases as well as up to £350 towards installing a charger at home. As of 2030, it has also been announced that the sale of new petrol and diesel vehicles will be banned, with hybrids being removed from showrooms in 2035. It is a clear sign that the motor industry is moving entirely electric as part of a plan to reduce greenhouse gas emissions.
Over time, costs should reduce. As demand increases, economies of scale suggests that the cost of parts, and therefore overall cost of production will come down. This saving can then be passed onto the customer in the final purchase price of a new car.
If you’re in the market for electric vehicle insurance, it is worth giving us at GSI Insurance Services (Southern) Ltd. a call. We have schemes that can accommodate a number of electric vehicles and hybrids as standard, and if it isn’t one we can accommodate, we can point you in the direction of who might be able to assist you. Give us a call on 0800 612 9376 or click “Get a Quote” to complete our online form.
