Insurance is a mandatory requirement to legally drive a vehicle. Insurance provides protection in case of an accident, theft, or damage to the car. The cost of car insurance is based on several risk factors such as the driver's age, driving history, the type and value of the car, as well as the location, where it is based and driven. When it comes to choosing car insurance there are many policy options available and comparison websites can help find you the best deal to suit your needs and budget.
As more drivers make the switch to electric vehicles and new laws are being introduced, understanding electric car insurance is essential. This article will help you understand electric car insurance and the cover you need to stay protected and legal on the roads.
Electric car insurance works the same as any other type of car insurance. Quotes are determined by risk, vehicle history, age, location, occupation, and mileage. Many factors influence the price you'll be quoted.
Defaqto star ratings are worth considering as they assess the quality of insurance policies across various categories, including electric vehicle insurance. These ratings range from 1 to 5 stars and are a great indicator of the level of features and cover you can expect from a policy before purchasing.
In general, there’s not much difference between electric vehicle insurance and traditional car insurance in terms of covering accidents and claims. It is, however, extremely important to note standard insurance features still apply, including:
- Uninsured driver cover
- No claims bonus protection
- Optional excess amounts
- Courtesy car
- Motor legal protection
- Extras like key cover or breakdown cover.
The types of insurance available are the same, from fully comprehensive, to third-party fire and theft policies.
However, a key distinction with EV insurance is the unique parts of electric cars which prove to be of higher cost and lower availability due to the newness of electric vehicles. This is considered during your quote providing a higher overall premium.
While there are many similarities between standard car insurance and electric car insurance there are also some notable differences. For instance, electric car insurance may include:
- Out-of-charge recovery, ensuring assistance if your vehicle runs out-of-charge.
- Roadside charging
- Full battery cover
The option to tow your vehicle to the nearest charging station.
Additionally, electric vehicles come with equipment that standard vehicles do not. This includes essential charging equipment such as cables, connectors, adapters, and sometimes even coverage for damaged charging stations.
EV insurance policies need to take account of the electric battery with various options available depending on the insurer and the policy you choose. Most EV policies today include full battery cover as standard, protecting against accidental damage, fire, and theft. We strongly advise you to always review your policy quotation thoroughly with your insurer before committing, as the battery can be one of the most expensive elements of an electric car.
Currently, EV insurance can be slightly more expensive than insurance for ICE vehicles, however, some providers may offer cheaper policies. As more people make the switch to electric vehicles, prices are coming down and competition is increasing. By shopping around and getting quotes from different insurers and with the help of comparison sites you can find a great deal.
As EVs continue to become more popular and eventually one day will be the only type of car available to buy, we expect policy prices to drop as parts, repairs, and servicing become more common and affordable for owners.
As with car insurance generally, there are multiple things you can do to try and bring your quoted prices down:
- Maximise no claims and transfer them between policies.
- Park or store your car somewhere secure at night and during the day.
- Increase your voluntary excess.
- Some insurers offer ‘online only’ policies which go through an app only and can be cheaper.
- Remove any optional extras such as legal protection or breakdown cover.
These tips can help make your EV insurance less daunting and more affordable.
If you're looking to make the move to EV, check out our full range of EVs on our Electric Hub! If you have any questions, get in touch and a member of our knowledgeable team will be happy to help.