Electric vehicles 45 per cent more expensive to insure than conventional motors
Research reveals EV owners are paying around 45 per cent more for insurance than the average motorist
Drivers of electric vehicles are having to pay 45 per cent more for their insurance than owners of conventionally-powered vehicles, a study has found.
The average car insurance premium is roughly £740, but the average cost associated with insuring an electric vehicle is around £1,070.
According to insurance comparison site Comparethemarket.com, who conducted the study, the number of electric vehicle registrations have increased by 32 per cent in the past year.
Following this week’s announcement that the government will ban the sale of new petrol and diesel cars from 2040, those looking to make the switch to an EV will have to factor the increased cost of insurance into this decision.
Comparethemarket.com’s director Simon McCulloch said: “Electric cars can be expensive, as their production has yet to reach a volume which will enable economies of scale in their manufacturing and distribution costs.
“However, people looking to purchase an electric vehicle need to consider carefully the overall running costs, including insurance, as well as road tax and charging costs.
“While many incentives are being taken to promote the use of electric vehicles, including increased numbers of charging stations and tax breaks for electric car owners, this data shows that potential owners need to consider other factors too, particularly for the entry level electric models, where the cost of insurance could swing the purchasing decision back in favour of a petrol or diesel model.”
By analysing its electric car insurance quote data, Comparethemarket.com found that the Nissan Leaf was the most popular EV, accounting for 38.7 per cent of quotes. This was followed by the Renault Zoe and Tesla Model S, both of which accounted for around 15 per cent.
As a part of the Queen’s Speech last month, the Automated and Electric Vehicles Bill was announced. This new bill aims to improve the infrastructure that will support the ownership of EVs, by increasing the number of charging points available. It also seeks to increase consumer adoption of the technology, although Comparethemarket.com believes the high cost of insurance may be a barrier to this.
