The average cost of insurance for an electric vehicle has fallen by £75 in the first quarter of 2021, according to new data released today.
Electric owners will now pay an average annual premium of £566, down from £641 in the previous quarter. It means that electric vehicles are now typically £45 cheaper to insure compared with petrol and diesel cars.
The figures, released by comparison site Comparethemarket, show a fluctuation in the cost of electric car insurance over the years. It reached a peak of £692 in December 2019, before dropping back to £550 in February 2021 as lockdown measures continued to restrict travel.
Dan Hutson, head of motor insurance at Comparethemarket.com, said: “Electric vehicles are rapidly growing in popularity ahead of the Government’s target to phase out new petrol and diesel cars by 2030. The transition to electric vehicles will be vital in tackling climate change, but the higher upfront cost of these cars compared with traditional models has often been a deterrent for many motorists.
“Drivers making the switch to greener vehicles will be glad that our research shows electric cars could bring significant financial as well as environmental benefits over time. If drivers are considering buying a new car, then an electric vehicle could be an appealing option considering the savings on insurance, fuel and tax.
Drivers can take advantage of further savings by switching to the cheapest cover available. On average, the cheapest annual premium for electric cars was £478 in the first quarter of 2021, representing a significant saving over petrol and diesel cars. Depending on their driving history and experience, EV drivers could save up to £133 by switching to a cheaper policy.