Insurance is one of the running costs that concerns potential EV buyers. Are electric cars really more expensive to insure? Here's what the data shows.
The Quick Answer
On average, EVs cost 15–25% more to insure than equivalent petrol cars.
But this varies enormously by:
Some EVs are cheaper to insure than their petrol equivalents. Others are significantly more expensive.
Why EVs Can Cost More to Insure
Reason 1: Higher Purchase Price
Insurance premiums are partly based on vehicle value:
Example:
| Model | Price | Insurance Group |
|---|---|---|
| Vauxhall Corsa (petrol) | £20,000 | 10–15 |
| Vauxhall Corsa Electric | £32,000 | 21–25 |
Reason 2: Repair Costs
EV repairs can be more expensive:
Battery concerns:
Reason 3: Newer Technology
Insurance risk is partly based on claims history:
Reason 4: Performance
Many EVs have rapid acceleration:
Why EVs Can Be Cheaper to Insure
Reason 1: Lower Theft Rates
EVs are stolen less often than equivalent petrol cars:
Reason 2: Safety Features
Modern EVs typically have advanced safety:
Reason 3: Driver Demographics
Statistically, EV drivers:
Insurers may factor this into pricing.
Reason 4: Lower Fire Risk
Despite headlines, EVs catch fire less than petrol cars:
Insurance Groups by Model
Popular EVs and Their Groups
| Model | Insurance Group | Comparable Petrol |
|---|---|---|
| MG4 Standard | 19 | Comparable: Golf (13–21) |
| Nissan Leaf | 16–25 | Comparable: Qashqai (13–20) |
| Vauxhall Corsa Electric | 21–25 | Corsa petrol: 10–15 |
| VW ID.3 | 22–26 | Golf: 13–21 |
| Tesla Model 3 | 48–50 | BMW 3 Series: 30–42 |
| Hyundai Ioniq 5 | 33–42 | Tucson: 18–28 |
| MG ZS EV | 18–22 | MG ZS petrol: 12–15 |
Lower Insurance EVs
| Model | Insurance Group | Notes |
|---|---|---|
| MG4 Standard | 19 | One of the lowest |
| Nissan Leaf (40kWh) | 16 | Long-established, cheap parts |
| MG ZS EV | 18 | Budget-friendly all round |
| BYD Dolphin | 20–23 | Good value |
Higher Insurance EVs
| Model | Insurance Group | Notes |
|---|---|---|
| Tesla Model S Plaid | 50 | Extreme performance |
| BMW iX M60 | 50 | High value, high performance |
| Mercedes EQS | 50 | Luxury + high value |
| Porsche Taycan | 49–50 | Performance car |
How Much More Will I Pay?
Average Premium Comparison
| Driver Profile | Petrol Equivalent | EV | Difference |
|---|---|---|---|
| 40-year-old, experienced | £450 | £520–580 | +15–30% |
| 30-year-old, 5 years NCB | £550 | £650–750 | +18–35% |
| 25-year-old, 2 years NCB | £900 | £1,100–1,400 | +22–55% |
Note: These are illustrative. Your actual quotes will vary based on many factors.
Real Quote Examples (2026)
Driver: 45 years old, 9 years NCB, suburban, low mileage
| Car | Annual Premium |
|---|---|
| VW Golf 1.5 TSI | £380 |
| VW ID.3 Pro | £450 |
| Tesla Model 3 | £580 |
Driver: 28 years old, 4 years NCB, urban, moderate mileage
| Car | Annual Premium |
|---|---|
| Vauxhall Corsa 1.2 | £520 |
| Vauxhall Corsa Electric | £680 |
| MG4 | £620 |
How to Reduce EV Insurance Costs
1. Shop Around Extensively
EV insurance pricing varies more than petrol cars between insurers:
EV-friendly insurers to try:
2. Consider Pay-Per-Mile Insurance
If you drive fewer miles (common with second cars):
3. Increase Voluntary Excess
Raising your voluntary excess reduces premiums:
Be sure you can afford the excess if you claim.
4. Park Securely
EVs in garages or driveways get better rates:
5. Dashcam Discount
Many insurers offer dashcam discounts:
6. Advanced Driver Courses
7. Telematics / Black Box Insurance
For younger drivers especially:
The Home Charger Question
Does Having a Home Charger Affect Insurance?
Home insurance: Yes, you should tell your insurer (see our article on home insurance and EV chargers).
Car insurance: Generally no impact, but mention it when getting quotes.
What If My EV Is Written Off?
Battery Damage Write-Offs
One concern with EVs is being written off for apparently minor damage:
Reality: This is becoming less common as:
GAP Insurance
Particularly relevant for EVs:
Cost: £100–300 for 3 years
Worth it for: Finance/PCP agreements, high-value EVs
Future Trends
Insurance Costs Are Likely to Fall
| Factor | Impact |
|---|---|
| More EVs on roads | More data, better pricing |
| More repairers trained | Lower repair costs |
| Better parts availability | Shorter repairs, lower costs |
| Standardised battery designs | Easier repairs |
| Reduced fire concerns | Lower risk premiums |
Prediction: The EV insurance premium gap will narrow over the next 3–5 years.
Summary
| Factor | Impact on EV Insurance |
|---|---|
| Purchase price | Higher = higher premium |
| Repair costs | Currently higher, improving |
| Theft risk | Lower for EVs |
| Safety features | Lower premiums |
| Performance | Higher for fast EVs |
| Data/history | Improving as more EVs on road |
The Bottom Line
EVs typically cost more to insure, but:
When budgeting for an EV:
The insurance premium difference (£100–300/year typically) is usually dwarfed by fuel savings (£500–1,500/year). For most people, EVs remain cheaper to run overall despite higher insurance.