Car insurance is one of the inescapable costs of motoring. It doesn’t matter if you drive a supermini or a supercar, you will have to fork out for annual cover. How much you pay depends on several factors, including the car’s insurance group.
The groups range from 1 to 50. In simple terms, the higher the group, the more you’ll pay for insurance. A lower insurance group means you will pay less, but the premium will also be determined by other factors, such as your age, occupation and postcode.
The question is, are EVs more expensive to insure than petrol or diesel vehicles? The bad news is, yes, the latest data shows that electric cars do cost more to insure. But not by much…
EV insurance groups
Take the Kia Niro (pictured above). In hybrid and plug-in hybrid guise, the Niro falls into groups 20 to 24, which is par for the course for a family SUV. Opt for the Niro EV and you’re looking at groups 28-29. Not a massive jump, but it will add a few quid to your annual premium.
It’s a similar story with the Hyundai Kona. The hybrid versions range from groups 16 to 18, while the Kona Electric is in groups 25-33.
Meanwhile, the fastest and most expensive version of the Tesla Model Y slots into group 50 – the highest of the lot. This put it on a par with the supercars we mentioned. In fairness, though, it does offer the acceleration to match.
EV insurance costs
Insurance groups are only part of the story. According to price comparison website Compare The Market, the average electric car insurance premium increased by £139 between 2023 and 2024. The situation is even worse for drivers of petrol and diesel cars, who have seen an average annual increase of £157.
Looking at the overall costs of running a car, Compare The Market says electric car owners have seen a £16 drop between 2023 and 2024. This compares with a £152 increase for petrol and diesel cars. Free VED (road tax) and cheaper ‘fuel’ certainly help here.
Can you get specialised EV cover?
Some insurance companies offer cover designed for electric vehicles. For example, an Aviva policy features an out of charge recovery service, which includes transport to a working charging point if the battery cannot be recharged on site. The cover also includes having charging cables and a wallbox charger installed at home.
Other insurance companies offering specific electric car policies include Admiral, Direct Line, LV=, NFU Mutual and Esure. Alternatively, Pluginsure is a company dedicated to electric cars – but all providers should offer cover.
Why do EVs cost more to insure?
Electric cars are more expensive to insure because they contain complex battery technology that is costly to replace. They’re also costlier to repair, which only adds to the overall bill.
You can reduce your premium by restricting the amount of miles you cover in a year, increasing the voluntary excess and using a price comparison website. Never accept the annual renewal quote from your existing insurance provider.
Also, remember that more expensive insurance for electric cars can be offset by lower running costs. So it’s important to look at the bigger picture.
