Hybrid Car Insurance Explained: EV Costs, Cover & Providers

Are Hybrid and Electric Cars More Expensive to Insure?

Yes, most of the time, hybrid cars and electric vehicles cost more to insure than cars that use petrol or diesel. This is because hybrid cars and electric vehicles often have a higher price tag. The parts for them can be costly. They also have higher repair costs. Because of these things, insurance premiums for them are higher.

According to Compare the Market in April 2024, the average yearly insurance premium for an electric car in the UK was £687. A petrol car cost less with a yearly premium of £595.

Even though the prices for EVs can be higher, you should know that the cost can be different because of many things. The insurer you choose, the type of car you have, your own driving past, and where you live can all change what you pay. The good news is that now more people buy EVs and more repair shops know how to work with them. So, the prices are starting to get better and more alike for everyone.

Why Are Insurance Costs Higher for Hybrid and Electric Cars?

Expensive Parts and Repairs

EVs and hybrids use special parts like electric motors, lithium-ion batteries, and different safety features. These parts are very important in how you use the car every day. But if there is a crash, these things can be a lot more expensive to fix or replace than people think. For example, if you need a new battery, it can cost you more than £5000.

Fewer Approved Repair Shops

Not many garages have the right tools or know-how to work with high-voltage systems. This can mean that you end up with higher repair costs. You also could wait more time to get your car fixed.

Higher Price Tag

Many electric cars and hybrid cars often come with a higher price tag than normal gas cars. This means that, if there is theft or a car is written off, the replacement costs can be much higher for hybrid cars and electric cars.

Theft and Parts Scarcity

Even though most people do not steal electric cars as often as other cars, there are some models that people try to steal. The Toyota Prius is an example. Lately, there have been more thefts of this car because people want its parts. This can make your car insurance rate go up. Your car insurance could cost more if your car is easy to steal or at risk.

If you have one of these electric cars and you are worried about your insurance rate, you might want to find ways to keep your car safe. This will help you protect your things and help keep your car insurance rate from rising.

How Do Hybrid Cars Work and Why Does It Matter for Insurance?

A hybrid uses a gasoline engine and an electric motor. The car can work with just the gasoline engine, only the electric motor, or both at the same time. When it uses both, a hybrid can save you fuel. It also helps give off lower emissions.

From an insurance point of view:

• Repairs can need work on both systems. This can make things more difficult.
• It can be hard to get replacement parts or you might need someone special to fix them.
• If the battery systems or electronics get damaged, car insurance costs can go up a lot. This can make car insurance more costly.

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What About Fully Electric Vehicles?

Electric cars run only on battery power. This means you do not need things like oil changes or fixing the exhaust system. But, even with these cars, there are still some things that they can face.

• Higher rates are there because the parts cost more.
• There is not a lot of repair places out there.
• In some cases, you may wait longer to get repairs done.

EVs often get good attention for their safety features. This can help bring down the cost of collision coverage.

Average Car Insurance Premiums by Vehicle Type (UK 2024–2025)

Data: This information comes from looking at UK drivers between 30 to 50 years old who have not had any driving offenses.

How to Lower Your Car Insurance Premium as a Hybrid or EV Driver

Choose Models with Lower Risk Profiles

Insurers look at old claim records to decide how much their prices will be. Some of the least expensive vehicles to insure are:

• Nissan Leaf
• Toyota Yaris Hybrid
• Hyundai Ioniq
• MG4 EV

Install Safety and Tracking Features

Advanced alarms, immobilisers, and trackers can help lower the risk of theft. They may also make your insurance costs go down.

Park Securely

If you have a driveway or garage, your car insurance rate may go down. EV owners have another good thing about this. They can charge their EV at home, and this is more safe. You get a better insurance rate and extra safety for your EV when you keep it at your own place. This helps with car insurance and gives ev owners more peace of mind.

Compare Car Insurance Quotes

Always use a comparison site when you look for car insurance. This helps you see all the choices out there. The prices from car insurance companies can be very different. It is good to check what each car insurance policy gives you. Do not focus only on the price. It is important to see what you get with it.

Increase Voluntary Excess

Raising your excess can help lower the cost of your auto insurance. But make sure that you will be able to pay this amount if you need to make a claim.

Pay Annually

Monthly payments often have interest included. If you pay everything at one time, you could save some money.

What Does Hybrid and EV Insurance Typically Cover?

Standard Cover Options

• Third-party only (this is the lowest level of car insurance the law says you have to have)
• Third-party, fire and theft
• Comprehensive – this kind of cover will also protect your own car if it gets damaged, or if there is theft

Additional Cover to Consider

• Battery and charger damage (this is very important for electric cars)
• Accidental damage (this can happen, and it is more likely if you use rapid chargers)
• Breakdown assistance (a lot of electric cars now include help that is made just for them)
• Courtesy car (you will get a car to use while your own car is getting fixed)

You need to read car insurance policies carefully. This way, you know that the important risks are not missed. By looking at your car insurance often, you make sure you and your car be covered for what matters most.

Are There Exclusions EV and Hybrid Drivers Should Watch For?

Yes. EV owners should check for:

• Damage that happens because of home charger faults will not be covered.
• If the battery is too old or not in good shape, the claim may not be allowed.
• When the car has changes or uses parts from other makers, there could be special rules.

Some people who have a policy might think that the charger comes with home insurance. But this is not always true. It is good to talk to your insurance company to know for sure.

Do Electric Vehicles Qualify for Insurance Discounts?

Some insurance companies now give special discounts to people who have electric cars or for those green drivers. These discounts can be:

• You can get discounts for being an eco-driver if your car has lower emissions.
• You will earn rewards when you keep your mileage low.
• You will also get loyalty bonuses if you are a hybrid driver or if you have more than one green or hybrid policy.

Eligibility can be different in every place. So, it is important to look at what you get. Check with the providers to be sure.

Can EV and Hybrid Owners Still Get a Federal Tax Credit in the UK?

People in the UK do not call it a “federal tax credit,” but if you have an EV, you can still get other good things.

• Many of the models have zero road tax (VED).
• A plug-in grant is there for some electric vans and taxis.
• You do not have to pay charges for Clean Air Zones and ULEZ if you choose these options.

These rewards do not change your auto insurance quotes. But they can help with the higher costs of having an EV or a hybrid car.

Is It Worth Getting Telematics for a Hybrid or EV?

If you do not drive a lot or if you have a clean record when it comes to driving, you can save money on your car insurance premium with a telematics policy. A telematics policy will use a black box or a mobile app to keep track of the way you drive. These policies look at things like:

• How fast you go and how quickly you speed up
• The time of day that you drive
• The way you brake

They can be really good for younger hybrid drivers. People who move from traditional vehicles to a hybrid can see the benefits, too.

Can I Compare Car Insurance for EVs and Hybrids?

Yes, the best way to get real value is to compare car insurance from many providers. This will help you:

• Get real-time car insurance quotes.
• Look at how the excess, exclusions, and cover are not the same in each plan.
• Find out if there are features just for EV or if there are any green deals.

You need to check and compare car insurance every year. Do this step too when you get a new car. Now, some companies have cover made for electric and hybrid vehicles. This is a good way to get the best price and also find the right plan for your car, even if you use a hybrid.

Correct as of 28 July 2025

FAQs: About Hybrid & Electric Car Insurance