Electric Car Insurance UK 2025 – Costs and Cover

Why is electric car insurance different from standard cover?

Electric car insurance, also called EV insurance, is for people who have electric cars or plug-in hybrid vehicles. It works in many of the same ways as normal car insurance. But the way companies see risk, price, and what they cover may not always be the same.

EVs often have a bigger price than diesel cars when you buy or fix them. The battery and special parts inside these cars are why the price is higher. Insurance providers see these bigger repair costs. The companies also notice it is hard to get spare parts for EVs. There are not many places that can fix them. So, the cost you pay for insurance is also more.

In 2025, most people in the UK will have to pay about £1,200 to £1,600 each year for car insurance if they own an electric vehicle. This is a bit more money than what most people pay each year to insure petrol or diesel cars, which is about £1,000 to £1,200.

Even with this, the full cost to run an electric car is still less. You save a lot on fuel and tax. As more people get an electric car, you will see that car insurance is now coming in cheaper and made only for electric cars.

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What does electric car insurance cover?

An electric car insurance policy gives you the same kind of protection as regular car insurance. But, it does more. The policy also helps if there are problems only an electric car can have. This means you get cover for the charging equipment, issues with the battery, and the chance of a fire because of electrical parts.

Typical EV insurance includes:

• Vehicle damage – You get help if your own car is damaged in an accident or if someone causes damage on purpose.
• Third-party cover – This protects you if you hurt someone or damage their car or things with your own car.
• Battery cover – The insurance pays to fix or replace the battery pack if it gets damaged or stops working after an accident.
• Charging cables and wall box – If someone steals or breaks your home charging gear, this covers the loss or damage.
• Accident recovery – A team will tow and recover electric vehicles, making sure to handle high-voltage batteries in a safe way.
• Breakdown cover – You can choose to add this if you want roadside help when your electric vehicle runs out of power or has trouble with the battery or wiring.
• Courtesy car – It gives you another car to use for a short time if your own car is being fixed.

What are the main levels of cover available for EV drivers?

Electric car insurance offers the same main types of cover as normal car insurance. But, if you own an electric car, you will have some more things to think about.

For most people who drive, comprehensive car insurance is the best choice. It gives more protection than other plans. This type of car insurance will cover you in crashes. It may also help with breakdown cover or battery replacement when you need it.

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Why are electric cars often more expensive to insure?

Electric vehicles usually have a higher cost for insurance. That is because they use expensive technology. When there is a problem, you need experts to repair them. These are the main reasons why:

• High battery replacement cost – A new battery for electric vehicles can be very pricey. You might pay between £4,000 and £12,000 depending on the brand and type.
• Limited repair network – There are not a lot of garages that work on high-voltage systems. This can make it cost more to get work done.
• Longer repair times – Electric vehicles may take extra time to fix. The parts are special, and there are not many workers with right skills. You could wait longer, and pay more if you need another car while yours gets fixed.
• Higher vehicle value – New electric vehicles usually have a bigger price tag. If you lose your car and need a payout from insurance, that amount will also be more.
• Inexperienced market data – A lot of insurers do not get much info from claims for electric vehicles. So, they may price their cover with care because they do not know all the risks yet.

But now, more people buy electric cars. A lot of people get no claims bonuses, too. Because of this, the insurance companies lower what you have to pay each month. They start to give better prices. They also offer good deals that help drivers.

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How does the type of car affect insurance premiums?

The cost you pay for electric car insurance depends on the type of car you have. It also depends on what insurance group your electric car is in. A small hatchback or city car will usually have lower car insurance costs. A fast electric car often has higher insurance costs compared to smaller cars.

Electric cars that have less power and smaller batteries cost less to insure. This is because they are cheaper to fix and repair costs are not so high. Your insurance will stay low for these cars. But, cars that go very fast and have bigger repair costs will cost more to insure.

Do electric cars get a no-claims bonus?

People with EVs get a claims bonus the same way as people with diesel cars or petrol cars. Each year, if you do not make a claim, you will get a discount from your insurance company on your next payment. If you do not make a claim for five years, you could save between 40% to 60% on your insurance cost compared to your first plan.

How does charging equipment affect your insurance?

Your insurance should cover your charging cable, wall box, and portable charger. The insurance needs to be ready if there is theft or any accidental damage. Make sure these things are clearly listed in your insurance papers.

Some insurance companies give you this cover as part of the plan. Others let you add it to your comprehensive cover. If you have a home charger, make sure a qualified electrician sets it up. You should also tell your insurer about it.

How can EV drivers lower their insurance premiums?

You can lower electric car insurance premiums in the same way as you reduce car insurance premiums for other cars. Try the steps people use for regular car insurance. This works well for electric car insurance too.

1. Choose your model carefully – Small EVs and hybrids will often be cheaper for you when it comes to car insurance.
2. Build your no-claims discount – Try not to make a lot of small claims. If you have a clean driving record, you could get better deals and bigger claims discount.
3. Increase voluntary excess – If you agree to pay a higher excess, your premium can get lower.
4. Park securely – When you park, put your car off the road, in a garage, or somewhere bright as this makes the risk lower.
5. Compare car insurance – Check several providers before you decide. It’s the best way for you to get lower ev insurance quotes.
6. Install telematics – A few car insurance companies are using black boxes for ev insurance. They can reward you for being safe and driving efficient.
7. Bundle cover – If you take breakdown cover or home insurance from the same place, you may get a multi-policy discount.

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What are the best car insurance options for electric vehicle drivers?

The best car insurance for your electric car depends on the way you drive. It also can be all about how far you go with it. It matters if you have, lease, or are still paying for your car. In 2025, people have several common choices to pick from for their electric car insurance.

• Comprehensive EV insurance – This is for people who use or have newer cars.
• Battery lease protection – This covers batteries you rent, not the car itself.
• Telematics EV insurance – This keeps track of the way you drive to reward safe and good driving.
• Green driving policies – This type of car insurance helps pay for carbon offsets and using clean energy.
• Hybrid car insurance – This is good for plug-in cars that use both electric and petrol power.

This list includes options for car insurance, EV insurance, and hybrid car plans.

These flexible policies help UK drivers in many ways. They make it more simple for people to manage the cost of driving, the range of their car, and the right protection. This is very important as the UK moves toward using only electric cars.

Which insurance companies offer affordable electric car insurance?

Many UK companies now offer electric car insurance. Some include special options for these cars in their regular plans. The price of car insurance can be different based on where you live and how you drive. A few insurers have good deals for electric car owners, and these deals often include:

• Big insurance companies set up their own plans for EV and hybrid cars.
• Some companies check electric cars only. They use data on how you drive to make their prices.
• A few groups will give you a bundle with a home charger and breakdown cover for your car.
• New brands that are digital give rewards to people who drive green and save energy.

You can find good rates if you check quotes from different insurance companies. A lot of people renew the one they have. But if you see what other companies can give, you may save some money.

Are hybrid and plug-in hybrid cars cheaper to insure?

Hybrid cars usually be cheaper to insure than electric cars. The reason is they have a smaller battery and a petrol engine that helps. Its parts make the repairs and getting back on the road easy. Plug-in hybrids, called PHEVs, will have insurance costs that are not the highest and not the lowest. Most of the time, a year of insurance for a PHEV will cost between £1,100 and £1,400.

You will spend less to use a hybrid car. The car needs less gas. It puts out fewer fumes into the air. You might save money on your taxes, too. It can also cost less to insure a hybrid car. Many people who drive hybrids are careful on the road. Insurers say these drivers do not take as many risks.

How does driving behaviour affect EV insurance?

The way you drive your car and your daily habits can affect how much you pay for insurance. This is true for normal cars and electric vehicles. If you are careful and drive slowly, you might not file a claim as often. So, there are companies that now give telematics insurance for electric vehicles.

Don’t press hard on the gas. Try not to stop fast. You should also avoid charging your car battery again and again. These things can use up the battery life. If you drive in a way that helps your battery last longer, you can also get savings with some behaviour-based car insurance plans.

Are electric vehicles more likely to be stolen?

EV theft rates are low when you look at them next to petrol and diesel cars. But there are still some top electric models that get targeted. This is sometimes because they have advanced keyless entry systems. The parts such as motors and batteries also have high value.

Insurers may ask you to use things like parking your car in the driveway, adding immobilisers, or putting in tracking systems. If you have the security features, it can help to make the risk lower. This can mean you pay less for the premium.

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What happens to electric car insurance after an accident?

If your EV is in an accident, you fix it and make a claim just like with any other car. Your insurance company will look at the damage. The company will decide to fix your car or say it cannot be fixed, so you cannot get it back. If the battery or powertrain is broken, it will take more time to fix. A specialist will need to work on these parts because they are different. High-voltage safety checks must be done too.

Many insurance companies give you a courtesy car to use while your own car gets repaired. Sometimes, if the battery in your car is leased, the company that owns it will replace it for you.

FAQs about electric car insurance