As a growing number of Brits contemplate the shift to electric vehicles (EVs), we’ve delved into whether obtaining insurance for these vehicles is more economical compared to their petrol and diesel counterparts.
Understanding Eletric Car Inurance
Given the recent surges in fuel prices and the environmental impact of traditional fuels, electric cars are often considered a more conscientious choice for the planet. However, insuring electric vehicles (EVs) can sometimes be costlier than their combustion engine counterparts, in part due to the relative novelty of electric car models.
Key Factors Impacting EV Insurance
Factors contributing to potentially higher insurance costs include the newer nature of electric car models, resulting in less readily available spare parts and the necessity for specialist mechanics. While these prices are gradually decreasing, they may not yet align with those of petrol or diesel cars.
Tailored EV Insurance Policies
Certain car insurance policies cater specifically to EVs, encompassing coverage for charging cables, adaptors, wall boxes, and even considerations for the battery if leased separately from the vehicle. Additional features might include coverage for over-the-air (OTA) software updates, provision of electric or hybrid courtesy cars during repairs, and legal coverage for unforeseen incidents, such as someone tripping over a charging cable.
Choosing EV Insurance: Considerations for Road Users
While there aren’t fixed differences between electric and traditional car insurance, several factors merit consideration before opting for an EV. Breakdown cover for electric and hybrid cars is an essential consideration, as is the type of insurance policy that aligns with your needs – be it third party, third party, fire, and theft, or comprehensive coverage.
Mandatory Insurance Requirements: Understanding Policy Types
Insurance requirements are mandatory for all cars on UK roads, and there are various policy types offering minimum legal coverage to more extensive protection. Understanding how electric car insurance is calculated involves considering factors such as driving experience, age, occupation, location, storage conditions, usage patterns, car details, and driving history.
Transparent Information: Accuracy Matters in Insurance
It’s crucial to be truthful and precise when answering insurance-related questions. If premiums exceed your budget, adjusting the voluntary excess is an option, though this comes with the responsibility of paying the excess in the event of a claim.
Addressing the Range Anxiety: Breakdown Cover for EVs
While electric car insurance can cover breakdowns, the concern of running out of power remains relevant. Considering optional breakdown cover can provide reassurance by ensuring your EV is repaired or recovered promptly, and services like the RAC’s optional EV Boost recharge service can offer around 10 miles of charge in case of a breakdown, aiding in reaching the nearest charging point.
Do I need electric car insurance?
insurance is a legal requirement for driving any type of vehicle on UK roads. Driving without appropriate coverage is against the law.
There are three main types of insurance policies, each offering varying levels of coverage to meet legal requirements and provide additional protection:
- Third Party:
- This is the minimum legal requirement for car insurance, covering damage caused to other road users and property if you are at fault.
- Third Party, Fire, and Theft:
- This level of insurance goes beyond the basic requirement. It covers third parties as mentioned above and includes protection against fire damage to your own vehicle and theft.
- Comprehensive:
- The comprehensive option provides extensive coverage, encompassing third party, fire, and theft protection. Additionally, it covers any damage caused to your own vehicle in the event of an accident.
How is electric car insurance calculated?
Every car insurance policy adheres to a standard set of principles when determining the premium cost. While specifics may vary among providers, most consider a range of factors, including:
- Driving Experience: The duration you’ve been driving.
- Personal Details: Factors like your age, occupation, and residential location.
- Storage: Where your car is kept when not in use, such as a driveway or garage.
- Usage: The intended purpose of your car and the annual mileage.
- Vehicle Details: Make and model of the car, any modifications, and its value.
- Driving Record: Your history, including any previous claims.
Given the multitude of factors, it’s essential to answer questions honestly and accurately.
If you find the premium exceeding your budget, consider adjusting the voluntary excess. Keep in mind that you’ll be responsible for paying this excess in case of a claim.
What are the issues of insuring an electric car?
Repairing electric cars often involves costly specialized parts, requiring the expertise of trained mechanics for installation. Unfortunately, this factor can contribute to an increase in your insurance premium.
For electric car owners, securing the appropriate insurance and breakdown policy is crucial to ensure financial coverage in unforeseen circumstances.
The RAC stands out as the UK’s pioneer in breakdown assistance, introducing a groundbreaking mobile charging unit tailored for electric vehicle owners who find themselves without charge.
As the leading provider of breakdown cover for electric vehicles, our All-Wheels-Up recovery system enables our patrols to safely assist electric cars without the need for a flatbed.
What insurance group will my electric car be in?
All vehicles are assigned to specific groups to assist insurance providers in determining the premiums they charge. These groups are established by the Association of British Insurers and managed by Thatcham Research.
Cars are categorised into groups ranging from 1 to 50, with lower groups translating to lower insurance costs. The assignment of each group takes into account factors such as the car’s make and model, power, and risk factors like the potential for theft. Interestingly, being electric is not necessarily a decisive factor.
Thatcham Research conducts assessments on:
- New Car Values:
- The higher the purchase cost of your car, the more attractive it may be to criminals.
- Repair Costs for Damaged Parts:
- Lower costs for car parts generally result in reduced insurance premiums. For electric cars, being relatively new, parts may be more expensive to repair or replace, especially considering the specialized nature of EV components. Some suppliers offer battery leasing schemes to manage the expense of battery replacement.
- Car Performance:
- Acceleration, power, and overall performance contribute to the assessment of each car’s insurance group.
- Safety and Security:
- Features enhancing security and safety play a role in assigning an insurance group. Cars equipped with alarms or autonomous emergency braking systems, for instance, may be placed in lower insurance categories, potentially reducing premiums.