Electric car insurance

Following the government’s announcement that no new petrol or diesel vehicles will be allowed to be sold from 2030, the electric car market has seen rapid growth. Manufacturers are now putting more effort into improving the performance of electric cars, developing better batteries so they go longer without needing to be recharged.

As well as being better for the environment, some of the other benefits of green motoring are that it’s much cheaper, after the initial cost of buying the car. Electric cars aren’t as expensive to run as petrol and diesel cars. They have lower maintenance costs, as there are fewer components with an electric motor. What’s more, electric vehicles are exempt from the London Congestion Charge and Vehicle Excise Duty (VED).

If you’re considering buying an electric car, you may be wondering about insurance. ‘Is it the same as insuring a regular car?’, ‘What’s included on a policy?’ and ‘How expensive is electric car insurance?’ are just some of the questions you might be asking yourself.

Read on to find out the answers to all these questions and more.

What is electric car insurance?

It’s a legal requirement that all motorised vehicles driven on public roads need to have a minimum of third-party insurance – and that includes electric cars.

At the most basic level, electric car insurance protects third parties in the event of an accident. However, as with insurance for diesel and petrol cars, drivers have the option to add more cover if they wish.

There can be a lot to consider when it comes to buying insurance for your electric car, so we’ve explained everything in more detail below.

Do I need to insure my electric car with a specialist provider?

You don't need to take out specialist insurance for your electric car, because many (but not all) providers now offer electric car policies.

Although, if you do want to take out a dedicated electric vehicle insurance policy you can, with some specialist companies offering insurance for electric cars and other eco vehicles.

What’s included on an electric car insurance policy?

What you’re covered for is mostly up to you. Some of the things you might want to include on your policy are:

• Accidental damage, fire and theft for the car’s battery
• Accidental damage, fire and theft cover for charging cables, wall boxes and adaptors
• Legal cover, in case someone trips over your charging cable while you’re using it, you need to take legal action against another driver or you need to defend yourself against a claim made against you
• Hire car cover in case yours is off the road
• Personal accident cover to provide compensation if you’re killed or seriously injured while driving
• No claims discount protection

You may also want to consider adding breakdown cover to your electric car insurance policy. Breakdown cover usually includes things like:

• Roadside assistance – A mechanic will try to fix your car at the roadside. If they can't, they’ll tow it to a garage. If you run out of power, you’ll get recovery to the closest charge point
• Home start – A mechanic will come to your home and try to fix your car there. If not, they’ll tow it to the nearest garage.
• Onward travel – If you break down your travel plans can continue, as you’ll either be provided with a courtesy car or you’ll be covered for the cost of public transport.
• European recovery – You’ll be protected if something goes wrong with your electric car in other European countries.

What level of cover do I have with electric car insurance?

As with petrol and diesel car insurance, you can choose which level of cover to get.

Third-party only

The is the minimum level of insurance that’s required by law. It’s the most basic level of protection, only covering you for damage you cause to a third party or their property. Damages to your electric car or your own injuries won’t be covered.

Third-party, fire and theft

In addition to what you’re covered for with third party insurance, third party, fire and theft insurance protects you if your electric car is stolen or damaged by fire.

Fully comprehensive

The highest level of electric car insurance offers all the protection of third party, fire and theft, as well as giving compensation for you and your electric car. Depending on the policy, you could also be covered for things like legal expenses.

How expensive is electric car insurance?

There are many things that can affect the price of your premium, such as the type of electric car you have, your driving history and how long you’ve had your licence.

At A-Plan, we’ll go through all of this with you and then shop around for a quote on your behalf, so that you can be sure you’re getting the best deal.

There are some things you can do to get a better quote, though. These include:

• Mentioning any no claims discount you have, as the more years you’ve got, the less your premium is likely to be
• Increasing your voluntary excess so that you pay more upfront when making a claim
• Double-checking you’re not including any optional extras you don’t need
• Keeping your electric car locked in a garage at night

In the past, electric cars tended to be more expensive to insure than their petrol and diesel counterparts. This was largely because parts were costly and harder to get hold of, meaning repairs were more difficult. However, as electric cars and hybrids are becoming more mainstream and affordable, the price of insurance is going down.