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Curious how much you’ll really spend on electric car insurance? You’re in the right place. In this guide, you’ll learn;
Insurance Premium Tax (IPT) is a tax in the UK applied to most general insurance policies. The standard rate is 12%. When you see a car insurance quote, a portion of the cost you see is IPT added to the base premium.
Because insurance for electric vehicles (EVs) is typically more expensive (due to batteries, parts, and occasional specialised repairs), the IPT you pay is also higher, making it a heavier cost compared to what you pay on petrol or diesel car policies.
For example, a base premium of £500 would cost you £560 once you add 12% IPT.
Which means;
ElectricCarGuide average
~ £654/year
Often cited as the go-to average EV insurance figure
CarPlus figure
~ £654 for popular EVs
Aligns with ElectricCarGuide number
EVPowered average
~ £724
Some models push averages upward
Quote ranges (cheap → expensive)
£400 up to £1,000+
Very dependent on driver, location, model, risk profile
Premium inflation/repair cost trends
+25% on repair costs vs ICE cars
EV parts, labour, and complexity raise average claims cost
• In many cases, electric car insurance premiums are higher due to the risks associated with batteries and repairsii
• Some insurers are beginning to offer more competitive EV-specific policies, which may narrow the gap over time
• As insurers collect more EV claims data, pricing models should become more accurate (and less conservative)
Because so many variables influence your quote:
• Driver profile (age, claims history, convictions)
• Location/postcode risk
• Annual mileage
• Model and trim (battery size, power, value)
• Repair network/parts availability
• Home charging setup /cable and charger security
• Breakdown / stranded support to nearest charger
• Excess, discounts, telematics/usage policies
So, while averages are useful benchmarks, your individual quote may differ significantly.
Feature / Aspect
Difference for EVs
What to check / tip
Battery coverage
Must ensure battery damage / failure is explicitly covered
Don’t assume battery is included — ask your insurer
Charging gear and cables
Portable cables or home chargers may be stolen / damaged
Add or confirm cover for charging kit
Breakdown/rescue
“Out of battery” is a new kind of breakdown
Choose cover that includes mobile recharging / towing to a charger
Repair network and qualified garages
Fewer EV-qualified repairers in many areas
Use insurers with EV repair networks
Telematics / usage policies
More relevant for low-mileage EV drivers
Use a usage-based policy if available
Performance / motor / power versions
High-power / sporty EVs cost more
Choose moderate trim levels if insurance cost is a concern
Modifications / customisations
Modding an EV adds extra risk
Disclose modifications – ensure custom car insurance is available
This is a rough guide, as mentioned above; there are a lot of personal circumstances that go into it. But, as a starter for ten:
If IPT stays at 12%, premiums will include that uplift. If IPT is cut or removed, you could see a 10-12% relative drop (so a £750 premium might drop to ~£660).
In 2026, many EV quotes may cluster more closely with petrol / diesel rates, especially for standard trim models.
1. Shop around every year – EV insurance products are changing fast, and new providers enter the market every year. Comparing quotes each renewal can uncover big savings, especially if you switch to an insurer specialising in electric vehicles.
2. Use telematics or usage-based policies – If you drive fewer miles than average or mostly stick to local trips, a “pay-as-you-drive” or black box policy could significantly cut your premium. These reward careful driving and low mileage, which suits many EV owners perfectly.
3. Secure parking and charging setup – Where you keep your car overnight affects your quote. Parking in a garage or driveway reduces the risk of theft, while protecting your home charger from damage or tampering can further lower costs.
4. Select moderate trims and battery sizes – Performance or long-range models cost more to repair, so choosing a mid-range version can bring your premium down. Insurers tend to favour cars that are cheaper to fix and have widely available parts.
5. Bundle your policies – If your insurer offers both home and car cover, ask about multi-policy discounts. Pairing your EV and household insurance can simplify admin and trim a small percentage off your total annual cost.
6. Be realistic with mileage estimates – Overestimating your annual mileage makes insurers assume higher risk. If you mostly use your EV for commuting or weekend trips, lowering your declared mileage can shave pounds off your quote.
7. Avoid unnecessary extras – Add-ons like courtesy car cover, windscreen protection, or legal expenses may sound useful, but can inflate premiums quickly. Only include extras you genuinely need for peace of mind.
8. Check your insurer’s EV repair network – Using a provider with access to approved EV repair centres can help control costs after an accident. These garages are trained in high-voltage systems, meaning faster repairs and less downtime for your car.
9. Maintain a clean driving record – Every claim, conviction, or speeding ticket impacts your premium. Building up a no-claims discount is one of the simplest ways to reduce your annual premiums.
10. Disclose modifications and upgrades – If you’ve made any changes to your car’s software, charging setup, or styling, be upfront. Using custom car insurance ensures that everything is protected and avoids the risk of a void policy if you ever need to make a claim.
In 2025, the average electric car insurance policy in the UK costs around £650 per year, although quotes can range from £400 to over £1,000, depending on the driving profile, location, and vehicle type. The 12% Insurance Premium Tax adds a noticeable extra cost, meaning that removing it could instantly make EV ownership more affordable for thousands of drivers. Insuring an electric car also differs from petrol or diesel vehicles, with added considerations such as battery protection, charging equipment cover, and specialist repair networks.
Beyond standard policies, drivers can explore niche options like green car insurance, cosmetic car insurance, and custom car insurance, each designed for specific needs or preferences. For those seeking the best electric car insurance, the goal should be comprehensive, EV-focused cover that balances value with peace of mind.
As the market matures, repair costs fall, and insurers gain more EV data, premiums are expected to stabilise and move closer to traditional car insurance levels by 2026 — making the switch to electric even more appealing.
What is the cheapest electric car insurance?
The cheapest option depends on your profile, model, and risk. Some quotes may start at around £400/year, but these often come with limited coverage or high excesses. Always compare quotes and check what’s excluded.
Does cosmetic car insurance exist for EVs?
Yes – some policies include or allow add-ons for cosmetic damage (scratches, dents). However, with EVs, cosmetic damage can often interact with sensors or wiring, so insurers may restrict coverage unless specifically stated.
What is green car insurance?
A niche policy variant targeted at environmentally conscious drivers. It may include eco-friendly perks like carbon offsets or safe-driving discounts.
Can I insure a custom / modified EV?
Yes, with custom car insurance. You must disclose mods (battery, software, body kits) and ensure they’re covered.
What is the best electric car insurance?
The “best” is the one that balances cost, coverage (battery, charger, breakdown), and customer service. Always compare, read reviews, and check EV experience.
References:
1) https://www.gov.uk/government/publications/rates-and-allowances-insurance-premium-tax/insurance-premium-tax-rates
2) https://www.aviva.co.uk/insurance/motor/electric-car-insurance/knowledge-centre/electric-car-myths-busted/
3) https://www.moneysupermarket.com/car-insurance/how-does-black-box-insurance-work/
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