Are electric cars expensive to insure?

One of the biggest benefits to owning an electric car is that they may cost less to run than their petrol counterparts, with lower average maintenance and repair costs.

Many people believe it’s more expensive to insure an electric car (EV). We asked Martin Smith, our Claims manager, if this is true. “The realistic answer will always be, ‘Who knows?’” he says. “There are many things that go into the modern, sophisticated pricing models used by insurance companies which look at a whole range of factors both relating to the driver and how they’re going to use the vehicle.”

These factors include driving experience, claims history, and – of course – the performance of the vehicle as well as the anticipated cost of repairs to that vehicle if it becomes involved in an accident or gets stolen.

“So, there are several factors, and they’re common regardless of what powers the vehicle. But with electric vehicles being a relatively new form of technology it’s certainly the case that they’re a bit unique,” says Martin. “They bring to repairs different requirements, which are unusual. You must have the right technology, so that used to be reflected in the price. But over time, as that technology becomes increasingly mainstream, the effects have been flattened out in the pricing models.”

Essentially, there’s nothing unique to EVs that makes them more expensive to insure – they’re like any other car. If it’s very expensive or has a lot of technology, those are things that can contribute to a higher premium.

When it comes to car insurance, one of the most important considerations is still the potential for accidents. “Potentially the biggest expense from a vehicle is when it’s involved in an accident and causes injury and damage, and that’s down to the person behind the wheel,” says Martin. “And it doesn’t matter if it’s powered by electric, diesel, petrol, hybrid or a rubber band – it still has the same potential to cause destruction and mayhem.”

Martin believes electric vehicles are simpler than we think. People may buy an EV and think it’s a unique product that requires specialist insurance, but that’s not the case. “Fundamentally it’s another vehicle. It’s got four wheels,” Martin says. “The only difference is what’s under the bonnet which makes it go forwards and backwards.”

What’s important is if your car is damaged or stolen, you want your insurance company to sort the problem out– either repair the car or pay the market value. That’s no different if the car is petrol, diesel, hybrid, or pure electric. And, on the flip side, if you cause an accident, you want your insurance to deal with any claims made against you.

“Every single existing motor product underwritten by Aviva will do all that, regardless of what’s under the bonnet,” says Martin. “An electric car owner may also be concerned if their insurer has the capability to repair an EV. And I can say, with absolute confidence: yes. We certainly do.”

Aviva’s large network of approved repairers includes technicians trained to work on electric and hybrid vehicles. They have all the correct equipment and capabilities to do repairs and, most importantly, they’ll work strictly in accordance with the approved repairer methods so your car will be restored to a similar condition it was in when it left the factory.

EVs do have some differences to other cars. For example, you have a charging cable, and it’s possible that when you plug in your car, someone might trip over the cable, get injured, and sue you. “An electric vehicle policy will probably cover you for a trip event,” says Martin. “But your standard motor policy will provide that cover too. You also might find that the cable is stolen. The cable isn't part of the vehicle, it’s an accessory. And all our policies cover accessories. So if something happens to the cable, it’s covered. Additionally, in many of our policies we are now including two extra benefits for our EV customers. If you run out of charge away from home, we’ll arrange for your car to be given a boost or be recovered to the nearest charge point. We’ll also provide cover for breakdown or failure of your home charger." ^{Footnote [1]}

Range anxiety, or the fear of running out of battery, is another common concern when people either consider or first buy an EV. “The first generation of electric vehicles, it’s fair to say, had limited realistic ranges – what was publicised as the predicted range and what you got in reality could be quite different, and this was impacted by your driving style, the traffic, the ambient temperatures,” Martin says.

However, modern EV's have much better ranges. As of the December 2024, there were 1,394,000 licensed zero emission vehicles on the road ^{Footnote [2]}. This suggests that people are realising going electric is a more viable option. With our new Running out of Charge benefit if the worst does happen you know we will be here to assist.

All things considered, electric cars are more reliable than petrol cars – they won’t break down as easily. They’ve got fewer moving parts, fluid, and don’t have as many features that need ongoing upkeep like oil filters, traditional clutches, and gearboxes. But you’ll still need to keep a close eye on things like in-car electrics, the battery, and tyres.

If you're still worried about running out of charge, fear not. Although there's an extensive network of charge points across the UK, if it does happen to you, your insurer is likely to step in to help, considering this a breakdown. Under our comprehensive car insurance cover, if your electric vehicle runs out of charge, an RAC mechanic will come out and either charge your battery to get you to a working charging point, or transport you, your vehicle and up to seven passengers to a working charging point or your home. Whichever is closer. ^{Footnote [1]} Different policies and providers may vary in their coverage, but many offer optional add-ons, such as additional assistance for running out of charge, similar to how they would assist if you ran out of fuel.