Yahoo Finance Electric car insurance in UK ‘is £45 less than for petrol or diesel vehicle’
The average cost of insuring an electric car in the UK is £45 less than the cost of covering a petrol or diesel car, according to research from the website Comparethemarket.com.
Analysis of annual premiums in the first three months of the year showed electric car drivers were charged an average of £566, while petrol and diesel drivers paid £611.
Travel restrictions during coronavirus lockdown periods over the past year have meant fewer claims on car policies, and led to cuts in premiums across the board.
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For electric car drivers this meant a £75 drop in the average premium in the first quarter of 2021, while other motorists saw a £101 drop.
Dan Hutson, the head of motor insurance, at Comparethemarket.com, said the difference was explained by a range of factors, including electric cars having fewer complex moving parts to be damaged in an accident.
He added: “Electric cars are typically less likely to be stolen and more likely to be recovered when they are, due to their limited range and because charging them is relatively time-consuming.”
Electric cars have been growing in popularity with drivers, and UK figures from the Society of Motor Manufacturers and Traders showed 22,000 were sold in March.
As well as lower premiums, purchasers of electric vehicles pay no vehicle excise duty and can get a plug-in grant of up to £2,500 from the government to put towards buying a car costing up to £35,000.
Hutson said: “Drivers making the switch to greener vehicles will be glad that our research shows electric cars could bring significant financial as well as environmental benefits over time.
“If drivers are considering buying a new car, then an electric vehicle could be an appealing option, considering the savings on insurance, fuel and tax.”
