How much does electric car insurance cost on average?
Key figures for 2026:
- Average annual EV insurance premium: £707 (ABI data, MoneySuperMarket Electric Car Insurance Index 2026)
- Average annual petrol car premium: £558
- Average gap: approximately £149 per year
- Range by model: from around £400 for smaller, more affordable EVs to over £1,000 for premium models
- The gap has narrowed from approximately 30% above petrol in 2023 to under 10% by Q4 2025 — figures vary; verify current data
These are averages and your individual premium will vary significantly based on your age, location, driving history, and the specific model you insure. Use a comparison platform to get an accurate quote for your circumstances.
Why is electric car insurance more expensive?
Three structural factors keep EV premiums above their petrol equivalents, even as the gap closes.
Battery replacement cost
EV battery packs are the single most expensive component of the vehicle, and replacement costs range from around £5,000 to over £20,000 depending on size and model. After an accident, insurers often write off an EV rather than repair it because the battery is expensive to assess and replace. This increases the likelihood of a total loss claim, which pushes premiums up.
Specialist repair and parts availability
Not every garage can safely work on a high-voltage electric drivetrain. Technicians need specific EV qualifications, and the number of fully accredited EV repair facilities is growing but still below what the petrol equivalent fleet enjoys. Thinner repair supply chains for newer models add further cost and delay, which feeds through into premiums.
Higher vehicle values
Most electric cars cost more to buy than their petrol equivalents. Since insurance premiums are partially based on the cost of replacing the vehicle, higher purchase prices translate directly into higher premiums.
Is the gap closing?
Yes, meaningfully. The EV insurance premium gap stood at around 30% above petrol car premiums in 2023 and had narrowed to under 10% by the fourth quarter of 2025. Two forces are driving this. First, specialist EV insurers are entering the market, pricing risk based on actual claims data rather than inflated assumptions. Second, mainstream comparison platforms including Confused.com and GoCompare now carry growing panels of EV-specific policies, increasing competitive pressure on premiums.
The trend is expected to continue as more repair technicians qualify, parts availability improves, and insurers accumulate larger datasets of EV claims.
Which electric cars are cheapest to insure?
Insurance group is the most important model-level factor, and smaller, more affordable EVs sit in lower groups. A few practical observations:
- Smaller, lower-priced EVs — such as the MG4, Nissan Leaf, and Renault Zoe — attract significantly lower premiums than large or premium models
- Premium EVs, including certain Mercedes, Audi, and BMW models, attract the highest premiums due to repair costs and parts pricing
- Tesla models typically sit in higher insurance groups due to repair costs and parts sourcing, often attracting above-average premiums
- Models from established manufacturers with mature parts supply chains tend to be cheaper to insure than those from newer entrants
The most important step you can take before buying an EV is to check the insurance group of the specific model and trim you are considering — not just the headline premium quote for a different variant.
5 ways to reduce your electric car insurance premium
- Use a specialist EV insurer. A growing number of insurers now underwrite EV risk with pricing models built around actual EV claims data. They tend to offer more accurate premiums for EVs rather than applying a blanket surcharge on petrol car rates. Run a comparison on Confused.com or MoneySuperMarket filtering specifically for EV policies.
- Fit a dashcam. A dashcam provides evidence in the event of a dispute over fault, which reduces the chance of an at-fault claim on your record. Many insurers offer a discount of 5 to 15% for dashcam-equipped vehicles.
- Increase your voluntary excess. Accepting a higher voluntary excess reduces your premium. At EV insurance price levels, even a modest excess increase of £200 to £300 can translate into a meaningful annual saving.
- Park securely. EV charging cable theft has emerged as a growing claim category. Storing your charging cable out of sight and parking in a secure location reduces the risk profile your insurer prices against.
- Consider a telematics policy. Electric cars lend themselves well to usage-based insurance. The car's own data systems already track driving behaviour, and telematics insurers can access this with your consent to price your premium on how you actually drive.
Electric car insurance vs petrol: the full picture
Insurance is one line item in the EV running cost equation. Even at £149 more per year than a petrol equivalent, it is more than offset by fuel savings of £700 or more per year for home-charger owners at typical mileages. When you factor in lower servicing costs and broadly equal road tax, the total annual running cost for a home-charger EV owner is still typically £500 to £1,100 lower than a comparable petrol car.
For how insurance fits into the total picture, see our article on electric car running costs vs petrol.
Insurance is just one part of the equation. For a complete breakdown of electric car running costs including charging, servicing, and road tax, visit our main cost guide.
Key takeaways
- The average EV insurance premium in 2026 is £707, compared to £558 for a petrol car — a gap of £149 per year.
- The premium gap has narrowed from 30% above petrol in 2023 to under 10% in late 2025 — figures vary; verify current data.
- Higher costs are driven by battery replacement values (£5,000 to £20,000+), specialist repair costs, and higher vehicle purchase prices.
- Smaller, more affordable EVs attract significantly lower premiums than premium models.
- Shopping with specialist EV insurers and fitting a dashcam are among the most effective ways to reduce premiums.
Frequently asked questions
Is electric car insurance more expensive than petrol?
Yes, on average by around £149 per year in 2026, according to ABI data reported in the MoneySuperMarket Electric Car Insurance Index. The gap has narrowed significantly from around 30% above petrol in 2023 to under 10% by late 2025, and the trend is towards further convergence — figures vary; verify current data.
How much does it cost to insure a Tesla in the UK?
Tesla models typically attract premiums above the £707 EV average due to repair costs and parts availability. Expect to pay above average, often in excess of £1,000 depending on the model, your age, and location. Use a comparison site for an accurate quote specific to your circumstances.
Why is electric car insurance so expensive?
Three main reasons: battery replacement costs of £5,000 to over £20,000, a relative shortage of EV-qualified repair technicians keeping labour and repair costs elevated, and the higher purchase values of most electric cars compared to petrol equivalents — all of which increase the cost of settling a claim.
Does the type of electric car affect insurance cost?
Yes, significantly. Insurance groups are assigned by model and trim. Smaller, more affordable EVs such as the MG4 or Nissan Leaf sit in lower insurance groups and cost considerably less to insure than premium or large models. Always check the insurance group of the specific model before committing to a purchase.
Will electric car insurance get cheaper?
The direction is clearly towards cheaper. The gap to petrol has already closed from 30% to under 10% in the space of two years. More specialist EV insurers are entering the market, more technicians are gaining EV qualifications, and insurers have more claims data to price against. Continued narrowing of the gap is the reasonable expectation — figures vary; verify current data.