So, you're thinking about getting an electric vehicle (EV) for your next vehicle. Good on you; Mother Nature is proud.
Although EVs often save money in running costs, one thing that is often overlooked is insurance.
In this blog, leasing experts Nationwide Vehicle Contracts break down the nuances of electric car insurance and provide all the information you need to make an informed decision.
We discuss:
Electric car insurance is exactly the same as traditional car insurance and is a legal requirement to drive on UK roads.
It provides financial protection against theft, accidents, and other incidents. When leasing an electric car, you must have full comprehensive coverage of your vehicle for the duration of your lease contract.
For more information on insurance, check out our guide, Insuring Your Leased Vehicle.
Like always, insurance prices vary depending on the vehicle in question, but generally, electric vehicles are a bit more expensive than traditional cars.
This is because EVs are equipped with advanced technology and specialist parts, which can be more expensive to repair than a traditional car.
For example, if an EV's battery is damaged in a crash, it can massively increase repair costs as it's a specialist (and relatively rare) job. This is taken into account when determining the price.
As EVs become more and more popular, especially after the 2030 ICE ban, insurance prices will gradually decrease due to expanding knowledge and the increase in parts.
As already mentioned, one of the reasons that electric car insurance is more expensive than normal car insurance is because it has unique coverage needs. The following might be included in your coverage or as an add-on:
- Battery coverage - Given the high cost of batteries, some insurance policies offer specific coverage for battery damage or degradation. Battery coverage varies depending on the provider, so double-check before committing.
- Charging equipment - If you have an EV home charging station, ensure it is covered either under your home insurance or as an add-on to your car insurance.
- Recovery - If your battery runs out while you're on the road (shocker), your car will need to be towed to the nearest EV charger.
Electric car batteries are an impressive piece of kit, but they can cost thousands of pounds to replace. It's worth checking and double-checking when taking out electric car insurance that battery failure is covered.
It will vary depending on the provider, but most should pay out if the battery is stolen or damaged, but sometimes won't pay out if it fails.
Remember that electric car batteries are protected under warranty, which should offer some piece of mind.
Hybrid cars combine a traditional engine with an electric motor and battery, presenting insurance providers with a different set of considerations.
Insurance for hybrids can be a middle ground as they have both powertrains, but if you take out a fully comprehensive policy (required on a lease vehicle), you should be fine.
While electric car insurance can be pricey, there are ways to potentially lower your premiums:
- Shop around - Don't settle for the first deal you find. Compare quotes from multiple insurance providers and do a bit of haggling if needed!
- Park in a secure place - At night, park your car in a secure location such as a gated car park or a garage.
- Lower your mileage - The less you drive, the less likely you'll be in an accident. Therefore, you'll have a better chance of getting a cheaper premium.
- Build up no claims - If you drive carefully, you'll build up a good no-claims discount, which will make your insurance cheaper.
Leasing an electric car is undoubtedly an exciting time, but don't forget to consider insurance. Electric car insurance has its unique aspects and understanding these can help you make the right decision and potentially save money.
By considering higher insurance premiums and unique coverage needs such as the battery, you can navigate electric car insurance easily.
If you're considering leasing an electric car, get in touch with Nationwide Vehicle Contracts. One of the UK's largest leasing brokers, we offer a range of electric car leasing deals to suit your every need.
For more information, check out our electric car leasing guides or call us on 0345 811 9595.
