Insuring Your Electric Car

In the UK, car insurance is a must-have for anyone owning or driving a vehicle, including electric vehicles. At the very least, you must have third-party insurance, and this is true even if your car is always parked unless it has a Statutory Off Road Notification (SORN) indicating it's not in use on public roads. However, it's important to assess your needs and choose a coverage level that aligns with your lifestyle. Opting for a less expensive premium might end up being more expensive if it doesn't cover certain types of damage. This article will delve into the insurance options for electric vehicles, covering everything from essential protections to additional features that are good to have.

The range of insurance options for electric vehicles mirrors those available for traditional gasoline and diesel vehicles. The categorization of cars into insurance groups is a determinant of the premium cost, with group one vehicles enjoying the lowest rates and those in group 50 facing the highest insurance costs. Electric vehicles qualify for standard insurance types, including third-party, fire and theft, and comprehensive coverage. However, policies for electric cars often come with extras, such as specific protection for the battery and charging cables. It's crucial to review the details of an insurance policy to ensure it meets your requirements.

Insurance for electric vehicles can offer the following benefits, either included in the standard policy or as an add-on:

• Assistance to get you to the nearest charging station if your battery runs out. Since electric vehicles require professional towing in breakdown situations, this feature can help reduce potential costs.
• Protection for your electric vehicle's battery against failure, accidental damage, fire, and theft.
• Insurance for your charging equipment and accessories, such as cables, home charging units, and adapters, covering accidental damage, fire, and theft.
• Liability insurance for your electric car charger is useful if you're deemed liable for an accident caused by, for example, someone tripping over your charging cable and sustaining an injury.

It's important to thoroughly review the details of your policy to understand what's included and excluded, the deductible you'd be responsible for in the event of a claim, and how making a claim could impact your future premiums.

Typically, insuring an electric vehicle tends to be pricier than insuring a gasoline or diesel counterpart. Insurance quotes can vary widely among providers, so comparing offers is advisable to secure a policy that fits your budget. The higher insurance costs are often attributed to the elevated expense and specialization required for repairing or replacing electric car components.

Electric vehicles generally have a higher purchase price compared to gasoline or diesel cars, which translates into higher insurance premiums. However, as more affordable electric models become available, these costs could decrease.

A significant factor in the higher cost of electric car insurance is the inclusion of battery coverage, given the high expense associated with repairing or replacing batteries. Insurance that covers over-the-air software updates also contributes to higher premiums.

The need for specialized technicians for electric car repairs and the current scarcity of such professionals add to the costs. Additionally, the cost and availability of parts play a role in driving up insurance expenses. As electric vehicles grow in popularity and the market adjusts, the costs for cars and parts are expected to stabilize.

Insurance rates are influenced by various factors, including your driving history and risk profile. Despite the current high costs due to a limited number of insurers and less competitive pricing, the expectation is that insurance costs for electric vehicles will decrease as they become more widespread, fostering greater competition among insurers.

It's crucial to verify this aspect, as the cost of replacing an electric car battery can be substantial, often running into thousands. The extent of coverage for battery failures varies by insurance provider. Typically, insurance policies will cover theft, accidental damage, or damage caused by fire—this is particularly true for policies specifically tailored to electric vehicles. However, coverage might not extend to battery failure due to wear and tear, much like how standard policies do not usually cover the wear of brake pads or clutches.

It's advisable to carefully review the policy's terms and clarify any uncertainties with the insurance provider to avoid surprises. Additionally, it's worth noting that electric car batteries generally come with a manufacturer's warranty, often lasting a minimum of five years and frequently up to eight years, providing an extra layer of protection alongside your insurance.

To obtain an insurance quote for your electric car, ensure you have the following information ready:

• The vehicle's details, such as its make, model, and year of manufacture.
• Your personal information, including your name, age, and address, as well as any driving offences.
• The expected annual mileage and the car's primary use.
• A record of any insurance claims filed in the past five years.
• The type of insurance coverage you're seeking: comprehensive, fire and theft, or third-party only.

Insurance providers may also consider your electric vehicle's safety features and your commitment to its maintenance and care. Regular upkeep and enhanced safety measures could lead to reduced insurance costs. However, it's important to inquire about these potential discounts and review the insurance contract thoroughly to ensure you understand the terms and potential savings.

Many leading insurance companies now provide insurance for electric vehicles. Firms such as Aviva, Admiral, Direct Line, NFU Mutual, and LV have all started offering coverage for electric vehicles. Some have specialized policies for electric vehicles, while others integrate them into their conventional vehicle insurance offerings.

Electric vehicles have become a significant part of the automotive market only in recent years. Therefore, some insurance providers might not yet offer electric vehicle insurance, citing the lack of sufficient data to accurately assess risks and set premiums.

To find the best deal, it's advisable to get quotes from various insurance companies. It's also important to carefully examine the details of any insurance policy and discuss any questions specifically related to your electric vehicle with your insurer.

Keeping all documents related to the purchase, maintenance, and any modifications of your electric car is beneficial, especially when making an insurance claim.

With car insurance, the price of your policy will depend on a range of factors, including:

• The value of your car and the insurance category it falls into
• The extent of coverage you select
• Your age
• Your postcode
• Where you park your car overnight
• Your driving and claims history
• Your annual mileage

Insurance premiums are calculated based on the perceived risk associated with your driving behaviour. To potentially lower your insurance costs, you could consider reducing your yearly driving distance, installing a telematics device (black box) to track your driving habits, and opting for a higher voluntary excess. While a higher excess can decrease the initial cost of your insurance, it means you'll pay more in the event of a claim. It's important to balance these options with what you can afford.

Securing the right insurance for your electric vehicle (EV) in the UK is a crucial step that demands attention to detail. This article has aimed to guide EV owners through the complexities of insurance options, highlighting the importance of understanding coverage levels, the implications of policy costs, and the benefits of EV-specific features.

With the evolving electric vehicle market, insurance options are also adapting, promising more competitive rates and comprehensive coverages in the future. The key to finding the best policy for your EV lies in diligent research and a clear understanding of your needs. By being informed and proactive, you can ensure your electric car is adequately protected, potentially saving money while enjoying the peace of mind that comes with knowing you have the right coverage.

For more information, why not check out our Guide to Electric Car Insurance guide? We also produce a range of weekly blogs on various topics, which can be found in the blog section of our website.

Nationwide Vehicle Contracts are one of the UK's leading car leasing brokers and offers a range of leasing deals to suit every need. To find out more, check out our comprehensive car leasing guides or call one of our experts on 0345 811 9595.