In 2025, battery-electric cars accounted for more than 23% of new car sales, and that number is still growing in 2026. This fast change is affecting insurance, often in ways that surprise EV owners when they get their first renewal quote.
If you’re thinking about buying an electric car or have just bought one, it’s important to know how insurance works for EVs. Insurance for electric vehicles is not just regular car insurance. Because EVs are different, they come with unique risks, higher repair costs, and special coverage needs.
Why EV Insurance Costs More
There are a few reasons why insuring an electric vehicle usually costs more than insuring a petrol or diesel car.
Battery Replacement Costs: The biggest difference in cost between EV and regular car insurance is the battery. Replacing an EV battery pack can cost anywhere from £5,000 to £15,000, depending on the car and battery size. In a petrol or diesel car, a typical collision might mean a £2,000 repair, but in an EV, even small damage to the battery area could mean replacing the whole battery.
Insurers set policy prices based on how much it would cost to replace parts. For example, replacing a battery in an EV might cost £10,000, while replacing a gearbox in a regular car could be £3,000. This higher risk leads to higher insurance premiums for EVs.
Specialist Repair Requirements: Not all garages can fix electric vehicles. Their high-voltage systems, battery computers, and special parts need technicians who are specially trained for EVs. This expert work costs more, and because there aren’t many trained technicians, repairs can take longer and cost more.
Limited Claims Data: Even though EV sales are rising fast, insurers don’t have as much past data on claims for electric cars as they do for petrol or diesel cars. Because of this uncertainty, they often charge higher premiums to cover possible unknown risks.
Charging Infrastructure Liability: Some EV insurance policies also cover home charging equipment, which can add to the cost. Damage to charging stations during storms or accidents brings new types of risks that regular car insurance doesn’t cover.
Unique EV Insurance Considerations
Besides higher costs, EV owners have to make some insurance choices that are different from those for petrol or diesel cars.
Charging Equipment Coverage: If you have a home charging point, check if it’s included in your home insurance or if you need extra coverage. Standard policies don’t always cover damage to charging equipment.
Battery Degradation: Over time, EV batteries slowly lose their ability to hold a charge. Some insurance policies now offer coverage for battery degradation, replacing batteries that drop below a certain capacity. It’s important to know if your policy includes this protection.
Stranding Coverage: If your EV runs out of battery somewhere unexpected, some EV insurance policies include ‘stranding’ coverage. This pays for emergency towing to the nearest charging point. Regular breakdown cover may not treat electric and petrol cars differently.
Software Updates: Many new EVs get software updates automatically, which can change how the car works. Some insurers now require you to keep your car’s software up to date to keep your full coverage. This means you need to make sure your car’s computer is always current.
Shopping for EV Insurance
Getting a good deal on EV insurance often means using different strategies than you would for regular car insurance.
- Specialist EV Insurers: Some insurers now offer products made just for EVs and understand their unique risks. These specialists can often give better value to EV owners than general policies, even if the initial premium looks higher.
- Charging Location Details: Insurers now often ask where and how you charge your EV. Charging at home is usually seen as less risky than parking on the street and using public chargers. Your charging habits can make a big difference to your premium.
- Annual Mileage Estimates: Many EV drivers guess too low on their yearly mileage or change how much they drive compared to petrol cars. It’s important to be accurate, because if you go over your stated limit, your claim could be rejected.
- Residual Value: The value of EVs is changing quickly as the market grows. Make sure your insurer’s valuation matches the current market. If they use old values, you might get less money if your car is written off.
The Cost Reality
EV insurance premiums are usually 10-20% higher than for similar petrol or diesel cars, but the exact amount depends on your car model, where you live, your driving record, and the coverage you choose. For example, insuring a £25,000 EV might cost £600-750 a year, while a similar petrol car could be £500-600.
However, you should also think about fuel savings. EV drivers usually spend 60-70% less on fuel than petrol car owners, so the higher insurance cost is often balanced out by much lower running costs.
Professional Guidance Helps
As more people buy EVs, getting professional insurance advice is more important than ever. You need to understand what coverage your EV needs, make sure you have enough battery replacement protection, and check that there are repair specialists for your car model.
At The Bateman Group, we help EV owners make sense of their insurance options. If you’re buying your first EV and want to know about insurance, or if you already own one and are looking for better coverage or lower premiums, our advice can help you get the right protection at a good price.
The EV market is growing fast, but many people aren’t aware of all the insurance details. By working with advisers who know about EV risks, you can avoid being underinsured or paying for coverage you don’t need.
