The cost of covering electric cars is reversed by £ 75 in three months: “Green” engines are cheaper to insure than petrol or diesel models – but the gap has narrowed
- Electric car insurance fell by an average of £ 75 in early 2021
- This means that they are cheaper to cover than gasoline or diesel vehicles
- With electric models, savings can be achieved, for example that no vehicle tax has to be paid
Electric car insurance costs have reversed by an average of £ 75 in the first three months of 2021, meaning vehicles are still cheaper to insure than petrol or diesel – but the gap has narrowed.
The average annual premium for EVs fell to £ 566 in the first quarter, from £ 641 in the last three months, according to Compare the Market.
Today, EVs are typically £ 45 cheaper to insure than gasoline and diesel alternatives, although some EVs are still more expensive to insure than others.
However, this gap has narrowed significantly compared to the last three months of 2020 as the cost of gasoline and diesel models has dropped more sharply.
According to new data, electric cars are on average still cheaper to insure than petrol or diesel models
Average electric car insurance costs have fluctuated over the past two years, peaking at £ 692 in December 2019 and falling to £ 550 in February 2021, before rising to £ 588 in March 2021 as travel restrictions began to lift.
The decline in insurance costs was partly due to the reduction in car insurance claims during national lockdowns, the comparison website said.
Travel restrictions also lowered insurance costs for non-electric vehicles, which fell by £ 101 over the same period.
Electric car insurance premiums tend to be lower, but road tax savings can be made as it does not have to be paid on non-carbon cars that cost less than £ 40,000.
Motorists can also receive a grant of £ 2,500 from the government for purchasing eligible electric vehicles priced below £ 35,000.
In addition, savings can be made on fuel costs, one of the largest expenditures for gasoline and diesel vehicle drivers.
On average, the cheapest annual premium for electric cars in the first few months of this year was £ 478, well below that for gasoline or diesel vehicles.
|Average gasoline and diesel car premium||Average premium for electric cars||Cheapest electric car premium|
|Q4 2020||£ 712||£ 641||£ 551|
|Q1 2021||£ 611||£ 566||£ 478|
|Source: Compare the Market|
The cheapest annual EV premium for the first few months of this year was £ 478
Therefore, motorists are advised to use price comparison services to see if they can make further savings by switching to the cheapest available deal.
Switching from the average premium for a regular vehicle to the cheapest premium for an electric car can save a driver £ 133 based on driving history and experience.
Electric cars have grown in popularity significantly over the past year. March data from the Society of Motor Manufacturers and Traders shows that sales of new battery-powered electric cars have increased 74.1 percent year-to-date – albeit from a low level.
These electric vehicles accounted for 7.5 percent of all new vehicle sales during this period, after 3.8 percent in the previous year.
Dan Hutson, Head of Car Insurance at Compare the Market, said, “Electric vehicles are becoming increasingly popular before the government plans to phase out new gasoline and diesel cars by 2030.
“The move to electric vehicles will be critical to tackling climate change, but the higher upfront cost of these cars compared to traditional models has often turned many drivers off.”
Some experts believe that electric cars can be a great option for those looking to go greener – and for those looking to save on insurance.
Hutson added, “When drivers are considering buying a new car, an electric vehicle could be an attractive option given the savings on insurance, fuel and taxes.
“In general, compared to traditional motors, electric cars have fewer complex moving parts that can be damaged, and batteries are adequately protected in the event of an accident, reducing the risk of replacement.
“Due to their limited range and relatively time-consuming charging, electric cars are generally less likely to be stolen and more likely to be found again when they are stolen.”
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