Are electric cars more expensive to insure than petrol cars?

If you’ve started looking at electric cars, you’ve probably noticed something odd. Running costs look lower, servicing looks simpler, but insurance quotes can come back higher than expected. 

The short answer is that electric cars are often more expensive to insure than petrol cars today. But that’s only part of the story. The gap isn’t consistent, it’s narrowing, and in some cases it disappears entirely depending on the car and the driver.

What matters is understanding why insurers price electric cars differently, and where that actually affects you.

How electric car insurance costs compare with petrol cars 

On paper, electric cars often land in higher insurance groups than their petrol or diesel equivalents. That usually means higher premiums, particularly for newer models with higher values and more advanced components. 

But comparing “electric vs petrol” in isolation is slightly misleading. A £40,000 electric SUV isn’t really competing with a £20,000 petrol hatchback from an insurance perspective. When you compare like-for-like cars, the difference is often smaller than people expect. 

Where there is still a gap, it’s usually tied to one thing: the cost and complexity of putting the car back on the road after a claim. 

Why electric cars can cost more to insure 

Insurance pricing isn’t about what a car costs to buy. Insurance premiums are based on many factors including repairability and security. Electric cars often include advanced driver safety and crash avoidance systems, which can help reduce the likelihood of accidents, but are costly to repair.

Battery value and repair costs 

The battery can be the most expensive part of an electric car. With a petrol car, a low-speed impact might mean replacing a panel or a component. With an electric car, that same impact can result in replacement of electronic components, recalibration of driver assistance, and battery inspection. If there’s any uncertainty about potential battery damage, insurers may take a cautious approach, which can increase the overall cost of the claim. 

This isn’t about batteries failing regularly. It’s about the consequences when they might be affected. 

Specialist repairs and approved garages 

Electric vehicles require trained technicians and specific equipment. That naturally limits where repairs can be carried out. 

Fewer repair centres means:

• higher labour costs
• longer wait times
• longer periods with a courtesy car 

All of that feeds into the total cost of a claim.

Vehicle value and write-off decisions 

Electric cars are often more expensive upfront, and that affects how insurers handle damage. 

When repair costs approach a certain percentage of the vehicle’s value, a car may be written off. Because EV components are expensive, that threshold can be reached more quickly, even after relatively moderate damage. 

Parts availability and repair timelines 

EV supply chains are improving, but parts availability can still be slower than for established petrol models, or newer manufacturers to the UK. 

Longer repair times don’t just inconvenience drivers. They increase costs for insurers, particularly if alternative transport is covered under the policy. 

Performance and technology 

Many electric cars are quick, even at entry level. Instant torque changes how the car behaves on the road, and that can influence risk modelling. 

Add in advanced sensors, driver assistance systems and integrated tech, and you’re dealing with a vehicle that is more complex, and often more expensive, to repair.

When electric cars may be cheaper to insure 

For all the reasons electric cars can cost more, there are equally valid scenarios where they don’t.

Safety and driver assistance 

Electric cars tend to come with strong safety credentials and modern driver assistance systems as standard. Over time, these features reduce both the frequency and severity of claims. 

As insurers build more data, that starts to work in the driver’s favour. 

Real-world usage patterns 

Electric cars are often used differently. Shorter journeys, predictable commuting patterns, and lower annual mileage are common. 

From an insurer’s perspective, that can mean lower exposure to risk, even if the vehicle itself is more expensive. 

A maturing insurance market 

A few years ago, insuring an electric car meant limited choice. That’s no longer the case. 

More insurers now understand electric cars properly, have access to better repair networks, and are pricing with real data rather than assumptions. As competition increases, premiums are becoming more consistent.

What actually drives the cost of electric car insurance

It’s tempting to treat this as a simple electric car vs petrol comparison, but insurance doesn’t work like that. The fuel type is just one input among many.

The biggest drivers are still familiar. The car itself, your driving profile, and how the vehicle is used day to day all play a role. Two drivers with the same electric car can see very different premiums based on those factors alone. 

What changes with electric cars is how certain elements are weighted. Repair cost, parts availability and vehicle value carry more influence than they might with a petrol equivalent.

Insurance costs compared with overall running costs 

Insurance tends to get disproportionate attention because it’s a visible, upfront cost. But it’s only one part of the equation. 

Electric cars are typically cheaper to run. Charging costs are lower than petrol or diesel, servicing is simpler, and there are fewer moving parts to maintain. Over time, those savings can outweigh a slightly higher insurance premium. 

That’s why many drivers still find electric cars make financial sense overall, even if the insurance quote looks higher at first glance. 

How electric car insurance is evolving

The direction of travel is clear. As electric cars become more common, the factors that may have previously pushed premiums up are easing. 

Repair networks are expanding, technicians are becoming more widely trained, and parts availability is improving. At the same time, insurers now have far more data on how electric cars perform in real-world conditions. 

That combination leads to more accurate pricing. Not inflated, not cautious, just reflective of actual risk. And that’s what ultimately brings premiums down.

How to bring down the cost of insuring an electric car 

If you’re looking to reduce your premium, the most effective approach isn’t to chase small tweaks. It’s to focus on the factors that insurers weight most heavily. 

The choice of vehicle is one of the biggest levers. Smaller, lower-powered electric cars generally sit in lower insurance groups and cost less to repair, which feeds directly into lower premiums. It’s an obvious point, but it often has more impact than anything else. 

Beyond that, it’s about how the risk around the car is presented. Where the car is kept overnight, annual mileage, and your claims history all matter just as much for an electric car as they do for a petrol one. Increasing your voluntary excess can reduce the premium, but it’s only worthwhile if you’re comfortable with the trade-off. 

What’s worth avoiding is the idea that there’s a single trick to make EV insurance cheap. There isn’t. It’s a combination of choices, and the biggest gains tend to come from the fundamentals rather than the details.

Choosing the right cover for an electric car 

Because electric cars come with different components and risks, it’s worth making sure your cover reflects that.

Policies designed with electric vehicles in mind can include things like cover for charging cables, protection for home charging equipment, and support if something goes wrong while charging away from home. These aren’t always standard in traditional car insurance policies. 

NFU Mutual’s electric and hybrid vehicle insurance is designed around those differences, offering cover that reflects how electric cars are actually used, not just how they’re powered. It’s worth considering alongside the price, particularly if you want cover that’s tailored rather than adapted. 

So, are electric cars more expensive to insure? 

In many cases, yes. Electric cars are still often more expensive to insure than petrol cars, largely because of repair costs, vehicle value and the way insurers assess risk. 

But that gap is narrowing. As the market matures, the difference is becoming less consistent and less pronounced. 

For most drivers, the better question isn’t simply whether insurance is higher. It’s whether the overall cost of ownership makes sense. And increasingly, for electric cars, the answer to that is yes.