Companies like John Lewis mention that their underwriter is evaluating the risks and expenses related to EVs. Earlier this year, Aviva temporarily stopped issuing new policies for the Tesla Model Y, the current top-selling EV in the UK.
Recently, there have been reports in the national media about the high cost of EV insurance. Some drivers claim they were quoted premiums as high as £4500, while others say their renewals doubled or even tripled. However, upon closer examination, many of these drivers admit to having accident claims and speeding penalties. They also found far cheaper cover by shopping around, although it was still more expensive than what they paid the year before.
Will the premium increases continue?
Despite insurers’ concerns about the rising number of EVs on the roads, Kelly predicts that this trend will actually help reduce the cost of insuring such cars.
“As more second-hand EVs enter the market at lower prices, their insurance premiums will decrease,” he said. Fry also mentioned that the growing number of EVs will provide repairers with confidence to invest in EV repairs.
“As we see more EVs in the market, I expect to see more repairers investing in the necessary equipment and skilled staff to repair them,” he said, “which will help resolve the current challenges.
What happened when we looked deeper
Seeking to gain a clearer understanding of EV insurance costs, we obtained quotes for four used EVs for a 63-year-old individual with eight years’ no-claims bonus and a clean license, living in Surrey.
Approximately 50 insurers provided comprehensive quotes through comparison provider Go Compare, ranging from £454 on a Smart EQ Forfour to £4887 on a Tesla Model Y. Within this range, each EV received a wide range of quotes, as shown on the right.
While recognizing that EV insurance is more expensive than cover for an equivalent petrol or diesel car, the exercise at least highlighted the importance of shopping around. It also revealed that insurers claiming to be EV-friendly can be among the priciest, while Admiral was often among the cheapest insurers.