Understanding the Higher Insurance Costs for Electric Vehicles
Electric vehicles can be cheaper to run, but insurance costs remain a concern for some drivers because of repair bills, battery damage and specialist parts.
By BBC News
Electric vehicles can be cheaper to run than petrol or diesel cars, but insurance costs remain a concern for many drivers.
Higher premiums are one of the factors prospective buyers are being urged to consider before making the switch to an electric car.
The issue is not simply that insurers dislike electric vehicles.
Premiums are based on risk, repair costs, claims data, vehicle value, parts availability, driver profile and how long a car may be off the road after an accident.
For electric vehicles, several of those factors can push prices higher.
One of the biggest issues is repair cost.
EVs often use more expensive components than comparable petrol or diesel cars, including high-voltage battery systems, power electronics, sensors and advanced driver-assistance technology.
If a battery pack is damaged, the cost of inspection, repair or replacement can be high.
In some cases, even relatively minor accident damage can lead to a vehicle being written off if the battery cannot be assessed or repaired economically.
Repairs may also take longer because work on high-voltage vehicles requires specialist training and equipment.
That can increase labour costs and may also add to the cost of courtesy cars while a vehicle is being repaired.
The Association of British Insurers has said repair costs remain one of the main pressures on motor insurance premiums.
It reported that insurers paid out £1.9bn for vehicle repairs in the first quarter of 2026, while the average accidental damage claim rose to £3,699.
ABI guidance also cites Thatcham Research analysis showing electric vehicles are around 25% more expensive to repair than equivalent petrol or diesel vehicles and take 14% longer to repair.
Vehicle value is another factor.
Many electric cars are still relatively expensive to buy, particularly newer models with larger batteries and longer range.
A higher purchase price can mean a higher potential payout for the insurer if the car is stolen or written off.
Some electric cars also offer strong acceleration, which can affect how insurers assess risk.
Although not every EV is high-performance, the instant torque of electric motors means some models are quicker than drivers may expect.
Insurers also look at claims history.
As more electric cars enter the market, insurers are building a clearer picture of which models are cheaper or more expensive to repair.
That should help pricing become more accurate over time, but the market is still developing.
The insurance gap between electric and petrol cars may narrow as repair networks grow, parts become more available and technicians gain more experience.
However, buyers should not assume an EV will automatically be cheaper overall just because it has lower fuel and servicing costs.
The total cost of ownership should include insurance, charging, road tax, tyres, depreciation, servicing and finance.
Tyres can also be a consideration.
Electric cars are often heavier than petrol equivalents because of the battery, and some use specialist tyres designed to handle extra weight and torque.
That does not directly determine insurance on its own, but it adds to the wider running-cost picture.
Drivers considering an electric car should get insurance quotes before buying, not after.
The same model can produce very different quotes depending on age, postcode, driving history, mileage, parking location, excess, occupation and insurer.
It is also worth checking the insurance group, battery warranty, repair network and whether the manufacturer has approved repair centres nearby.
Choosing a lower-powered model, increasing the voluntary excess, improving security, parking off-road where possible and shopping around at renewal can all help reduce costs.
Some drivers may also benefit from telematics or mileage-based insurance, depending on their circumstances.
The higher cost of EV insurance does not mean electric cars are a bad choice.
For many drivers, savings on fuel, reduced maintenance and access to home charging can still make them attractive.
But insurance should be checked early, especially for younger drivers, high-value models and households switching from an older petrol or diesel car.
As the electric vehicle market matures, repair costs and insurance pricing may become more competitive.
For now, the safest approach is to compare real quotes before buying and look at the full cost of ownership, not just the headline price of the car.