With the growing popularity of electric vehicles (EVs), as many as 54% of all UK drivers are considering making the switch from petrol-powered cars to EVs within the next five years. But with this change comes a new set of considerations, including insurance costs and cover.
So in this article, we’ll explore the differences between EV and petrol-powered car insurance.
And whether you own an EV or a petrol-powered car, we’ve also got some great tips to help you find the perfect car insurance for your ride at the end.
So buckle up and let’s get started!
Historically, petrol-powered cars had lower insurance than electric vehicles due to their expensive repair or replacement costs after an accident.
However, analysis from price comparison sites like GoCompare has shown that this trend changed in 2020. Now, EVs are £45 cheaper on average to insure than petrol and diesel cars.
The reason for this reversal may be that insurers have come to the realisation that EVs require less maintenance and care than petrol cars since they have fewer moving parts, making them more reliable and less likely to break down.
Additionally, they are more secure as they require a special charger to run, thus making them less desirable for theft. This could be the reason why none of the top 10 vehicles stolen in the UK in 2022 is a fully battery-electric vehicle.
Also, some countries and states offer incentives for electric car ownership, which can impact insurance rates. For example, in California, the Clean Vehicle Rebate Project provides a rebate on purchase and lease of electric vehicles and on insurance premiums.
To find out exactly how much it’s going to cost you, you can request a quote for your electric vehicle car insurance with ROLLiN’.
The coverage of EV and petrol-powered car insurance also differs. Generally speaking, EVs are covered for the same risks as petrol-powered cars, including theft and damage.
However, there may be additional cover available to EV owners that you wouldn’t typically find on a petrol-powered car policy. These include cover for electric car charging stations, regenerative braking system, batteries, and home-charging equipment, as well as travel expenses relating to getting your EV serviced due to a lack of access to a charging station.
The battery is a critical component of an EV, as it stores the electrical energy needed to power the vehicle’s electric motor. Without a working battery, the EV would be unable to operate.
Unlike petrol-powered vehicles, batteries in EVs account for a large portion of the overall cost of the vehicle. For example, the battery for a £70,000 Tesla Model S would cost around £11,800, which makes up almost 17% of the total cost!
Due to this importance, some insurance companies have begun offering coverage for batteries as part of their EV insurance policies.
This coverage can provide protection against damage or failure due to accidents, natural disasters, and other covered events.
Just like in petrol-powered vehicles, the braking system of an EV is also designed to slow the car down and stop it. However, EVs use a regenerative braking system that works differently in that it converts some of the kinetic energy from stopping back into electricity and stores it in the battery for future use.
As such, insurers offer additional cover for the regenerative braking systems of EVs, as they would be more expensive to repair or replace than a petrol-powered car’s braking system.
EVs produce fewer emissions than petrol-powered cars. In MIT’s Insights Into Future Mobility study, researchers found that, on average, fully battery-electric vehicles created just 200 CO2 per mile driven, while petrol cars emit more than 350 grams. This makes EVs an environment-friendly option.
Car insurance providers recognise this and offer green policies with discounts to reward drivers for making the switch. These discounts could be in the form of lower premiums and cashbacks.
Range anxiety – or the fear of running out of charge during a journey – is a major concern for those considering switching to an EV. In a survey by Volvo, 58% of the respondents said that range anxiety is a barrier for purchasing an electric car.
To reduce this anxiety, many insurance providers will cover any out-of-pocket costs incurred when running low on charge in the same way petrol-powered car insurance policies would pay for repairs or damages caused by accidents.
Aside from the differences mentioned above, EV and petrol-powered car insurance are otherwise fairly similar.
Cover for both types of vehicles includes liability coverage, collision coverage, comprehensive coverage, uninsured motorist coverage, medical payments/personal injury protection (PIP) coverage, and gap insurance in case your vehicle is stolen or written off before you can pay off your loan.
Even the insurance providers for both types of vehicles are largely the same, with a few exceptions offering extra cover for EVs.
Finally, the process for filing claims and obtaining payment is essentially the same for both vehicle types.
Whether you’re looking for EV or petrol-powered car insurance, here are five tips to help you find the best coverage for your car:
Consider your driving needs: Before shopping around, think about what type of a driver you are and how much protection you need. Are you a high-mileage driver? Do you drive in urban or rural areas? Considering these details can help you choose the right type of cover for your car.
Compare quotes: Get quotes from multiple providers to compare the different cover options they offer and their prices. Be sure to read through each policy carefully and ask questions if you don’t understand anything.
Look for discounts: Many insurers offer discounted rates on car insurance policies, so be sure to ask about any discounts you might be eligible for. This includes a multi-car discount, vehicle safety discount, new car discount, anti-theft devices discount, and good driver discount.
Review the cover: Make sure you understand the coverage included in your policy, such as liability protection and medical payments coverage. Additionally, look at how much your deductible will be if you need to make a claim.
Choose a reputable provider: Select a provider that is well-reviewed and offers good customer service.