If you’re looking for the cheapest electric car insurance, you can save time and money at sites like mustard.co.uk where you can compare a wide range of quotes from leading UK insurers. But apart from the cost of car cover, what else will you need to budget for and can owning an electric car really save you money?
How much do electric cars cost?
Electric cars generally cost more than their petrol or diesel equivalents. For instance, a new petrol Vauxhall Corsa costs just under £18,000 but a Vauxhall Corsa-e will set you back nearly £29,000.
As a rough guide, one of the cheapest electric vehicles (EVs) available is the Smart EQ Fortwo which costs £20,725. At the other end of the scale, popular EVs from big-name manufacturers like Tesla will cost significantly more and a basic Model 3 starts at around £48,000.
As well as the cost of the car itself, you’ll need to factor in the cost of an at-home charger which is the most efficient way to charge your EV. Units are available as 3kW and 7kW models and set you back up to £500 and £800 respectively.
The good news is that if you rent your home or live in a flat and have off-street parking, you can get help with the cost of an EV charger under the government’s EV Chargepoint Grant. The grant covers up to 75% of the cost of a new charger up to a limit of £350. The bad news is that since April 2022, homeowners living in other types of accommodation (bungalows, terraces, semi or detached houses), won’t be able to apply for the grant.
Are electric cars cheaper to run and service?
Electric cars cost a lot less to run per mile compared to a petrol or diesel car. In fact, figures from energy firm EDF, show that driving 100 miles in an EV will cost 4.91p per mile, based on an average tariff. In a petrol car, it costs more than double this amount at 12p per mile.
However, despite significant savings per mile, servicing and maintenance costs aren’t as clear cut. On the one hand, EVs have fewer moving parts which means there’s less to potentially go wrong. But if they do need replacing, those parts often cost a lot more to replace. There’s also a short supply of specially trained EV mechanics which can mean servicing costs more too.
How much is electric car insurance?
As a general rule of thumb, electric car insurance is more expensive than traditionally fuelled cars. Part of the reason is electric cars cost more to buy, as do parts. Servicing costs also add to the expense. There’s also the point that insurers have relatively little data about the relationship between electric cars, accidents and claims, which can make pricing trickier.
Not only that, premiums are also affected by a number of factors, including your age, address, and job title. Young drivers in particular pay considerably more than other age groups because they’re statistically more likely to be involved in a car accident.
You can also expect to pay more for car cover if you’ve made an insurance claim in the last five years or you have driving convictions.
So, can an electric car save you money?
Electric cars can save you money but it’s not quite as simple as a yes or no answer. You’ll undoubtedly save money per journey and you won’t have to pay Vehicle Excise Duty (road tax). But don’t forget the pricier aspects of EV ownership, for instance, the higher purchase price, insurance costs and servicing.
Fundamentally, whether or not you save money with an electric car will depend on how long you keep it, how many miles you drive, the cost of electricity and how often the car needs to be serviced or repaired.
To keep costs down, consider a smaller, less powerful EV and try to drive fewer miles. You could also opt for a telematics policy which will calculate premiums according to the way you drive rather than basing it on industry data. You can also save money on EV insurance by comparing dozens of quotes at mustard.co.uk.
