EV drivers could pay an extra £231m insurance bill
Drivers could pay an additional £231m annual insurance bill for battery-powered vehicles according to research exposing the disparity between EVs and traditional models.
As the size of the UK's battery electric vehicle (BEV) fleet soars towards two million in 2025, analysis by Vantage Leasing has found that EVs cost an average of 14% – or £116 – more to insure than equivalent petrol or diesel models.
The added costs don't stop there as retail prices for electric vehicles remain stubbornly high, commanding an estimated 18% premium over their traditionally powered relatives, says the prestige vehicle leasing specialist.
While the average difference was 14%, EV cover can be as much as 37% pricier than a petrol or diesel equivalent. This means that, by 2025, motorists could be paying an additional £231m in insurance annually as the UK's car parc of BEVs reaches a predicted two million.
Surprisingly, charging an EV in a garage overnight could mean higher insurance premiums. The research showed that insurance is usually cheaper when parked on the road than in a garage.
Vantage Leasing managing director Rob Walker, said, 'There's no doubt UK motorists are ready for EVs. Demand is growing because the technology and infrastructure is getting better every year. However, this optimism could easily be curtailed if the costs mount up. After all, electric cars are touted as being both kinder to the environment and easier on the wallet, so the industry must ensure they are affordable to ensure they become increasingly popular.'