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Are EV cars more expensive to insure?

March 5th, 2024

Are EV cars more expensive to insure?

As electric vehicles (EVs) gain in popularity, many prospective EV drivers wonder about the associated costs, including insurance. 

In this article, we'll explore this question and look at the factors influencing insurance premiums for EVs. At Drive Fuze, we're committed to providing clear, comprehensive information to our customers, empowering them to make informed decisions about their transport choices.

Why are EV cars more expensive to insure?

EVs are at the forefront of tech innovation, particularly in their battery systems, which often come with a significant price tag. When EV parts need repairs or replacements, insurers have to consider their high value, which affects insurance premiums because fixing them costs more than traditional car parts.

Servicing an EV requires specialised knowledge and equipment, which means higher labour costs for both repairs and maintenance. The need for trained technicians can escalate the cost of insurance claims associated with EVs.

The EV market is relatively new compared to traditional vehicles, so there’s a lack of historical data for insurers to assess risk accurately. Due to this, insurers set higher premiums for EVs until more data becomes available to inform risk assessments effectively.

Comparing car insurance for EV vs. petrol vehicles

The higher cost of EV insurance is linked to their more costly components and specialised repair needs. Petrol vehicles benefit from more affordable parts and a broader repair network, usually resulting in lower premiums.

The cost of insuring EVs is also closely tied to their value. EVs often have a higher value than petrol vehicles, which can bump up insurance premiums. EVs hold comparable value to traditional cars, which significantly impacts insurance costs.

Vehicle insurance rates also typically factor in considerations like value, power, and acceleration. 

It’s possible that incentives for EV ownership and changes in insurance industry practices could influence future premium costs. As the EV market stabilises, insurance rates may become more competitive with those of petrol cars.

Is EV car insurance more expensive across the board?

While some EV models may have higher insurance premiums, it's essential to recognize that there's significant variability in costs. 

Different factors play a part - such as the specific model of the EV, how it's used, and where it's located. In some cases, certain EV models may achieve parity or even lower insurance rates than their petrol counterparts.

It’s also worth remembering that insurance costs can vary based on individual driver behaviour and policy choices. EV owners who opt for insurance options that reward safe driving, low mileage, or higher deductibles may find that their premiums are comparable to or even better than those for petrol vehicles.

As insurers become more familiar with EV technology and its associated risks, and as the market for EVs continues to expand, the insurance cost landscape will change. 

Drive Fuze offers a strategic approach to cost mitigation for EV insurance. By leveraging our buying power advantage, we enable savings to be passed on directly to customers. This works by insuring an entire fleet and achieving significant cost efficiencies, translating into a more cost-effective solution for subscribers. This unique position allows Drive Fuze to pass on substantial savings, offering unparalleled value in the car subscription market.

Additionally, Drive Fuze provides flexibility in insurance costs by including fully comprehensive insurance in its car subscriptions. Subscribers benefit from comprehensive coverage without being tied to a full year's premium commitment. 

This flexibility extends further, allowing subscribers to cancel with just 14 days' notice. Drive Fuze's commitment to providing cost-effective solutions and flexibility sets it apart, ensuring subscribers enjoy a hassle-free and economically sound driving experience.

Concluding thoughts on EV insurance costs

The ongoing discussion on EV insurance costs shows that it's not as simple as people think.  Assuming that EV insurance is always pricier is not always correct or that straightforward. The type of EV, how you use it, and your driving habits all play a role in how much you pay for insurance.

At Drive Fuze, we're committed to supporting our customers through transparent information and assistance in finding the best insurance deals for their EVs. Our all-inclusive car subscription model simplifies the ownership experience by bundling costs like tax, insurance, and repairs into one convenient package. 

This not only provides financial clarity but also offers the freedom to explore different EV models available from Drive Fuze, including top-of-the-range options.

As you look further into EVs and insurance, we encourage you to explore Drive Fuze's range of electric vehicles and insurance advisory services- our team is here to help. With a positive outlook on the future of EVs and insurance, Drive Fuze remains committed to facilitating an informed and cost-effective car ownership experience for all our customers.

Please get in touch for support on any of the topics raised and how they might affect you as a driver in the UK.