The average cost of insuring an electric car has fallen by £ 75 in the first three months of 2021, new figures show. Data from the price comparison site CompareTheMarket.com showed that electric vehicles are, on average, now almost £ 50 cheaper to insure than their gasoline and diesel equivalents.
In the first quarter of 2021, figures from CompareTheMarket.com revealed that the average price of electric vehicle insurance fell to £ 566. This is a drop from £ 641 in the last three months of 2020 – a drop of £ 75.
The data coincides with similar figures showing that insurance prices are falling across the board, after closures reduced traffic volumes. This in turn meant fewer claims, which saved insurers money and lower premiums for consumers.
Against this backdrop, a reduction in insurance premiums for electric vehicles (EVs) was to be expected, but CompareTheMarket.com says EVs remain cheaper to insure than gasoline or diesel cars. In fact, the company claims the average premium for electric cars is £ 45 lower than gasoline or diesel vehicles.
The news also comes amid an increase in the popularity of battery-electric vehicles. The government now claims that half a million electric and plug-in hybrid vehicles are registered for use on UK roads, and figures from the Society of Motor Manufacturers and Traders (SMMT) highlight the increased demand for electric vehicles. In the first three months of 2021, electric vehicles accounted for 7.5% of all new cars registered, up from 3.8% in 2020.
“Electric vehicles are rapidly gaining popularity ahead of the government’s goal of phasing out new gasoline and diesel cars by 2030,” said Dan Hutson, auto insurance manager at CompareTheMarket.com.
“The transition to electric vehicles will be vital in tackling climate change, but the higher initial cost of these cars compared to traditional models has often been a deterrent for many motorists. Drivers who switch to greener vehicles will be pleased that our research shows that electric cars could deliver significant financial and environmental benefits over time. If drivers are considering buying a new car, an electric vehicle could be an attractive option given the savings in insurance, fuel, and taxes.
“In general, electric cars have fewer complex moving parts that can be damaged compared to a traditional motor, and the batteries are reasonably well protected in the event of an accident, which reduces the risk of replacement. Electric cars are generally less likely to be stolen and more likely to be recovered when they are, due to their limited range and the fact that charging takes a relatively long time.