Why can electric vehicle insurance be more expensive?

Written by Benedict Harrison

Published on

Why some insurers charge higher premiums for electric vehicles, what Zego offers drivers who use an electric car and how to get started with a quote.

In recent months and years, there has been an increase in the number of private hire and delivery drivers using electric vehicles to carry out their work. With benefits including exemption from road tax, the Ultra Low Emission Zone (ULEZ), zero emission zones and congestion charges, it’s no surprise that many drivers are looking at electric vehicles as an affordable solution.

However, some drivers are worried about what impact switching to an electric vehicle will have on the cost of their insurance. After all, the vehicle you drive is one of the factors that affects your insurance premium.

In this post, we’ll take a look at why some insurers charge higher premiums for electric vehicles, what Zego offers for drivers using an electric car and how to get started with your quote for Private Hire or delivery insurance.

Why are premiums higher for electric vehicles?

If an incident occurs where the battery of an electric vehicle is damaged, it can be a complex process to repair, which means that the total cost of a claim can increase. If claims payouts are higher for electric vehicles, then this will be reflected in higher premiums for the drivers as incidents can have greater financial consequences.

As many electric vehicles are fairly technologically advanced, they are often built using specialist parts, which can be both more difficult and more expensive to replace than for standard parts for petrol or diesel vehicles. The lack of mechanics who have the skills required to carry out such repairs can also mean that repair costs can be higher.

So is it more expensive to use an electric vehicle than a petrol or diesel car?

Not necessarily. Not all insurers charge higher prices for electric vehicles and using an electric car can help to reduce other costs associated with your work if you regularly travel in

Ultra Low Emission Zones (ULEZs) or go into areas that incur congestion charges. With congestion charges of £15 and a daily ULEZ charge of £12.50, your savings can add up very quickly.

On top of this, it costs an average of £4 to charge an electric vehicle to cover up to 100 miles. If you travel the same distance in a petrol car, you can expect to pay around £14 for fuel, so electric may still work out cheaper for you in the long run.

What does Zego offer electric vehicles?

For more information about our products, you can visit our Private Hire insurance or car delivery insurance pages, where you can learn more about the options we have available.

If you have any questions, please get in touch with our team and we’ll be happy to help.

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