Electric car insurance cost drops £ 75 in Q1 2021
The average cost of insurance for an electric vehicle fell by £ 75 in the first quarter of 2021, according to new data released today.
Electricity owners will now pay an average annual premium of £ 566, up from £ 641 in the previous quarter. This means that electric vehicles are now generally £ 45 cheaper to insure than petrol and diesel cars.
The figures, released by comparison site Comparethemarket, show the cost of electric car insurance has fluctuated over the years. It peaked at £ 692 in December 2019, before falling back to £ 550 in February 2021 as lockdown measures continued to restrict travel.
Dan Hutson, Head of Auto Insurance at Comparethemarket.com, said: “Electric vehicles are rapidly gaining popularity ahead of the government’s goal of phasing out new gasoline and diesel cars by 2030. 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 happy that our research shows that electric cars could deliver significant financial and environmental benefits over time. If drivers are planning to buy a new car, an electric vehicle could be an attractive option given the savings on insurance, fuel, and taxes.
Drivers can enjoy additional savings by opting for the cheapest coverage available. On average, the cheapest annual premium for electric cars was £ 478 in the first quarter of 2021, which is a significant saving compared to gasoline and diesel cars. Depending on their driving history and experience, EV drivers could save up to £ 133 by opting for a cheaper policy.