Electric car insurance prices are likely to ‘come down’ as more drivers switch models
Martin Lewis gives advice on when to renew car insurance
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Electric vehicle car insurance policies are currently more expensive than petrol and diesel moles for a variety of reasons but this is soon likely to change. Policies are only more costly because there are currently fewer replacement parts widely available meaning the price of repairing a vehicle is higher.
However as electric models become the norm, parts will become more widely available which could see costs tumble.
Ryan Fulthorpe, spokesperson for Go Compare said it was also taking some time to build up “data analysis” on driving behaviours of electric models.
Speaking to Express.co.uk, he said until prices drop, drivers must compare premiums carefully to find the best deals for lower running costs.
He said: “Electric vehicles are certainly becoming a more popular fuel type to drive in the UK, and with the UK Government’s plans to ban production of new petrol and diesel vehicles from 2030, more and more car and van manufacturers are committing to producing Electric models.
“As it stands, in most instances electric vehicles are more expensive to insure than their petrol/diesel equivalents due to a couple of reasons.
“Firstly, with less drivers using EVs it takes insurers longer to build up data analysis on these vehicles and driving behaviour to price appropriately.
“Also with less EVs on the road there are less replacement parts widely available and so should a driver have an accident, it could be more expensive to repair these vehicles.
“Over time, as the popularity of EVs increases we would expect the prices of these vehicles to come down to match those of fossil fuel-powered vehicles – likewise car insurance premiums could well reduce in line with this.
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“Until then, drivers going green must compare insurance premiums carefully if they are going to make the most of the potentially overall lower running costs these vehicles offer.”
Compare the Market confirmed vehicles are often found in higher car insurance groups which usually mean higher costs.
The electric-powered Nissan Leafs can be found in groups 20-35 compared to an almost identical Ford Focus which is in group 14.
Data form the group found drivers could pay over £500 per year to insure a Hyundai Ioniq Hybrid Premium model.
Car insurance costs could be over £700 per annum for a Smart ForFour Passion with charges rising to over £1,250 for a Tesla Model 3.
However, they warned insurance firms were starting to realise electric cars were no just a futuristic fad” and has started to offer more competitive agreements.
Money SuperMarket said insurers now have more data on the models which has driven down cover.
They said an average policy for a Nissan Leaf was up to £745 between 2018 and 2019.
However, prices have fallen to around £623 this year in a saving of over £100.
It is likely prices will continue to fall as insurance firms learn more about the models and their popularity increases.
MoneySuperMarekt has also revealed the Nissan Leaf is the most affordable electric car to insure.
This was followed by the Renault Zoe, BMW i3, Volkswagen e-Golf and Jaguar I-Pace,
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