Once an automotive oddity, electric vehicles (EVs) are now a common sight on our roads. Whether it's a hybrid or fully-electric model, there are plenty to choose from these days.
Many people go electric because they're concerned about the environmental damage caused by petrol and diesel cars, fossil fuel costs and fears around peak oil. But EVs present some challenges, too.
For starters, range anxiety is real – the distance you can drive in one day, coupled with limited access to charging points. There are also environmental worries: concerns around the manufacturing process, resource extraction and recycling EV batteries.
It's a personal choice and there's plenty to consider. Not least – are there any special insurance issues surrounding these cars?
What is electric car insurance?
Electric car insurance is pretty much the same as your regular variety of car insurance. It protects you in the event of an accident involving your vehicle.
But because electric cars operate differently to traditional vehicles, there are some things you should keep in mind when insuring your electric car:
Power delivery
With no inertia between the ‘engine’, the gearing and the drive train, the response to acceleration – and acceleration itself – is very different in an EV, so take time to practice and learn the characteristics of electric vehicles.
Advanced driver-assistance systems
As with any new car, the amount of in-car technology in an EV can be overwhelming. Take time to understand each feature and its limitations before buying your EV.
Also, a lot of technonology is reliant on a camera built into the windscreen aperture of your car. As a consequence, they can be costly and timely to replace, so check that you have adequate windscreen repair or replacement cover in place.
Battery cover
Whether you’ve bought the car’s battery or you lease it, you need to know if it will be covered should you have an accident. Some manufacturers may expect you to insure the battery, while others may replace or repair it themselves at no extra cost.
Charging cable cover
When charging an electric vehicle you’ll have to plug it into a charging outlet, and this means cables trailing across the ground.
If you’re charging at home on your driveway or in a garage, then that’s fine. But what if you’re parked on the street and need to run a cable across the pavement?
Cables on the floor present a trip hazard, which could mean injury and a potential insurance claim. It’s worth speaking to your insurer to see if they have cover for these kinds of claims.
Special circumstances for electric cars
Electric vehicles do present some other bonuses compared to traditional cars, but as of 1 April 2025, they're no longer exempt from road tax.
However, as they're low-emission vehicles, you may be eligible for a plug-in car and van grant from the Government. It's not something you can apply for, but look out for a discount from the seller if the vehicle you want to buy is eligible. To give you an idea, the following vehicles are currently on the list (May 2025):
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Wheelchair accessible vehicles
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Motorcycles
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Small and large vans
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Small and large trucks
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Taxis
If the EV you’re buying meets certain criteria, your grant will go towards the cost of the car, meaning you'll pay less for it.
EV insurance is a relatively new field, so take your time when shopping for an electric car insurance quote to make sure that it meets your individual needs and circumstances.
