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Tue, 20/08/2019
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Be Wiser Guide to Electric Car Insurance

Electric vehicles are quickly becoming a popular choice for drivers who have a daily reliance on their car or van. This relatively new form of alternative energy has the advantage of having reduced levels of CO2 emissions.

No matter what the fuel consumption of a car, it is a UK legal requirement that all roadworthy vehicles be adequately insured, electric cars are no exception. Electric vehicle technology is relatively new in comparison to the vast history of the fossil fuel car. In this guide, we will explore electric vehicle insurers or mainstream insurers? As well as providing helpful tips so that you can get the best premium for your car insurance.

Is electric car insurance more expensive?

The cost of your car insurance policy is a key influencer if you are thinking of buying an electric vehicle. How much it will it cost to insure, what extra features does the vehicle have are generally the primary questions you will ask. This is no different for those who have opted for a more sustainable vehicle.

Car insurance for electric cars is typically more expensive. In general, electric cars have fewer moving parts than their fossil fuel counterparts, so they are more likely to perform better during MOTs and services. The main hitch for insurers is that these parts, although fewer, are typically much more expensive because of the new technology. The overall cost of the car is more and so are any new parts, this will be reflected in the insurance premium.

Should I get electric car insurance from a specialist?

As electric cars are a relatively modern members of the motoring industry, finding adequate car insurance for was initially hard to come by. Whilst the technology was new and therefore expensive, electric cars were very much a rarity on the road, many of the mainstream insurers did not see them as a viable option to insure. Hence, the reason why the numbers of specialist electric car insurance providers grew. These insurers still exist today and remain a viable option for those in the market for an insurance policy for their electric car.

It is worth noting that an insurance policy from an electric car insurance specialist will bring with it a variety of unique benefits however, with the specialist title comes the possibility of a more expensive price.

It is important that you shop around before paying for your policy, because as electric cars have become more common on our roads and mainstream insurers have opened their doors to these electric cars.

How can I reduce my car insurance premium?

The cost of the parts of an electric car are not the only factor that influences the cost of your premium. Although the car’s make, model and engine size are important rating factors, the driver’s, driving history is an important factor for the insurer to consider when calculating the pricing of the policy. 

Younger drivers

Younger drivers are seen as inexperienced drivers and therefore are an increased risk on the road, their insurance premiums will reflect this. Typically, the older a driver is, the more experience they generally have and the cheaper their premiums are rated.

An older more experienced driver has the opportunity to accumulate more years of claim free drive and so add to their ‘No Claims Bonus’. This is something a younger driver will not have the opportunity to do. A driver who has a good few years of ‘no claims’ can benefit from a lower premium – insurers would then rate them as a lower risk. Of course insures also consider other rating factors such as; if they have had any recent accidents and if they have any points on their license.

Adding named drivers

Adding someone to your policy who has had many years of driving experience as a named driver could help reduce the cost of your premium, generally older drivers are rated by an insurer as a lower risk. It is important that the named driver isn’t the primary driver of the policy, as this is known as fronting and is illegal.

Excess on your policy

Finally, another factor you should consider that can influence the cost of your premium is the amount of excess you choose to pay. All policies will come with a compulsory excess (the amount you are required to pay out in the event of an accident) and a voluntary excess (the amount you volunteer to pay).

You can choose how much your voluntary excess is, generally speaking the higher the excess the lower your premium.

The same applies with the level of cover you choose, whether you opt for Comprehensive or Third Party Fire and Theft. 

As always you should shop around to find the best car insurance to suit your needs, but a great place to start is the Be Wiser website.