Insurance of E cars
Discussion
How do insurance premiums vary for electric vehicles? Whilst the cars are expensive there are far fewer components to replace and put right in the even of a claim/bash. Also do they have warranties as there is only one moving part so to speak, but the battery is obviously a major concern? Also do they require services and MOTs?
Depends on the car. Because a lot of EVs are very new the insurance prices tend to be high simply because they don't have experience of things like part availability or how likely crashes are to be expensive.
As time goes by and insurance companies get to understand EVs the prices go down.
As time goes by and insurance companies get to understand EVs the prices go down.
I went from a Golf R to an M3P.... so a bit more cost, and a bit more performance.
Insurance went up about £20 for the year, from £430 to £450.
Obvs your experience will vary as they base it on so many things.
Service and MOT - depends on the manufacturer/car. MOT yes, that's the legal requirement. Service, some do, some don't. Tesla for example recommend a few things, but you can do nothing, and it won't effect the warranty.
But if you rely on an annual service to check the tyres, brakes, washer fluid... then you'll need to get someone to do that still.
Warranty again varies. Most do the usual 3/4 year for the car. And most do extended for battery and motor, eg. 8 years/100,000 miles.
Insurance went up about £20 for the year, from £430 to £450.
Obvs your experience will vary as they base it on so many things.
Service and MOT - depends on the manufacturer/car. MOT yes, that's the legal requirement. Service, some do, some don't. Tesla for example recommend a few things, but you can do nothing, and it won't effect the warranty.
But if you rely on an annual service to check the tyres, brakes, washer fluid... then you'll need to get someone to do that still.
Warranty again varies. Most do the usual 3/4 year for the car. And most do extended for battery and motor, eg. 8 years/100,000 miles.
Edited by phil4 on Friday 30th July 12:22
I went from a Merc C220 diesel to Hyundai Kona electric (old bloke, safe area)
Insurance dropped from £250 to £188.
Maybe the insurance is low because of all the radar assisted cruise control, blind-spot warning, lane-keep assist, auto emergency braking etc, It's damned difficult to crash one of these things.
Insurance dropped from £250 to £188.
Maybe the insurance is low because of all the radar assisted cruise control, blind-spot warning, lane-keep assist, auto emergency braking etc, It's damned difficult to crash one of these things.
Most stuff already answered and owning an EV is actually very simple and straightforward.
Insurance is absolutely variable though - Tesla insurance in the US is actually quite expensive but utterly variable based on location and driver risk, but when it comes to other running costs, an EV will be lower. Servicing, inspection, brakes etc - all will be lower, just have to stump up for the higher initial cost.
However, will draw attention to the servicing part - contrary to what some in the EV world say, servicing IS needed. It shouldnt be expensive, but an annual service is needed simple things like coolant, screen wash, brake / tires / fluid does need checking. I have heard some horror stories about EV owners who just drive and drive and drive and dont service their cars, thinking that its zero maintenance (because that is what they have been told). Only to end up with massive bills to fix issues and wear items that could have been resolved a long time ago.
And final comment on warranty stuff - varies according to manufacturer and from what I have heard, they have been pretty good to honor this. The biggest concerns for most people are the batteries, being the single biggest cost for most EV's. BMW, Tesla and others have all been seen to honor the warranties and in general its good. However, do expect to have a degradation in total capacity over an extended period of time. In general, most are good, but your petrol powered car will also lose some power over time too, so it is not unique, but do expect a drop. Check the small print in the warranty though - if its within what the manufacturer calls 'acceptable' then there is nothing going to happen. If its over, they will usually replace. Just be aware of that.
Insurance is absolutely variable though - Tesla insurance in the US is actually quite expensive but utterly variable based on location and driver risk, but when it comes to other running costs, an EV will be lower. Servicing, inspection, brakes etc - all will be lower, just have to stump up for the higher initial cost.
However, will draw attention to the servicing part - contrary to what some in the EV world say, servicing IS needed. It shouldnt be expensive, but an annual service is needed simple things like coolant, screen wash, brake / tires / fluid does need checking. I have heard some horror stories about EV owners who just drive and drive and drive and dont service their cars, thinking that its zero maintenance (because that is what they have been told). Only to end up with massive bills to fix issues and wear items that could have been resolved a long time ago.
And final comment on warranty stuff - varies according to manufacturer and from what I have heard, they have been pretty good to honor this. The biggest concerns for most people are the batteries, being the single biggest cost for most EV's. BMW, Tesla and others have all been seen to honor the warranties and in general its good. However, do expect to have a degradation in total capacity over an extended period of time. In general, most are good, but your petrol powered car will also lose some power over time too, so it is not unique, but do expect a drop. Check the small print in the warranty though - if its within what the manufacturer calls 'acceptable' then there is nothing going to happen. If its over, they will usually replace. Just be aware of that.
One modest caution.
Although better than a year or so ago, the current situation is that the number of companies who will insure EV's (at any price) is still relatively small. Growing all the time, yes. But still a small subset of all insurers.
They are viewed as high risk from a crash perspective (fast acceleration, expensive components) and - rightly or wrongly - from a fire risk perspective.
My experience is that premiums are dearer and excesses higher. This will creep down but there is a way to go.
Although better than a year or so ago, the current situation is that the number of companies who will insure EV's (at any price) is still relatively small. Growing all the time, yes. But still a small subset of all insurers.
They are viewed as high risk from a crash perspective (fast acceleration, expensive components) and - rightly or wrongly - from a fire risk perspective.
My experience is that premiums are dearer and excesses higher. This will creep down but there is a way to go.
Tesla insurance being expensive is apparently more about repair costs (parts delays, fewer approved body shops, etc) than performance or fire risk or anything else.
Had no issues with Golf GTE or eGolf now but the non-electric parts are standard Golf and they have all the safety stuff of a mk7 Golf (auto emergency braking, etc).
Had no issues with Golf GTE or eGolf now but the non-electric parts are standard Golf and they have all the safety stuff of a mk7 Golf (auto emergency braking, etc).
sjg said:
Tesla insurance being expensive is apparently more about repair costs (parts delays, fewer approved body shops, etc) than performance or fire risk or anything else.
Is a Tesla that much more expensive than an equivalent combustion car?Ours X is £70 more compared to a much slower and cheaper Lexus saloon for identical driver details.
Those not seeing much increase in cost, can you confirm you are keeping the same excess. I haven't checked for about 12 months, but the last time I looked at EV cars and Bikes i needed to change from 0 to £600 voluntary excess to keep similar costs on equivalent cars. As others have said it will be different for all, and my experience may well be out of date.
ZiggyNiva said:
Those not seeing much increase in cost, can you confirm you are keeping the same excess. I haven't checked for about 12 months, but the last time I looked at EV cars and Bikes i needed to change from 0 to £600 voluntary excess to keep similar costs on equivalent cars. As others have said it will be different for all, and my experience may well be out of date.
I found that the easiest way around a higher excess (especially on Teslas) is to buy excess insurance from the likes of ALA - they offer a discount on here - as that tends to be far cheaper than reducing your excess with the insurance company.
The performance of EVs can make insurance a lot more for younger drivers. You do hear of stories of "Im 21 and bought a Tesla with a 0-60 time of 3s but the insurance is £4k" - are you really surprised?
Once the performance aspects is less of an issue of insurers its then down to repair costs. EV's might be simple, but that doesn't make them cheap. Damage a battery pack and a new engine looks cheap. And companies like Tesla have a replace not repair policy - so official body shop bills can become pretty steep very quickly.
When it comes to repairs, motors are generally 8 year warrantied, but once these are out of warranty, I'm not sure the repair costs will be cheap. There's not much of an aftermarket repair industry but will people just be swapping out motors and batteries for reconditioned parts whereas an ICE might need a new clutch which can be done in a backstreet garage on an 8 year old car. Not convinved EV's will be cheaper when something goes wrong, they might just go wrong less often. As an aside, the Tesla Model S made the list of the top 10 most expensive cars to buy a warranty for accounding to a carwow video in partnership with warrantywise I think, and thats despite the batteries and motors all still being under manufacturers warranty.
Maintenance wise, there's still plenty to go wrong, there's a lot more plumbing than most people imagine, plus there's still all the suspension and braking parts that need looking after. The last ICE we ran for any length of time was sold at 8 years old and the engine was remarkably trouble free however we did have issues with electrical problems with the roof and boot (it was a convertible) and handbrake locked on - if you could buy a EV convertible it could potentiualy have the same issues.
Once the performance aspects is less of an issue of insurers its then down to repair costs. EV's might be simple, but that doesn't make them cheap. Damage a battery pack and a new engine looks cheap. And companies like Tesla have a replace not repair policy - so official body shop bills can become pretty steep very quickly.
When it comes to repairs, motors are generally 8 year warrantied, but once these are out of warranty, I'm not sure the repair costs will be cheap. There's not much of an aftermarket repair industry but will people just be swapping out motors and batteries for reconditioned parts whereas an ICE might need a new clutch which can be done in a backstreet garage on an 8 year old car. Not convinved EV's will be cheaper when something goes wrong, they might just go wrong less often. As an aside, the Tesla Model S made the list of the top 10 most expensive cars to buy a warranty for accounding to a carwow video in partnership with warrantywise I think, and thats despite the batteries and motors all still being under manufacturers warranty.
Maintenance wise, there's still plenty to go wrong, there's a lot more plumbing than most people imagine, plus there's still all the suspension and braking parts that need looking after. The last ICE we ran for any length of time was sold at 8 years old and the engine was remarkably trouble free however we did have issues with electrical problems with the roof and boot (it was a convertible) and handbrake locked on - if you could buy a EV convertible it could potentiualy have the same issues.
Heres Johnny said:
The performance of EVs can make insurance a lot more for younger drivers. You do hear of stories of "I'm 21 and bought a Tesla with a 0-60 time of 3s but the insurance is £4k" - are you really surprised?
I think this is really the key, a quick car is going to cost more to insure, the power train makes no difference cost-wise for me.Gassing Station | EV and Alternative Fuels | Top of Page | What's New | My Stuff