Choosing The Right Car Insurer For Your EV
As more insurance companies offer electric car insurance, we look at what type of cover these new EV policies carry, what the benefits are to the policyholders, and how we can determine which insurers are the most popular with each particular EV model.
When I bought my first EV, back in 2013, I couldn’t use price comparison websites to select and compare BMW i3 insurers because the car was too new and there was no data available for it at that time. Not only that, but relatively speaking, EV’s were fairly recent to the market back then. Of course, the Nissan Leaf was already on the scene three years earlier, and the G-Wizz 10-years before that, but EVs were insured based on their purchase price, annual mileage, postcode, and generally categorised under existing combustion car insurance data. AXA was my insurer at the time for my 51-plate Saab 93 Aero, so they helped me off the start line with a slightly higher price.
We continue to use price comparison sites to help us decide which insurer to go with, basing it upon price, the type of cover (comprehensive or third party), legal or medical and hire car cover, etc. And roughly in that order of priority. Now, as EVs grow in popularity, insurers are creating EV policies providing a few extra elements of cover for a buyer’s peace of mind.
But it’s still not easy to navigate the policies when they are primarily cost-led. How do you know which insurer is the most popular with other owners of the same model of electric car? You might have decided on an insurance policy that isn’t EV-specific, purely determined on the merit of cost, when perhaps others got a better deal on because their policy included EV-specific coverage that you never thought to check for, or where shown in the comparison search results. If you’re unsure, follow up from the results with a phone call to the insurer. Then you can then be sure you’re getting an EV policy that suits your needs exactly.
Now, bearing that in mind, I should point out that sometimes EV manufacturers offer one or two extra benefits that it’s worth double-checking on before you spend more on extra coverage of a new EV insurance provider, specifically if you are buying brand new.
Some manufacturers, like BMW and Polestar, give their EV buyers an SOS rescue service if they run out of range, a long way from any charger. Some others might supply a courtesy car if your EV goes back to them for repair. It’s wise to check this before taking out cover that you might be doubling-up on.
In all other cases (where buying a second-hand EV, or buying from less supportive manufacturers), insurers have developed unique EV-specific plans with some very particular elements of cover, ranging from:
• Recovery for running out of charge (and relocation to the nearest charger);
• EV replacement hire for those committed to more environmentally-friendly vehicles;
• Coverage for home charging cables, wall boxes and adaptors;
• Access to a network of specialist electric car repairers; and
• Electric cable tripping claims.
Insurers are trying to normalise electric car ownership to give peace of mind to those new to buying electric cars.
You might now be thinking that you need specialised ‘Electric Car Insurance’? Well, you don’t.
So long as your insurer will protect you for the car you wish to cover, EV car insurance offers the same protections as normal car insurance, but with these added benefits. The question here is: how much cover do you want, and, if you’re financing your EV, what are the terms of your lender? Normally they will require you to have fully comprehensive cover, but they may not require you to have EV-specific insurance.
As EV insurance companies gather more data, the price of EV insurance will begin to even out with combustion equivalents. After all, there are less moving parts inside an electric car, and the range of EVs is increasing, as well as more charging locations becoming available to prevent isolated ‘out of range’ issues. Battery warranties last 8–10 years or 100,000mi*, so the battery is normally covered unless you should accidentally damaged it (i.e ground your EV).
It may also be helpful to know the cost of insuring an EV, which can often seem a little expensive when you look at the advertised prices. But prices are based on many averages: driver age, no-claims discounts, annual mileage, and ultimately the value of the car.
In my case, I paid £445 to insure my 2018, BMW i3 94Ah (BEV) with Liverpool Victoria’s EV policy.
So don’t be put off by these advertised prices. Please always check online or by phoning the insurer.
Here are a few EV insurers worth looking into:
• Liverpool Victoria — https://www.lv.com/car-insurance/electric-car-insurance
• Admiral — https://www.admiral.com/car-insurance/electric
• Aviva — https://www.aviva.ca/en/find-insurance/vehicle/electric-vehicle-insurance
• Direct Line — https://www.directline.com/electric-car-cover
How do you determine which insurers are the most popular with for each EV model?
The only way to find out in the past was to join forums, hope your questions don’t go unanswered and immerse yourself in the world of EVs to discover what everyone else with the same model car were choosing.
But I now use an EV product recommendation app which is based on real EV owner products. Here is a link to my electric car’s set of products:
https://app.electrictogether.com/james
It allows EV owners to connect their electric car with their energy, insurance, and chargers, so you can see which products are the most popular for that particular EV model. You can also paste your referral codes behind the products you select, so you can have all your referrals in one place. Then at a glance, I can see the popular insurance companies for any given EV model under ‘Find Cars’, making it easier to figure out what the best policy might be for my car. EV enthusiasts tend to do their research very well, so maybe seeing the most popular recommendation will serve as a shortcut to the right insurer and you can benefit from another driver’s referral link and help save a few quid at the same time.
Written by
James Ellis-Brown
This article does not constitute financial or insurance advice. Please use your own research when deciding on an insurer or seek independent financial advice and *check the status and small print of the car’s warranty you are planning to buy.
