As the automotive world gradually shifts towards electric vehicles (EVs), a new financial concern emerges for potential owners: the cost of insurance. Recent reports have stirred up the debate, suggesting that insuring an electric car might be considerably more expensive than its internal combustion engine (ICE) counterpart. This raises the question: are EVs truly costlier to insure, or is this just a misconception fueled by sensational headlines?
To demystify this, a detailed comparison was conducted, focusing on the insurance costs of both EVs and ICE vehicles. This involved acquiring insurance quotes for three different car models in both their electric and petrol/diesel versions from Confused.com. The models chosen for this comparison were the Vauxhall Corsa, MG ZS, and BMW X3. The study aimed to present a clear picture by averaging the five most affordable quotes for each car and driver profile.
The findings painted a nuanced picture. While insurance for EVs was generally higher, the difference was not as stark as some reports suggested. In fact, for one driver profile, insuring an EV turned out to be more economical. On average, the insurance premium for the MG ZS EV was found to be 10.4% higher than its petrol variant, the Corsa Electric’s insurance cost 16.6% more than the ICE version, and the electric BMW iX3 demanded a 20% premium over its diesel counterpart.
A significant factor in the overall high insurance costs for EVs was attributed to popular models like Tesla, which face high insurance premiums due to their placement in the same insurance group as luxury sports cars. A case in point is the Tesla Model 3, which showed a staggering 87.57% higher average insurance cost compared to a petrol Audi A4 for the same driver profile.
Experts, including Louise Thomas from Confused.com, explain that the higher insurance costs for EVs are due to a combination of factors, such as fewer insurers offering policies for EVs, leading to less competitive pricing, and inherent risks associated with EVs like faster acceleration and costly repairs.
Despite these challenges, Tesla is proactively working to mitigate these costs, introducing its own insurance product in the US, albeit with no current plans for expansion to the UK market.
Below is a comprehensive table showing the insurance cost comparisons for the various car models and driver profiles:
| Driver Profile | Vauxhall Corsa 1.2T 130 (ICE) | Vauxhall Corsa Electric | MG ZS 1.0T GDi (ICE) | MG ZS EV | BMW X3 xDrive30d (ICE) | BMW iX3 (EV) | Audi A4 2.0 TFSI (ICE) | Tesla Model 3 (EV) |
|---|---|---|---|---|---|---|---|---|
| Female (28), Teacher, Plymouth | £479 | £537 | £522 | £617 | £1,023 | £1,232 | £974 | £1,193 |
| Male (46), Accountant, Colchester | £493 | £554 | £522 | £596 | £888 | £1,002 | £1,022 | £2,427 |
| Male (65), Retired Director, Middlesborough | £310 | £404 | £368 | £348 | £812 | £1,037 | £636 | £1,314 |
This study offers a clearer perspective on the insurance landscape for electric vehicles, suggesting that while there are indeed higher costs associated with EV insurance, the situation might not be as dire as some headlines indicate.
For more detailed information, see the original article on Auto Express.