Car insurance premiums will be more expensive as the upfront costs of electric models are higher compared to traditional vehicles. However, experts have warned that premiums should reduce ”over time” as electric models become the norm.
Lee Griffin, CEO and founder of Go Compare warned that drivers will find insurers take many different approaches for electric vehicles premiums.
He warned that drivers needed to compare costs carefully to ensure road users were still able to enjoy the benefits of lower running costs.
He said: “This example proves how important it is for new electric car drivers to shop around and compare car insurance premiums from a number of insurers.
“Although drivers may expect to pay more to insure a more expensive car, as electric variants of popular models usually are, they may be surprised to find that the approaches taken by different insurers to electric cars can vary widely.
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“If drivers assume that an insurer offering a competitive quote for a car with a petrol or diesel engine will be equally competitive for an electric or hybrid version, they may find themselves several hundred pounds out of pocket.
“We are at a tipping point in car buying behaviour. Over time we would expect the prices of electric and hybrid cars to come down to match those of fossil fuel powered vehicles and likewise car insurance premiums should reduce as well.
“Until then, drivers going green must compare insurance premiums carefully if they are going to make the most of the potentially lower running costs electric and hybrid cars can offer.”
MoneySuperMarket found that the cheapest electric car to insure was a Nissan Leaf with costs at £623 a year which was more expensive than either a petrol or diesel vehicle.
She also confirmed that insurance prices would eventually fall once the car market underwent a “degree of correction” to the changes.
Ms Codjoe said: “With so much uncertainty around the cost of electric vehicles, it’s no wonder that motorists are concerned about their car insurance premiums rising.
“Some electric vehicles are more expensive to insure due to the cars’ higher purchase price, the need for specialist equipment and repairs, and a lack of data on driver behaviour.
“However, as more drivers make the switch to electric, it is predicted that the insurance market will undergo a degree of correction, and as a result, premiums will fall.”
Published at Thu, 19 Nov 2020 13:58:55 +0000