Electric vehicle owners are being warned of expensive car insurance prices, with new data showing that costs have risen by more than £300.
The typical average annual premium for an electric vehicle has risen by £313 year-on-year as drivers continue to be hammered by the cost of motoring.
In November 2023, annual car insurance cover for an electric vehicle cost £929 on average compared to £616 at the same time in 2022.
Many insurance companies have blamed the enormous price hikes on the higher costs of repairing EVs.
Car insurance prices are continuing to rise
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The rapid rise in inflation over recent years has also had an impact, with the cost of spare parts, energy and hiring specialist mechanics have forced prices higher.
This comes at a concerning time for the motoring industry, with the Government and major car manufacturers pushing for the uptake of cleaner vehicles.
Replacing certain parts of electric cars can be more expensive, especially when replacing new batteries, which can be particularly pricey.
Julie Daniels, motor insurance expert at Compare the Market, warned drivers of the rising rate of insurance and the other costs they potentially face.
She said: “EV owners will be concerned about the surging cost of car insurance.
“Drivers who’ve made the switch to an electric vehicle will be glad their choice of car is more environmentally friendly, and they are substantially cheaper to run than petrol-fuelled cars.
“However, the significant upfront cost of buying an electric car and installing a home charging point along with the upcoming tax increases will prevent many drivers from being able to afford this option.”
Some drivers may also be put off by the upcoming changes to motoring taxation laws, which will see electric cars pay Vehicle Excise Duty from 2025.
From April 2025, electric vehicle owners will pay £180 a year from the second year of car registration at the current rate of tax.
Many electric vehicle owners will also be required to pay the expensive car supplement if their car costs more than £40,000, which is currently set at £390 per year.
The cost of driving a petrol-fuelled vehicle has also increased by £337 over the past 12 months.
Data from Compare the Market suggests that the typical premium for a petrol vehicle now costs £980, as of November 2023.
Experts have suggested that elderly drivers are more likely to invest in an electric vehicle because of the higher cost, which also makes them more experienced.
These people may also be more likely to have off-street parking and access to a garage to park their vehicle overnight, giving them more security and lowering the price of their insurance.
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EV owners have seen their car insurance prices grow by £313 in the last 12 months
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All drivers could benefit from shopping around for their insurance before renewing their policy, with Compare the Market customers potentially saving up to £516.
