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Electric cars are more expensive to buy AND insure

Patrick Christys
Jun 25, 2019

Electric cars might make sense when it comes to protecting the environment, but not your wallet.

Eco-friendly motorists will spit their soya latte out when they realise they could be forced to pay up to 14% more to insure their beloved electric vehicle - that's enough to make you stop caring about the polar ice caps.

A new analysis shows that owners of battery-powered cars face an insurance bill up to £240-per- year more than those with similar combustion engine models. 


And it's not just the insurance premiums that are more expensive; electric vehicles are also around £10,000 more to buy than the average petrol car.

All these added costs are enough to make you wonder whether global warming might be such a bad thing after all.

According to Vantage Leasing, the two million motorists expected to own electric cars - which tend to be more expensive to purchase than traditional vehicles - by 2025 will be forking out a collective extra £231 million on insurance.

But there is the potential for your premium to be lower.

When they did the study, they used the example of a 35-year-old man living in Milton Keynes, who is a sales manager - poor bloke. I mean, if you're 35 and still stuck in Milton Keynes, no car in the world could bring joy to your miserable existence...

Anyway, quotes were based on a vehicle parked on driveway that was used for social and commuting, covering 12,000 miles per year with five years no claims. 

It found that a £27,690 VW e-Golf would cost someone living in Milton Keynes  £904 to insure. 

A £27,000 1.5-litre TSI petrol VW Golf was quoted at £710 - a massive £194 difference.

Why are electric cars more expensive to insure?

Higher retail prices are partly to blame for higher premiums, while the cost of more specialised parts and a lack of mechanics with the necessary skills and training may mean servicing and repair bills are bigger. 

There's also the higher cost of damage caused in a crash, especially if it results in battery harm and shifts the packs that are located under the floor or near the back of the chassis. 

The Institute of the Motor Industry (IMI) has been leading efforts to secure minimum training standards for technicians working at different levels on electric and hybrid vehicles, from basic maintenance to full diagnostic and repair.

It currently estimates that that more than eight in 10 independent garages are struggling to recruit technicians qualified to work on plug-in cars.

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