EV premiums tumble by £97, research says

By:

Add as a preferred source on Google
BT will this month launch its first electric vehicle (EV) charging unit built from a street cabinet traditionally used for broadband and phone cabling storage, in bid to resolve the UK's inadequate chargepoint infrastructure.
BT will this month launch its first electric vehicle (EV) charging unit built from a street cabinet traditionally used for broadband and phone cabling storage, in bid to resolve the UK's inadequate chargepoint infrastructure.

Insurance rates for electric vehicles (EV) have gone down by £97, from £753 to £656, while premiums for petrol and diesel slumped by £82 to £622 in the third quarter of 2021.

Research from price comparison website Comparethemarket has revealed that, despite the decline, the average annual insurance for EV is still £33 more expensive than for fuel and diesel vehicles.

“Electric cars are rapidly growing in popularity, making up around one in ten new car sales,” said Comparethemarket’s director Ursula Gibbs. “Drivers who’ve made the switch from a traditional car will be glad the cost of their insurance has tumbled.

“Electric vehicle owners will also benefit from substantial savings in fuel bills and tax – as well as doing their part for the environment.”

The recent plunges in car insurance rates that were seen in the last few months suggest firms are competing to win new customers ahead of the Financial Conduct Authority’s (FCA) introduction of new pricing rules.

The FCA’s new rules aim to stop firms price walking, requiring insurers to offer renewing customers a price no higher than what they would pay as a new customer.

“We are making the insurance market work better for millions of people. We will be watching closely to see how the market develops in the future and to ensure firms continue to deliver fairer value to consumers,” Sheldon Mills, FCA’s consumers and competition executive director, said in May.