Electric vehicles promise lower running costs — but insurance can be a shock if you’re not prepared. From repair costs to battery value, here’s what’s driving premiums and how to keep them under control.
Why EV Insurance Costs More (For Now)
According to data from the Association of British Insurers (ABI), the average EV insurance premium in 2025 is around 18% higher than an equivalent petrol model. The main reasons are cost and complexity — not risk.
- Battery replacement costs: High-value batteries make repairs more expensive after accidents.
- Specialised repairs: Many body shops need EV-certified technicians and equipment, increasing labour rates.
- Parts availability: EV components can take longer to source, delaying repairs and inflating courtesy car costs.
As the market matures and parts become more common, insurers expect parity within three to five years.
Understanding Battery Coverage
Most EVs come with 8-year or 100,000-mile battery warranties, covering defects or performance degradation. However, insurance doesn’t automatically replace the battery after a collision unless it’s included in your comprehensive policy.
Some insurers now offer “battery assurance” add-ons covering post-impact checks, replacement, or degradation assessments. Always confirm if your policy treats the battery as part of the car or a separate component.
Key Factors Influencing EV Insurance Premiums
- Charger location: Insurers consider where and how you charge — home chargers reduce risk compared to public street setups.
- Vehicle software updates: Cars with over-the-air safety features and active monitoring (like Tesla or BYD) may get lower risk scores.
- Driving data: Telematics and usage-based policies can cut premiums by up to 20% for careful drivers.
Many insurers are now using AI and connected car data to personalise pricing for EVs, rewarding smooth, efficient driving rather than mileage alone.
How to Lower Your EV Insurance Premium
- Install an approved home charger: Secure, fixed-location charging often qualifies for a lower premium.
- Use an insurer specialising in EVs: Brands like Direct Line and Admiral now offer EV-specific policies with battery and cable cover.
- Compare quotes annually: The EV market evolves quickly — switching providers can save hundreds.
- Join loyalty or rewards schemes: Some apps, including ONEEV, reward good charging behaviour and partner benefits that lower your total cost of ownership.
What ONEEV Offers EV Owners
- Transparent charging costs: Real-time tariffs mean no billing surprises — helping drivers manage total EV expenses.
- Charging history & usage insights: Access your data anytime for insurance claims or reimbursement reports.
- Lifestyle rewards: Earn perks for regular use with ONEEV Rewards.
Whether it’s the cost of a charge or an insurance renewal, ONEEV helps you keep the numbers predictable. Learn more at ONEEV Insights.
FAQs
Are EVs more expensive to insure?
Currently, yes — mainly due to higher repair and battery costs. However, premiums are expected to level out as EV expertise grows across insurers.
Does insurance cover the EV battery?
Most comprehensive policies include battery coverage, but it’s worth confirming. Some insurers treat it separately or offer optional add-ons.
Can I reduce my premium with smart charging data?
Yes. Some telematics insurers reward drivers who charge efficiently or avoid excessive battery wear — improving risk scores over time.
