Institute for Energy Research: UK Insurance Premiums for EVs Are Double Those for Gasoline Vehicles

[Note: The Institute for Energy Research (IER) is a think tank based in Washington, DC. IER has a heavy focus on US and international energy policies and their impacts on the economy and business. The IER staff includes some of the keenest minds in the business.]

Data from the UK shows that the typical insurance premium for electric vehicles increased to £1,344 ($1707), an increase of 50 percent compared with a year earlier, and double the cost of insurance for combustion engine cars due to higher cost of repairs for electric models. While insurance premiums for all types of cars increased last year, the increase for electric vehicles was bigger both proportionally and in real terms. The cost of insuring a typical internal combustion engine (ICE) car increased from £514 ($653) to £676 ($859), by 31 percent, but was still £668 ($849) less expensive per year than insuring an electric car. The UK has a higher EV ownership percentage than the United States, and therefore its experience may presage that of U.S. owners.