The 10 electric cars with the cheapest premiums

Want to know which electric cars are cheapest to insure?

Data gathered last month by a major insurance provider has revealed which battery-powered models have the lowest premiums of all.

Admiral says the average quote for fully-comprehensive insurance across all cars of varying fuel types was in March was £807.92.

It has listed the top 10 EVs with the lowest annual cover costs – with all of them undercutting the overall average – and the their insurance costs don’t just reflect how expensive the cars are.

Hpwever, electric cars are generally being pricier to insure than conventional petrol and diesel alternatives – we explain why this is the case below.

THE 10 ELECTRIC CARS THAT COST THE LEAST TO INSURE

10. Polestar 2 – £707

Price: from £44,950

The average quoted premium for a Polestar 2 in March was £707, according to insurer Admiral

The 2 is Polestar’s first mainstream family electric car, with the spin-off brand of Volvo launching the EV in 2020.

Admiral says it is the tenth most affordable battery model to insure, though the average quoted premium in March of £707 is £100 less than the average quote given to drivers of all cars last month.

The Polestar itself isn’t cheap, though. The entry ‘Standard range’ version with one electric motor costing £44,950. Upgrade to the Long Range dual motor variant with the Performance pack included and this bumps the price up to £57,950.

Full-battery range is dependent on which Polestar 2 you choose, with ‘official’ distances between charges of 299 miles to 406 miles.

9. Kia EV6 – £680

Price: from £45,245

The Kia EV6 isn’t what you’d call cheap. It might have won the 2022 European Car of the Year award but the cheapest version will set you back over £45k – and then £680-a-year in cover

Named 2022 European Car of the Year, the Kia EV6 is one electric vehicle that comes with plenty of kudos.

Admiral says the average insurance quote for one last month was £680, which is £127 less than the average across all vehicle and fuel types.

Prices for the EV6 start from £45,245 and extend to £57,145 for the most expensive GT-Line S with the bigger 77.4kWh battery and the addition of a heat pump for use in colder months to ensure the battery works as efficiently as possible in colder climates.

Range for the EV6 is up to 328 miles.

8. BMW i3 – £670

Price: N/A

The i3 is one of the most distinctive EVs to enter the market. Production of the compact BMW ended last year, though average annual insurance quotes for this model in March was £670

BMW confirmed last year that production of its smallest, cheapest and first-ever electric vehicle, the i3, had ended having built just over 250,000 examples.

Admiral says insurance quotes ran on this vehicle – which originally hit the market in 2013 as a range-extending hybrid or full-EV – came to an average of £670.

With rear-hinged doors, a carbon fibre construction, recycled cabin materials and a completely unique shape, the i3 will go down as one of the most interesting early mainstream EVs.

It has now been replaced by the iX1 – a much larger, conventional SUV shaped model, which is priced from £64,165, which is a significant mark up on the i3.

7. Kia e-Niro/Niro EV – £661

Price: from £37,295

Kia recently launched a new electric Niro, called the Niro EV rather than e-Niro. Average quotes for fully-comp cover across both versions in March was £661, according to Admiral

Kia has recently replaced the first-generation e-Niro electric SUV with the new Niro EV, slightly changing the car’s name in the process.

Based on the average quotes given to owners in March, Admiral says this model will cost drivers £661 a year for fully-comprehensive cover.

The Korean car brand sold 11,197 examples of the former e-Niro and new Niro EV in 2022, making it the third most-bought electric model behind Tesla’s Model Y and Model 3.

It is currently available in the UK in three different trim grades from 2 to 4. The ‘3’ and ‘4’ models are also sold with the option of an additional heat pump so they perform better in colder conditions. However, the version taking second spot in this list is the £37,295 ‘2’. It has a range of 285 miles.

6. Nissan Leaf – £643

Price: from £28.995

Average premiums for a Nissan Leaf are £643, which is surprisingly high given that it has been on sale for a long time, is produced in the UK and replacement parts should be easy to come by

Nissan’s Leaf is one of the longest-running electric cars on the market and most popular. Introduced in 2011, with this second-generation version on sale since 2017, it has been treated to a number of updates and upgrades during its decade of existence. Last year, it was the fifth best-selling EV, racking up 9,178 registrations in the UK.

With it being so popular, produced in the UK and there being so many on the road, we are surprised to see it as low as sixth in this list, with average annual premiums of £643.

The ‘e+’ versions of the Sunderland-assembled electric family hatchback have been on sale since 2019, offering a larger 59kWh battery with a longer range. Its official driving distance between charges is 239 miles.

For those looking to spend a little less, the Leaf Acenta with a smaller 39kWh battery is currently one of the only new electric cars available for less than £30,000 (starting from £28,995), though the official range is just 168 miles.

Five reasons EVs cost more to insure than other cars

Admiral says that, on the whole, the average premium for EVs is slightly higher than for internal combustion engine cars – and there are various reasons for why this is currently the case…

1. EVs are generally newer cars

‘This is because they are generally newer vehicles and there are fewer second-hand models on the market,’ the insurer explains.

This means spare parts may not be as readily available as they are for petrol and diesel equivalents – and the components can be more expensive to source.

2. EVs aren’t cheap

The price of a vehicle is one of the biggest factors insurers consider.

And with EVs still at a significant premium over internal combustion engine cars, this is one of the biggest factors making them more expensive to insure.

3. EVs are more likely to be written off, even after minor collisions, report says

A recent Reuters report also highlighted an issue around the volume of electric cars being written off despite being involved in minor accidents.

This is often as a result of batteries being damaged, even in the smallest shunt.

With battery packs of the latest cars built into the chassis, this makes them susceptible to damage when there’s an impact from any direction.

The news agency said insurance companies are increasingly being left with little to no choice but to permanently take the cars off the road after minor collisions, which in turn is pushing premiums on electric vehicles higher.

The report warns of scratched and mildly damaged battery packs ‘piling up in scrapyards in some countries’ with experts saying batteries in expensive Tesla Y SUVs have ‘zero reparability’ because they are a structural part of the car.

4. EV-specific insurance policies cover more than just the car

Some insurers also offer EV-specific policies that can push average premiums higher.

This is because they provide extra cover for items such as charging cables, adaptors and wall boxes for accidental damage, fire, and theft.

EV insurance policies may also be pricier because they feature battery cover under the same provisions, even if the battery is leased separately from the car itself.

Insurers can also cover over-the-air (OTA) software updates, and if you choose an optional hire car benefit, an electric or hybrid courtesy car may be provided – if one is available – while your EV is in for repair.

Legal cover may also be helpful if, for example, somebody trips over a charging cable while it is plugged into your car.

5. Only EV-trained technicians can work on them, which can make them more expensive to fix

Drivers also need to take into account that EVs need trained technicians to work on them, which could also be impacting premiums.

According to the latest Institute of the Motor Industry update, over 14,800 mechanics undertook the training and qualifications required to obtain the IMI TechSafe EV standard last year.

This boosted the total number of qualified technicians able to safely work on electric vehicles in the UK to 39,000 by the end of last year.

The IMI’s latest analysis predicts that by 2030, 103,000 IMI TechSafe qualified technicians will be needed to work with electric vehicles, increasing to 124,000 by 2032.

However, the adjusted forecast warns of a potential shortfall of 4,500 qualified technicians by 2029, increasing to a massive skills gap of 16,000 by 2032.

5. MG4 EV – £590

Price: from £26,995

At a price of less than £27,000, the MG4 is one of the cheapest new electric cars on the market today. That would make you think it’s among the least expensive to insure, but it only places fifth in Admiral’s list

One of the newest kids on the block to make this countdown is the new MG4 EV. Admiral says in March it quoted drivers an average of £590 for annual fully-comprehensive cover.

The practical electric hatchback only hit the market late last year but is already proving popular – and much of that is down to its modest asking price.

The cheapest version starts from £26,995 but the standard ‘SE’ model features a smaller 51kWh battery with a maximum official range of 218 miles.

It’s the mid-spec ‘SE Long Range’ that will go the furthest on a single charge – an impressive 281 miles. And what makes it a real contender is the fact this variant prices in at under £30,000, with an RRP of £29,495.

4. MG ZS EV – £588

Price: from £30,495

The MG ZS EV is the least expensive electric SUV on the market. It’s also among the cheapest EVs to insure, with Admiral quoting drivers in March an average of £588 for cover for a year

The second MG Motor model to make our countdown is the ZS EV – the brand’s only electric SUV.

March data shows that Admiral quoted owners of the ZS EV an average of £588 for insurance cover for a year.

The ZS EV is sold in four different specifications, with prices starting from £30,495 and up to £35,495. They also offer different battery ranges, with the least expensive model (‘SE’ trim) offering 198 miles and the SE Long Range here with 273 miles officially.

What the car lacks in flair it makes up for in practicality and relative affordability. In fact, it’s the cheapest electric SUV model on the market.

3. Mini Electric – £576

Price: from £32,550

The Mini Electric is the third least expensive EV to insure, according to Admiral. However, with a battery range of just 145 miles, it’s not the most practical electric car on the market

The current Mini Electric is nearing the end of its lifecycle as the brand prepares for production of the next-generation model, which will be built in China.

The average premium price quoted by Admiral for March was £576 for fully-comprehensive cover on the Mini, which is the third least expensive of all EVs.

The existing model is currently made at Plant Oxford and was the sixth most popular EV in Britain last year with some 7,425 examples sold.

While prices start from what looks like a relatively reasonable £32,500, the Mini has a full battery range of just 140 to 145 miles. That’s up to 68 miles less than the MG4, which is bigger and cheaper to buy.

2. Volkswagen ID.3 – £532

Price: from £39,425

Admiral says the average premium for a VW ID.3 is £532, making this the second least expensive EV to insure

Volkswagen has only recently taken the wraps off its refreshed version of the ID.3, but as it currently stands today the one that’s in showrooms (with a year-long waiting list) is the pre-facelift car.

Admiral says the average quote for motor insurance cover on the ID.3 in March was £532.

The cheapest version of the ID.3 currently sold to UK customers is the Business trim level with a 58kWh battery offering a range of 264 miles.

For those willing to crash through the £40,000 ceiling the ID.3 Tour with a 77kWh battery has the longest range of all of 339 miles, though it is priced at an eye-watering £47,470. Considering you can buy a 1.0-litre petrol VW Golf Life for £25,765 in showrooms, it means there’s a £20k mark-up for the longest-range electric alternative. That extra cost buys a lot of petrol.

1. Renault Zoe – £528

Price: from £29,995

Average quoted premiums for the Renault Zoe in March were £528. Admiral says it is the least expensive electric car to cover

If a small electric run-around is what you want, the Renault Zoe is an ideal candidate – especially given the range improvements made since the 2019 model facelift.

Being one of the smallest EVs in showrooms, it shouldn’t be too much of a surprise to see Admiral quoting the lowest insurance premiums for any battery car, averaging £528 in March.

With a 52kWh battery, the Zoe E-Tech can go for a claimed 239 miles between charges – which Renault says is enough to travel from London to Birmingham and back without needing to plug in.

With prices starting at £29,995, there are cheaper – and bigger – battery models than this on sale today.

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