EV insurance: the grant-eligible cars with the lowest premiums

After the launch of the Electric Car Grant, new data has revealed the qualifying models with the cheapest and most expensive insurance bills.

Surprisingly, large van-based people carriers were among some of the most affordable while mainstream hatchbacks were among the costliest to cover, according to research by MoneySuperMarket.

The comparison service looked at 24 of the most popular models which qualify for the Government’s Electric Car Grant and compared annual average insurance premiums. It found that the Ford E-Tourneo Courier was the cheapest ECG-eligible car to insure, with an average cost of £309 per year. In contrast, the Peugeot E-208 was the most expensive, at £826 per year.

The Peugeot E-Rifter and related Citroen E-Berlingo, which like the Ford are van-based people carriers, were also among the 10 cheapest EVs to insure, with premiums under £450. At the opposite end of the scale, the Nissan Ariya SUV, Citroen E-C4 hatchback and larger Citroen E-Spacetourer MPV were among the most expensive, with premiums in excess of £660 per year.

The ECG was launched to encourage more EV sales and offers discounts of £1,500 or £3,750 on new cars priced below £37,000. While the grant cuts the upfront cost, insurance accounts for a massive proportion of any car’s annual running costs. MoneySuperMarket’s car insurance expert Alicia Hempsted urged drivers to consider long-term costs alongside the upfront price of a new car.

She commented: “Government-backed schemes are helping consumers make the switch to electric cars, however, drivers need to consider the running costs involved with an EV as well.
“Our data shows we shouldn’t assume that certain vehicles, such as hatchbacks, will be cheaper to run than others. If you’re considering going electric, it’s worth comparing insurance costs across a range of models, including those that can be purchased via grant schemes.”

Hempsted added that the popularity of smaller hatchbacks among younger and less experienced drivers could partly explain the higher average insurance costs due to their higher risk profile.