The numbers are clear; there's more demand than ever for electric cars. According to Zapmap, at the end of June 2025 there were over 1.5million registered electric cars and vehicles (EV) in the UK. And the number grows every year.
With fluctuating fuel prices in recent years, and the environmental damage caused by burning petrol and diesel, electric cars are generally seen as a more affordable-to-run option and a more responsible choice for the planet.
Plus, as drivers and companies become more eco-conscious, companies like Uber and Lyft are launching green initiatives to transition to all-electric fleets and keep up with expectations.
But with electric cars come new insurance policies that are typically different from their petrol or diesel counterparts.
In this article, we’ll look at whether electric cars are expensive to insure, what an electric car insurance policy covers, and whether EV insurance, specifically for private hire drivers, is getting cheaper.
What is Electric Car Insurance?
The main factors of insurance remain the same, no matter how a vehicle is powered. However, because of the difference in fuel, many electric car insurance policies have considerations specific to EVs.
Depending on the cover level, these can include protection for:
- Charging cables and batteries if kept in, on, or attached to your vehicle. Battery cover is included even if the battery is leased separately from the car itself, as is the case in some older EVs.
- If you choose a Comprehensive Plus policy, an electric or hybrid courtesy car may be provided – if one is available – while your EV is in for repair.
- Motor Legal Expenses Insurance cover, included with Comprehensive Plus policies, but available as an add-on, may also be helpful if, for example, somebody trips over a charging cable while it is plugged into your car.
Do I need EV insurance for private hire?
Yes. To drive legally on UK roads, you need to be covered by a motor insurance policy.
If you’re using your vehicle for private hire, courier or food delivery use, you need hire and reward or commercial motor insurance.
INSHUR EV private hire insurance is designed for EV owners who need specific electric car parts covered, like batteries and cables.
What goes into the price of EV insurance?
Depending on the risk level an insurer assigns to you, your insurance policy will either be below or above average or somewhere in between. Whether you have an EV or ICE vehicle, we consider risk factors such as the type of car, your usage, and your driving history.
So in that regard, the building blocks of what goes into a quote aren’t too different.
However, insurance quotes for electric cars can be higher than their ICE counterparts, partly due to electric car models being newer to the market. This means spare parts may not be as readily available, and EVs may also need specially trained mechanics to work on them.
We consider all of these factors when creating a private hire or Uber quote for you.
Why is electric car insurance more expensive than petrol or diesel cars?
Although EVs are becoming more popular, it’s still true that they can be more expensive to insure than fuel vehicles. Here’s a closer look at why:
- Parts and Repair Costs: Since EVs are newer to the market, their spare parts may not be as readily available or could be more specialized, leading to higher costs.
- Vehicle Value: The current market price of your electric car can significantly impact your insurance premium. Generally, EVs have a higher initial list price than comparable petrol or diesel cars, meaning it would cost more to replace a stolen or written-off electric vehicle.
- Specialised Mechanics: If your EV needs repairs, you might need to take it to an approved garage with mechanics who are trained to work on electric cars, which can sometimes come with an additional cost. Recovery costs can also push prices up, as many EVs cannot be towed if they break down.
- Speed Risk: As EVs accelerate faster than petrol or diesel engines, the way you drive could change, leading to more risk.
- Security and Safety Features: On the flip side, many modern EVs are equipped with advanced safety features like cameras and pedestrian detection software designed to prevent collisions. Any features that reduce the likelihood of a claim could work in your favour when it comes to insurance.
Is EV insurance getting cheaper?
Over time, it is likely that EV insurance will get cheaper. As more people make the switch to electric vehicles, there will be more providers like INSHUR providing specialist insurance for them. This leads to competition amongst providers wanting to provide the best price. In theory, this is good news for drivers, as they can make the most of any price cuts or deals.
Additionally, with more EVs comes a larger demand for repairs and people who know how to carry them out. As more mechanics and engineers become trained, repairs should become easier, reducing costs again.
Plus, with more models of EVs than ever before, the price of the vehicle itself will be reduced. In fact, in July 2025 the UK government announced a £650 million scheme to reduce the cost of purchasing an EV by up to £3,750.
Soon, EV insurance will be the norm, and not bespoke.
Spotlight: The UK’s most popular EVs
According to HeyCarUK, the UK’s best-selling EV is the Tesla Model Y - in fact, it’s topped the list since 2022.
Its long range makes it an attractive choice for drivers, especially as public charging can be hard to come by. Car review site WhatCar has a more in depth review on the Model Y, where they rate its practicality, price and ongoing support from Tesla.
But what about INSHUR drivers? Their needs are slightly different compared to the average driver. With more miles covered daily and passengers to carry, their vehicles generally get more usage than the average vehicle.
Amongst INSHUR drivers like you, the MG 5 Exclusive is the most popular insured EV. Tap here to read why CarWow gave it 6/10, praising its capacity and why it’s comfortable to drive around town.
In general, we’re able to lower the insurance cost of models like the MG 5 Exclusive because of their cheaper price point, their more generic parts, and their ease of repairs.
Conclusion
While electric vehicles are increasingly becoming the norm, private hire EV insurance comes with unique considerations. Factors like higher initial vehicle value, specialised parts and mechanics, and instant torque can influence premiums.
However, as the EV market matures and the UK government actively supports the transition to electric vehicles, EV insurance is expected to become more competitive and affordable. As more mechanics become trained and parts become readily available, the costs associated with EV repairs could decrease.
When it comes to insuring your electric vehicle, you need a policy that understands these specific needs, from battery cover to protection for charging cables. Don't let the evolving landscape of EV insurance slow you down.
Ready to insure your electric vehicle with a policy designed for you? Get a private hire or Uber EV quote with INSHUR today and drive with confidence.
Sources
Pod Point - Are EVs cheap to insure
John-Clark are EVs expensive to insure?
