Electric vehicle insurance has risen by £313 year-on-year, according to new data. 

Annual car insurance cover for an electric vehicle as of November 2023 stands at £929 on average, compared with £616 during the same month in 2022. 

The rise in costs is, according to comparison site Compare the Market, in part due to insurers facing higher repair costs as the price of parts and labour continues to hike. Compare the Market also says that the hiring of specialist mechanics - who are certified to work on electric vehicles - could also be a key reason why insurance prices for battery electric cars are on the rise. 

However, the cost of insurance for petrol-powered cars has also risen by £337 over the past 12 months, increasing to an average of £980 as of November 2023. It means that, despite the hikes, insuring an electric vehicle can come in just over £50 cheaper than an average yearly premium for a petrol-powered car. 

According to Compare the Market, this price difference between insuring an electric or petrol-powered vehicle could be down to most electric vehicle drivers having access to off-street parking in order to charge their cars. 

Julie Daniels, motor insurance expert at Compare the Market, said: “EV owners will be concerned about the surging cost of car insurance. Drivers who’ve made the switch to an electric vehicle will be glad their choice of car is more environmentally friendly, and they are substantially cheaper to run than petrol-fuelled cars.”

Price differences could be down to most electric vehicle drivers having access to safer off-street parking