Electric Car Insurance - What you need to know with your new car lease

At e-car lease, our mission is to ensure that our personal, business and salary sacrifice customers receive the goods and services which are most suitable for their needs and requirements. You may have already seen throughout the website that we provide one of the only resources in the UK which has the capability to determine the suitability of an electric car for you or the business.

A significant part of this process includes us identifying key aspects of both the vehicle and the finance product we offer (contract hire / leasing). In particular, you will find some incredibly insightful components on each EV, with elements (like the below) set out for your review:

• Real-world Range;
• Battery and Plug-Types;
• Charge Times (AC and DC);
• Charge Point Locations;
• Company Car Tax Calculations (BCH and Sal Sac only);
• Charging Costs and Cost per Mile;
• Performance; and
• Vehicle Value (P11d).  

Much of this is summarised in our innovative EVC™ which accompanies each of our quotations. This succinct document has been designed by our team exclusively for all of our e-car lease customers. But where this document really helps is with introducing you to the 3rd parties who are helping to make the EV lifestyle as robust and seamless as possible, with introduction for charge point location / payments, charge point price comparisons and, coming soon, the best electric car insurance solutions.

How do I insure my electric car?

To be clear, the automotive world has very much caught up with the EV transition. Historically, there was a concern with some insurance companies unable to locate or properly insure the swathe of new vehicles arriving into the UK. But at 2024, the market has matured quite considerably so that getting an insurance quote on your EV is as easy as any combustion vehicle.

If you are a personal contract hire customer, or a business driver insuring the vehicle yourself, you simply need to utilise an insurance policy with your existing provider or head online to one of the major price comparison websites. Very soon, we will be working with an insurance partner to help our individual customers gain access to comprehensive and cost-effective motor insurance solutions.

For our business customers, running a fleet insurance policy is more detailed and requires further investigation; many of our business customers use an insurance broker to help secure the best solution for them and the drivers. Please note that some finance companies we work alongside may be able to offer comprehensive insurance packages but this is now a rare occurrence.

What insurance do I need for an electric car lease?

As a broker we work alongside a select number of finance companies who provide finance solutions for our customers. While we understand there are the three insurance covers below, for a lease you must ensure that fully-comprehensive insurance is procured for the lessee (person who is noted on the lease) and any drivers. Our finance companies will use the MID and can terminate the lease if these conditions are not adhered to.

• Fully-Comp - when you use fully-comprehensive insurance this is the highest cover level. And will include protection against damage, repairs, medical expenses, theft and fires. This also includes any damage caused to 3rd parties;

• 3rd party fire and theft - this level of cover will protect other people and their vehicles. Your vehicle is also covered for theft or damage by fire; and

• 3rd party - the standard minimum level of insurance in the UK, this level of cover will protect other people and their vehicles. It will not include you and your vehicle.  

How much is it to insure an electric car?

Rising costs in the UK have not excluded the motor insurance market. Much has been identified in 2024 which suggest that complaints are increasing with customers alleging the expense of insurance is not compatible with the cost of living.

Indeed the FCA is now investigating this further to headlines of average premiums of over £1000. The cost of insuring an electric car vs a combustion car has also been in the headlines, with EVs generally more expensive to insure compared to petrol and diesel equivalents. Some of this is attributed to the difficulty in procuring parts in the repair process (as well as the time involved).

But with a move toward more autonomous vehicles and increasing safety features, we may see the cost for EVs reduce to even lower levels than their combustion counterparts. There are now specialised and dedicated insurance companies who work in the EV sector.

What other features should I look for with electric car insurance?

In addition to the fully-comprehensive policy, we are seeing insurance companies offer some additional benefits which help an EV driver enjoy their vehicle to the fullest. These include facets like:

• Personal injury cover;
• Battery cover - to insure against battery damage, fire and theft; 
• Charging Equipment - to insure against damage to your charging cables;
• Wallbox cover - to insure against damage / replacement of any dedicated charging infrastructure; and   
• Out of charge recovery - if your EV runs out of charge, roadside assistance will be available.  

What details do I need to provide to get an EV insurance quote?

While each insurer can be slightly different, most will request details relating to: 

• The vehicle registration (or vehicle details if this has not been registered);  
• Your full address and postcode;
• Your driving licence details;
• The number of years of No-Claims Discount (NCD); and
• Any claims or convictions.