Insurance for Your Electric, Hybrid or PHEV Vehicle

With the rise in the use of Electric Vehicles (EVs), many are curious about the difference in cost between petrol/diesel-driven vehicles, hybrids, and cars that are solely electric. Our environment is definitely a concern for most people. Many are looking to make the transition to get behind the wheel of cars like the Nissan Leaf or a Toyota Prius. But you may have questions about the differences between the different models of EV. Then when you purchase your car, how will insurance work? Is it the same as with petrol-fuelled vehicles? We aim to answer these questions by the time you hit the dealership to purchase your next vehicle.

What is the difference between an electric, hybrid car, and a plug-in hybrid vehicle(PHEV)?

Electric car – This type of vehicle runs solely on electric power. There is no alternative source of power.

Hybrid car – A hybrid receives its charge from a battery that is plugged in or recharged through driving as well as through regular petrol. It operates on the battery at slow speeds and petrol at high speeds.

Plug-in hybrid car – This type of vehicle is also a hybrid, the only difference is that it is constantly using both fuel sources. It charges from being plugged in or recharged as the car drives.

Does insurance cover differ between EVs and petrol-engine cars?

There is no difference in what the insurance policy covers for an EV or a petrol-engine car. However, the premium for an EV may differ from a petrol/diesel-engine car. 

All insurance policies cover a battery replacement if it is damaged due to an accident or fire, water immersion, natural disaster, malicious damage, or theft. They also cover the repair or replacement of the charger/charging cable that comes with your car from the manufacturer. So when it comes to terms of the cover, it is no different for different types of cars. 

However, if you have a permanently installed charging station attached to your home, and experience battery failure which causes a fire to your home, damage to your charging station and any associated damage to the home will be covered under your home insurance policy. The damage caused to your vehicle would still be covered under your car insurance policy.

Comparing insurance cover for your EV, hybrid or PHEV

When comparing your car insurance cover for EVs, you have three insurance options: Comprehensive, Third Party Fire and Theft, and Third-Party Property Damage. It is always best to read the policy thoroughly to ensure you receive the best vehicle cover.

Frequently asked questions about insurance for your electric, hybrid or plug-in hybird car

Is battery replacement covered on my insurance policy?

Your Comprehensive car insurance policy does not cover the replacement of your battery due to wear and tear. If your battery was damaged in a road collision, damaged in a fire or theft then any damage to your battery would be fixed or replaced as part of the claim.

Are breakdown or mechanical failure part of my cover?

Running out of fuel, a flat tire, or letting your car run out of charge is not covered under your car insurance policy. You can purchase Roadside assistance to help you out should you break down but mechanical failure is not insured under your standard vehicle insurance.

Agreed value vs. market value, which is the better cover for my electric vehicle?

If your claim is accepted, and depending on the cover type that is shown on your schedule, your insurer will pay either the agreed value or the market value for your vehicle.

An agreed value is where you agree the sum insured of your vehicle at the start of the insurance year. In the event of a total loss, your insurer will pay the agreed value that is noted on your schedule.

If you have insured your vehicle for market value, in the event of a total loss, your insurer will get a pre-accident/theft valuation and pay the value that your vehicle is worth at the time of the claim. You can obtain your own independent pre-accident/theft valuation on your vehicle at your own cost and the insurer can re-assess this revised settlement offer.

Am I covered at a public charging station?

Provided the damage to your vehicle occurs at a public charging station, you will be covered should an insured event occur.

Do electric vehicles cost more to insure?

When setting the rates, your insurance provider looks at many factors to set the pricing for your insurance. This means there may be a price difference between what your EV costs to insure in comparison to a petrol/diesel-fuelled car.

Check your quote online to see how much it will cost to insure your EV.

The information in this blog is of a general nature and does not constitute financial or other professional advice. Policy limits and exclusions apply - refer to the policy wording for full terms and conditions.