The cost-of-living crisis is causing a drop in demand for electric vehicles as these cars are typically more expensive than petrol equivalents, according to Compare the Market comparison site.
Sales of new electric cars have declined by 17.1% year-on-year in November according to figures from the Society of Motor Manufacturers and Traders.
The lower average cost of insurance for an electric vehicle is possibly due to the profile of people who are likely to drive these vehicles. Due to the higher cost of purchasing an EV, these motorists tend to be older and therefore more experienced drivers. EV owners may also be more likely to have off-street parking to charge their vehicles overnight.
Drivers of both electric and petrol vehicles could save money on their car insurance by shopping before their policy is renewed. Motorists could save up to £516 on their car insurance through Compare the Market.
Julie Daniels 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.
“However, the significant upfront cost of buying an electric car and installing a home charging point along with the upcoming tax increases will prevent many drivers from being able to afford this option.”
