New data from car insurance experts at MoneySuperMarket has revealed the average annual costs of insuring popular electric car models. The Electric Car Index shows that the Volkswagen ID 3 Family 204 is the cheapest electric car to insure, with an average yearly premium of £478, followed by the Volkswagen E-UP! and MINI Cooper S Level 3.
On the other hand, the Tesla Model Y - both standard and long-range versions - and the Mercedes EQC 400 AMG are among the priciest to insure, with an average annual premium of around £1,110. While compact cars like the Volkswagen E-UP! and Nissan Leaf are often cheaper to insure, these new figures indicate that SUVs and larger crossover-style electric vehicles are becoming more affordable.
The 2024 data reveals a shift in the market over the past six months, with the top 10 cheapest cars list predominantly made up of hatchbacks and compact city car models, while the entry of models such as the Skoda Enyaq and MG Motor MG4 indicates a change in trend.
| Rank | Make and Model | Average Annual Premium |
|---|---|---|
| 1 | Volkswagen ID 3 Family 204 | £478 |
| 2 | Volkswagen E-UP! | £487 |
| 3 | MINI Cooper S Level 3 | £488 |
| 4 | Vauxhall Mokka E Ultimate | £492 |
| 5 | Nissan Leaf Tekna (30kw) | £516 |
| 6 | MINI Cooper S Level 2 | £518 |
| 7 | Dacia Spring | £537 |
| 8 | Skoda Enyaq IV 60 | £543 |
| 9 | Volkswagen ID 3 Life 145 | £545 |
| 10 | MG Motor MG4 Trophy Long Range | £552 |
This table lists the ten electric vehicles with the cheapest average annual insurance premiums in the UK for 2025. Volkswagen dominates the entry-level segment with three models in the top ten. Premiums start under £500 per year for some of the most popular and practical electric vehicles, reflecting the growing trend of affordable EV insurance. MINI and Nissan also make strong showings in this list, ensuring drivers have access to models that balance style, range, and insurance cost.
Insurance costs vary widely due to vehicle price, performance, repair costs, and safety features. Electric car insurance often includes additional cover for charging equipment and battery protection. Prospective buyers should factor in insurance costs when choosing an EV, as more powerful or luxury models usually carry higher premiums. This list helps spotlight the more affordable options for those entering the electric market.
EV insurance costs vs UK car insurance average
MoneySuperMarket's figures show that the typical annual premium for an electric vehicle in 2025 stands at £587, while diesel cars cost £538 and petrol vehicles £501 to cover. The Volkswagen ID 3 boasts the most affordable premium at £478 - representing a 19% saving compared to the EV average - while the Volkswagen E-UP! costs £487, offering a 17% discount against typical electric car insurance rates.
Alicia Hempsted, car insurance expert at MoneySuperMarket, said: "Electric cars are often perceived as being more expensive to insure, but these rankings show that the gap is closing. Models like the Volkswagen ID 3, Volkswagen E-UP! And MINI Cooper S all have insurance costs below the national average, making them attractive choices for drivers looking to switch to an EV without high running costs.
"Additionally, insurance costs overall have declined this year, with the average insurance premiums for electric vehicles also following this trend – down by £137 from an average of £724 as reported in our last EV Index, putting EVs almost in line with petrol and diesel vehicles."
What makes EVs traditionally pricier to insure?
Historically electric vehicles have consistently commanded higher insurance premiums than petrol or diesel alternatives. Research from Thatcham revealed that insurance claims cost 25% more for EVs compared to conventional fuel cars - with repair times stretching 14% longer for electric motors.
Multiple factors contribute to the elevated insurance costs for electric vehicles:
Restricted claims information: Insurers lack comprehensive data on repair, replacement and write-off expenses for electric vehicles compared to conventional cars – and without sufficient information to refine their risk evaluations, insurance firms must incorporate more uncertain risks into their pricing.
Complicated and extended repairs: The intricacy of EV servicing and fewer qualified technicians leads to elevated insurance costs for electric vehicles.
Complete loss write-offs: Battery harm during crashes represents a major factor in EV write-offs, which drives up premiums.
Susceptible to keyless theft: Electric vehicles can be vulnerable to relay attacks through their keyless access systems.
The new figures reveal that EV insurance expenses are genuinely decreasing, with coverage costs for even the priciest models falling by nearly £200 compared to 2024 figures.
Alicia Hempsted said: "We expect to see electric car premiums continue to come down in price over the next few years for several reasons; as more people are purchasing and driving EVs, and making claims for them, insurers are getting more real-world claims data to use for their pricing models. Paired with improved technology that should reduce the risk of EVs being written off in accidents, as well as cheaper and quicker repair costs, these factors combined should help bring EV insurance costs in line with those for their petrol and diesel equivalents."