Martin Lewis offers advice about cancelling car insurance
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The reduction means the average premium for electric models now stands at £566 per year, down from £641 late last year. The cheapest possible electric caf premium is at £478 highlighting drivers can secure rates even cheaper if they look around.
Meanwhile, average insurance prices for petrol and diesel vehicles say at £611 per year.
The price reduction was partly caused by the fall in car insurance claims during the pandemic and multiple lockdowns.
The average cost of car insurance for electric models has fluctuated over the past two years.
Prices reached a peak of almost £700 in December 2019 but have dropped as low as £550 in February 2021.
Dan Hutson, head of motor insurance at Compare the Market said the higher costs for electric models have “often been a deterrent”.
However, the new research means electric cars could bring drivers “significant financial benefits”.
He said: “Electric vehicles are rapidly growing in popularity ahead of the Government’s target to phase out new petrol and diesel cars by 2030.
“The transition to electric vehicles will be vital in tackling climate change, but the higher upfront cost of these cars compared with traditional models has often been a deterrent for many motorists.
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“Drivers making the switch to greener vehicles will be glad that our research shows electric cars could bring significant financial as well as environmental benefits over time.
“If drivers are considering buying a new car, then an electric vehicle could be an appealing option considering the savings on insurance, fuel and tax.”
Data from the Society of Motor Manufacturers and Traders have shown sustainable growth in electric cars in 2021.
April data released just yesterday shows dales of battery-electric models were up by 566 percent compared to last year.
A total of 9,152 fully electric cars left the forecourt last month compared to just over 1,300 in April 2020.
So far in 2021, a total of 40,931 fully electric cars have left the forecourt compared with just 19,630 up to April 2020.
The 108.5 percent increase shows electric car sales are on the up as more drivers make the green switch.
Mr Hutson said electric car insurance would likely remain cheaper than petrol and diesel costs as more vehicles were produced.
He added electric models have “fewer complex moving parts” while battery packs were now “reasonably priced” as more were made.
He said: “Generally, electric cars have fewer complex moving parts that can be damaged compared with a traditional engine.
“Battery packs are reasonably well protected in accidents, reducing the risk of replacement.
“Electric cars are typically less likely to be stolen and more likely to be recovered when they are, due to their limited range and because charging them is relatively time-consuming.”
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