Electric Car Insurance Has Fallen 20% Since 2023 — What It Means for Barnsley Drivers

One of the first things people ask us when they’re looking at an electric car is what it’s going to cost to insure. For a long time the honest answer was “more than the petrol equivalent, and nobody’s quite sure why.” That’s changing, and there are now numbers to prove it.

MoneySuperMarket has shared some of its own data with us, and it makes for encouraging reading. The average cost of insuring an electric vehicle has fallen by 20% since January 2023 — from £853.27 down to £682.59 in January 2026. That’s a saving of just over £170 a year, on a cost that used to be one of the main arguments against making the switch.

Here’s what’s behind it, and what it means if you’re weighing up an EV.

Why EV insurance is coming down

When electric cars first started arriving on forecourts in volume, insurers were pricing a lot of unknowns. There weren’t many EVs on the road, there was limited claims history to work from, and repairing a damaged battery pack was an expensive and specialist job. All of that gets loaded into a premium.

Four things have shifted since:

There are far more EVs on the road. More cars means more data, and more data means insurers can price risk properly rather than defensively. Guesswork is expensive for the customer.

The repair network has caught up. Bodyshops and technicians are now trained and equipped for high-voltage work in a way they simply weren’t in 2020. What used to be a specialist job sent halfway across the country is increasingly a local one.

Parts and battery costs have come down. Battery prices have fallen substantially, which matters enormously when the battery is the single most expensive component in the car.

Competition has increased. More insurers are willing to quote on EVs than a few years ago, and competition tends to push prices down.

Worth saying plainly: none of this is guaranteed to continue, and premiums vary hugely by driver, postcode and model. But the direction of travel over three years is clear.

Insurance isn’t the only cost that’s moved

Insurance was the sticking point for a lot of buyers, but it was never the whole picture. If you’re doing the sums on an EV, these are the other numbers worth knowing.

Home charging is still where the savings are. Overnight EV tariffs start from as little as 6.99p/kWh. For most drivers that works out dramatically cheaper per mile than filling up with petrol or diesel. The catch is that it depends on having somewhere to charge at home — which we’ll come back to.

Servicing costs less. An electric car has far fewer moving parts than a combustion engine. No clutch, no cambelt, no exhaust, no oil changes. Regenerative braking also means brake pads and discs tend to last considerably longer, because the motor does much of the slowing down. You still need an annual service and an MOT from year three, but there’s less to go wrong and less to replace.

There’s grant money available on new EVs. The Electric Car Grant offers discounts of up to £3,750 on eligible new zero-emission vehicles. If you’re a renter or a flat owner, the Chargepoint Grant covers up to 75% of the cost of installing a home charger, to a maximum of £500 — which addresses one of the more stubborn barriers for people without a driveway.

What to think about before you switch

We’d rather sell you the right car than the fashionable one, so here’s the other side.

Upfront cost is still higher. Depending on the model, an electric car can be pricier to buy than the petrol or diesel equivalent, even after the grants. Where the used market has helped enormously is that EVs coming off three and four year leases have taken their depreciation hit already — which is where the value tends to sit.

Public charging is not the same as home charging. There are now more than 120,000 public chargers across the UK and the network keeps growing, but coverage is uneven. London and the South East are far better served than parts of the North, the Midlands and rural areas, and ultra-rapid chargers can be harder to find. Prices vary a lot by provider, location and speed too, so charging away from home can cost several times what it costs on your driveway overnight.

For most people around Barnsley the practical question is simple: can you charge at home? If you’ve got a driveway and an off-peak tariff, the running-cost case is strong. If you’re relying entirely on public charging, the sums are much tighter and worth doing properly before you commit.

Check the insurance on the specific car. The 20% fall is an average across the market. Premiums still vary enormously between models — a heavy, fast performance EV will not be quoted like a small hatchback. Get a quote on the exact car before you buy, not after.

Frequently asked questions

Is electric car insurance still more expensive than petrol?

On average it can be, though the gap has narrowed considerably. MoneySuperMarket’s data shows EV premiums have fallen 20% since January 2023 while the wider market has moved differently. The only figure that matters to you is the one for your car, your postcode and your history.

Do I need a special insurance policy for an electric car?

No. Most mainstream insurers now cover EVs on standard policies. It’s worth checking what’s included for the battery — particularly if it’s leased separately rather than owned — and whether charging cables and home chargepoints are covered.

Does an EV cost less to service?

Generally yes. Fewer moving parts, no oil changes and less brake wear thanks to regenerative braking. It still needs servicing, and tyres can wear faster because EVs are heavier and deliver instant torque.

Can I get an electric car on finance?

Yes, in the same way as any other vehicle. We can talk you through the options and what’s realistic for your circumstances.

What if I can’t charge at home?

It’s still workable, but be honest with yourself about the cost and the convenience. If your only option is public rapid charging, a hybrid or an efficient petrol car may suit you better. We’ll tell you that if we think it’s the case.

Our take

The financial argument for an EV is better than it was three years ago, and insurance falling 20% is a meaningful part of that. It’s not the whole story — how and where you charge matters more than any single number on a spreadsheet — but one of the bigger objections has genuinely got smaller.

If you’re thinking about it, come and talk to us. We’ll go through the running costs on the specific car you’re interested in rather than the market average, and if an EV isn’t right for how you drive, we’ll say so.

Any Colour Car, Genn Lane, Barnsley S70 6TF. Sales 01226 574410 — hello@anycolourcar.com

Insurance figures supplied by MoneySuperMarket, based on their own data, January 2023 to January 2026. Grant, tariff and charging figures correct at time of writing. Insurance premiums vary by individual circumstances.

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