The average annual cost of insurance for electric cars is now cheaper than petrol or diesel cars, falling by £75 in the first quarter of 2021.
The average insurance premium for petrol and diesel cars for the first quarter of 2021 sits at £611, with a much lower cost of £478 for the cheapest electric car premium.
The report also showed that as well as car insurance premiums typically being lower for EVs, road tax is also cheaper, with cars that do not emit carbon and costing less than £40,000 not needing to pay.
Based on the findings, a driver could save up to £133 depending on individual driving history and experience if they switched to the cheapest premium for an EV from the average premium on an internal combustion vehicle.
Dan Hutson, Head of Motor Insurance at Compare The Market, said: “EVs are rapidly growing in popularity ahead of the government’s target to phase out new petrol and diesel cars by 2030.
“The transition to EVs 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. 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.”