Grant-Eligible Cars With Lowest Insurance Premiums

MoneySuperMarket has released data showing which Electric Car Grant-eligible vehicles carry the cheapest and most expensive insurance premiums. The findings reveal some patterns that might catch buyers off guard.

Van-based people carriers dominated the most affordable end of the spectrum. Meanwhile, several mainstream hatchbacks ranked among the costliest to insure.

The comparison service analyzed 24 popular models that qualify for the government’s Electric Car Grant program. They calculated average annual insurance premiums across all eligible vehicles.

Ford’s E-Tourneo Courier emerged as the cheapest ECG-eligible car to insure at £309 per year.

The Peugeot E-208 sits at the opposite end – it’s the most expensive grant-eligible EV to insure at £826 annually.

Van-Based Models Lead Affordability Rankings

The Peugeot E-Rifter and Citroen E-Berlingo joined Ford’s offering among the most affordable options. All three are van-based people carriers with premiums under £450 per year.

At the expensive end, the Nissan Ariya SUV, Citroen E-C4 hatchback, and Citroen E-Spacetourer MPV all exceeded £660 annually.

The Electric Car Grant launched to boost EV adoption by offering £1,500 or £3,750 discounts on new cars priced below £37,000. While the grant reduces upfront costs, insurance represents a significant portion of any vehicle’s annual running expenses.

Government-backed schemes are helping consumers make the switch to electric cars, however, drivers need to consider the running costs involved with an EV as well. Our data shows we shouldn’t assume that certain vehicles, such as hatchbacks, will be cheaper to run than others.

Alicia Hempsted, MoneySuperMarket’s car insurance expert, emphasized the importance of comparing insurance costs across different models when considering grant-eligible vehicles.

Driver Demographics Influence Premium Costs

The higher insurance costs for smaller hatchbacks likely reflect their popularity among younger drivers. Less experienced drivers typically face higher premiums due to increased risk profiles.

Hempsted noted this demographic factor helps explain why some traditionally “economical” vehicle types show up with higher insurance bills.

If you’re considering going electric, it’s worth comparing insurance costs across a range of models, including those that can be purchased via grant schemes.

The research highlights how insurance premiums can vary dramatically – even among vehicles in the same price bracket or government incentive program.

Complete Rankings: Cheapest to Most Expensive

The data shows a £517 annual difference between the cheapest and most expensive grant-eligible models – enough to influence total cost of ownership calculations for potential EV buyers.