Does GAP Insurance Cost More for Electric Cars?

GAP Insurance does not always cost more for electric cars, but premiums can be higher because EVs tend to have higher purchase prices and, in some cases, depreciate faster than petrol or diesel cars. Insurers price GAP based on risk and settlement values, so electric cars can sometimes carry slightly higher premiums.

Why EVs can affect GAP Insurance cost · When costs are similar · Tips for EV owners · Related links

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Why EVs can affect GAP Insurance cost

Higher purchase prices: EVs often cost more upfront than petrol or diesel models.
Depreciation: Some electric cars lose value more quickly, especially older battery models with limited range. EV technology is evolving rapidly, which can impact the value of electric cars with older tech and range.
Repair costs: EVs can be more expensive to repair after an accident, raising the likelihood of being written off.

When GAP costs are similar

If the EV has a more stable resale value, premiums may be comparable to those of petrol or diesel cars.
Cheaper EVs with slower depreciation may fall into the same premium band as conventional cars.
Currently, pure EV's can see more expensive GAP Insurance costs. However, Petrol and Diesel Hybrids tend to see prices mirror standard cars with combustion engines.

Tips for EV owners

Match your GAP term to your finance or ownership expectations, as EV values may change quickly.
Check claim limits, as higher-value EVs may need a higher claim cap.
Consider Vehicle Replacement GAP if EV model prices are rising due to demand or supply shortages.

Total Loss GAP Tip: Recent claims and depreciation data shows EV's tend to depreciate more and therefore generate higher GAP Insurance claims. EV GAP Insurance costs can see higher premiums for EV's than some pertrol and diesel models at present.