Electric vehicles (EVs) are now cheaper to insure than their petrol and diesel counterparts, according to analysis from heycar UK.

This is a result of a rising number of insurers entering the EV market, meaning they no longer carry a large price tag when it comes to insurance. heycar touted 2020 as a ‘tipping point’ as data now shows that EVs are consistently cheaper to insure.

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Annual insurance trend data from GoCompare found Nissan Leaf drivers paid on average £394 a year in 2020, while owners of the smaller and cheaper-to-buy Ford Fiesta were charged £550 for their yearly premiums across all petrol and diesel models.

This is compared to 2019, which saw Nissan Leaf drivers pay on average £424 for their yearly premiums, while drivers of the smaller Ford Fiesta paid £602.

This trend is also visible in data from MoneySuperMarket, with the electric Renault Zoe costing £451 to insure on average in Q2 2020. In comparison, a Vauxhall Corsa owner paid £776 – over 70% more than its electric rival.

The Tesla Model 3 is the most expensive model to insure based on data from MoneySuperMarket. However, it also followed the downward price trend seen elsewhere – falling 16% from £1,464 in 2019 to £1,223 in 2020.

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Industry data from the Society of Motor Manufacturers & Traders (SMMT) shows a significant increase in the number of new electric vehicles being sold in the UK, with a year-on-year increase of 186% in 2020.

Mat Moakes, chief executive of heycar, said: “It is generally assumed that the insurance price for electric vehicles greatly exceeds the price of its diesel and petrol counterparts and it certainly used to be that way. But our analysis shows that it is now the opposite as more insurers enter the EV market, which helps bring the price down.

“The cost of electric cars is finally getting cheaper, which is great news for people who drive EVs – and those looking to make the switch – to cut their carbon footprint as they can now do that without footing a huge insurance bill.

“Last year was definitely a tipping point, with insurance premiums for electric cars falling significantly in 2020.”

To calculate premiums, insurers consider several factors – including the value of the vehicle, the ease of finding a professional qualified to repair the model, and the cost and availability of parts. Levels of theft of a particular vehicle in your local area are also taken into account.