The reduction means the average premium for electric models now stands at £566 per year, down from £641 late last year. The cheapest possible electric caf premium is at £478 highlighting drivers can secure rates even cheaper if they look around.
“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.”
Data from the Society of Motor Manufacturers and Traders have shown sustainable growth in electric cars in 2021.
April data released just yesterday shows dales of battery-electric models were up by 566 percent compared to last year.
A total of 9,152 fully electric cars left the forecourt last month compared to just over 1,300 in April 2020.
So far in 2021, a total of 40,931 fully electric cars have left the forecourt compared with just 19,630 up to April 2020.
The 108.5 percent increase shows electric car sales are on the up as more drivers make the green switch.
Mr Hutson said electric car insurance would likely remain cheaper than petrol and diesel costs as more vehicles were produced.
He added electric models have “fewer complex moving parts” while battery packs were now “reasonably priced” as more were made.
He said: “Generally, electric cars have fewer complex moving parts that can be damaged compared with a traditional engine.
“Battery packs are reasonably well protected in accidents, reducing the risk of replacement.
“Electric cars are typically less likely to be stolen and more likely to be recovered when they are, due to their limited range and because charging them is relatively time-consuming.”