If you’re thinking about buying your first electric car, we know it can be daunting.
Aside from getting the best deal, there are some other factors to consider, such as getting your insurance sorted, arranging government grants and thinking about car tax.
Read on to find out the need-to-know information before you plug in and go!
Insurance
Getting insurance for plug-in vehicles is much easier than it used to be, now that insurance providers have caught up with how electric vehicles (EVs) work.
You may find that the industry generally places EVs in a higher insurance group rating than petrol or diesel cars of similar size. This is largely due to the lack of historical data from which insurance companies base their premiums.
There are plenty of specialist insurance providers, however, who will be able to offer a more tailored policy for green vehicles.
However, the most important variable in a car insurance quote of any kind is the driver – insurance companies will consider your risk profile before giving you a quote. The good news is, as an EV driver, you tend to be considered a safer and lower-risk driver, as a result of your eco-conscious decision to drive green.
Electric car tax
EV drivers are exempt from the following taxes in the UK:
Fuel duty
This includes hydrogen fuel cell vehicles.
Vehicle excise duty (VED)
Vehicles emitting up to 100g CO2/km currently pay no VED. This is due to change from 1st April 2017, when this will only apply to zero-emission vehicles.
Value added tax (VAT)
Charging a plug-in vehicle at home attracts only a 5% level of VAT, in comparison to 20% for road fuels.
Are you a business user? You’ll be pleased to know you can enjoy a wider range of tax benefits.
Plug-in Car or Van Grant
The UK government will also give you a grant towards the cost of a new electric car or van, provided it meets certain criteria.
The grant covers: * 35% of the cost of a car, up to a maximum of either £2,500 or £4,500 depending on the model. * 20% of the cost of a van, up to a maximum of £8,000.
It’s important to bear in mind that the ‘cost’ is the full purchase price you pay for the basic vehicle – including number plates, vehicle excise duty and VAT. Delivery charges, the first registration fee or any optional extras are not included.
Am I eligible?
The grant you can get depends on the type of car you wish to buy.
The government has four categories:
| Category | CO2 emissions | Zero emission range | Grant | Maximum grant |
|---|---|---|---|---|
| 1 | Under 50g/km | At least 70 miles | 35% of cost | £4,500 |
| 2 | Under 50g/km | 10 to 69 miles | 35% of cost | £2,500 |
| 3 | 50 to 75g/km | At least 20 miles | 35% of cost | £2,500 |
| Van | Under 75g/km | At least 10 miles | 20% of cost | £8,000 |
You can find the eligible vehicles on the UK Government website.
Exemptions
You cannot get a grant for:
- Second-hand vehicles.
- Category 2 or 3 vehicles with a recommended retail price of over £60,000 and over.
How to claim
There is no application process for getting a government grant for your EV; the grant will be automatically applied at point of purchase.
You may be asked to fill out a short questionnaire, but overall the process is straighforward.
Electric Vehicle Homecharge Scheme
The UK government also recognises the need to provide help with funding the install of charging points at home. As such, there is also a grant available for this.
It’s a pretty good one, too. The grant gives you a 75% contribution towards your home charge point up to the value of £500 (including VAT). You can apply for this grant once per household/eligible vehicle.
Am I eligible?
The list of eligible vehicles is the same for this grant as it is for the Plug-in Car and Van Grant. However, this grant also applies to second-hand EVs.
In order to take advantage of this grant, your home must have off-street parking facilities where a charge point can be installed.
Exemptions
You might not be eligible if:
- Your car isn’t eligible for the Plug-in Car or Van Grant
- You are not the primary user of the car
- You are leasing or hiring the car for less than 6 months
- You’re borrowing the car from friends or family
- You only have access to the car through a car club
- Your property is outside the UK
- You’ve claimed previously for EVHS or DRS
- You’re looking for a second charge point but only have one eligible vehicle
How to claim
This grant requires a little more effort than your purchase grant, but it’s not too difficult. All you need to do is to send evidence of ownership, lease or primary use information to the government.
If you are accepted for the grant, you’ll then need to sign an OLEV installation form confirming the install details.
A certified installer will then install the charging point at your home.