CoverMapElectric vans are now a real slice of the market
SMMT figures reported by Motor Transport show 30,169 new battery electric vans were registered in the UK in 2025. That was 9.5% of a light commercial vehicle market of 315,422, which shrank 10.3% overall. Defaqto, quoted by Insurance Business in June 2026, said electric vans made up 9.4% of the market in late 2025, a share “beginning to challenge pricing as insurers grapple with higher repair costs and specialist parts requirements associated with electric powertrains”.
The share kept rising in 2026. SMMT figures reported by AM Online show battery electric vans took 9.9% of new van registrations in the first half of 2026, up from 8.6% a year earlier, and 11.5% in June 2026 alone. That is still well short of the 24% zero emission target for vans in 2026; SMMT estimated electric vans would need around 40% of registrations for the rest of the year to meet it.
Is electric van insurance more expensive?
Usually, yes. MoneyExpert gives these reasons:
- Higher value. Electric vans cost more to buy, or to replace, than comparable diesel and petrol vans.
- Expensive batteries. Replacing a battery is costly.
- Specialist repairs. You may need a specialist repairer.
- Parts. Parts can be harder to source.
- Fire risk. Electric vans carry their own hazards, such as electrical fires.
MoneyExpert also says more mainstream insurers now offer electric van cover.
How big is the price gap?
We did not find any 2025 or 2026 study comparing electric and diesel van premiums. The most recent like-for-like test we found is from November 2023, so treat it as a rough guide only. Van leasing firm Vanarama ran quotes using the same driver profile on a diesel Ford Transit Custom and an electric Vauxhall Vivaro-e, changing only the job title.
| Vanarama test (Nov 2023) | Result |
|---|---|
| Highest diesel quote | £837.28 |
| Highest electric quote | £1,159.91 |
| Largest gap between electric and diesel (by trade) | £386.87, up to 38.5% more |
| Smallest gap (by trade) | £224.70 |
Source: Vanarama via Wheels Alive, November 2023. Van prices have moved since; see current averages in our van insurance guide.
In that test the electric van cost more to insure for every trade. Since then, overall van prices have fallen: Defaqto says they were 11% lower in August 2026 than a year earlier. Whether the electric gap has narrowed is not covered by any recent data we found, so the only reliable answer is to get quotes for the exact model you are considering.
What electric van insurance covers
There is no separate legal category of “electric van insurance”. You need the same minimum cover as any van, and the same class of use. The differences are in how a policy handles electric-only parts and risks. Admiral’s electric van product page, checked October 2026, is one example of what to look for:
- Battery: “Your electric or hybrid batteries are covered against damage, fire and theft.”
- Charging cables and home chargers: covered if they are damaged or stolen.
- Running out of charge: Admiral says it will recover an electric van that runs out of battery on the road.
Even within one insurer, cover varies. Admiral says mild hybrids get battery cover only, and plug-in hybrids get battery and cable cover but not out-of-charge recovery. Benefits also depend on the policy tier. Read the policy wording rather than assuming another insurer works the same way.
Owned vs leased batteries
Some electric vans have been sold with the battery leased separately. MoneyExpert gives Renault as an example and explains that if the van is stolen or written off, part of the insurance payout goes to the battery’s owner. It also warns that some policies won’t cover electric vans with leased batteries at all, so you must tell the insurer if your battery is leased.
Questions to ask when comparing electric van quotes
- Is the battery owned or leased? If leased, will the insurer cover it, and who receives the payout if the van is written off?
- What battery damage is covered? Check whether cover includes accidental damage, fire and theft of the battery.
- Are cables and a home charger included, or do they need separate cover?
- What happens if you run out of charge? Is recovery included, and does it apply to your type of vehicle?
- Who repairs the van? MoneyExpert notes electric vans may need specialist repairers and parts can be harder to source, so ask how repairs are handled.
- Do you need a courtesy van? Confused.com and Compare the Market list it as an add-on. If your van is your income, a long repair could matter more than a small difference in premium.
Driving an electric van on a car licence: the 4,250kg rule
A category B (car) licence now allows heavier zero emission vehicles than petrol or diesel ones. GOV.UK guidance, updated on 10 June 2025, says:
- Category B licence holders can drive zero emission vehicles (electric or hydrogen) up to 4,250kg maximum authorised mass (MAM), compared with 3,500kg for petrol and diesel.
- This covers vehicles designed to carry up to 8 passengers, including vans and small trucks.
- No extra training is required, though GOV.UK recommends getting familiar with the controls and practising in a safe, controlled environment first.
- You can tow a trailer as long as the van and trailer together don’t exceed 7,000kg MAM.
- The guidance applies to England, Scotland and Wales.
- It only applies to zero emission vehicles, not other alternatively fuelled vans.
This is a recent change. Before 10 June 2025, Fleet World reports, drivers of alternatively fuelled vans between 3.5 and 4.25 tonnes had to complete five hours of extra training. GOV.UK’s earlier consultation also notes the old rules limited these vans to carrying goods and banned towing. Fleet World adds that drivers who passed their test before 1 January 1997 can drive combinations up to 8.25 tonnes.
For insurance, the point is simple: give the insurer the exact model and weight. If you are a new driver weighing up a heavier electric van, our young driver van insurance guide covers age limits and costs.
The Plug-in Van Grant
The grant lowers the purchase price, not your insurance, but it affects the overall cost of switching. A GOV.UK press release from 18 August 2025 confirmed:
| Vehicle | Grant |
|---|---|
| Small vans | Up to £2,500 |
| Large vans | Up to £5,000 |
| Small trucks | Up to £16,000 |
| Large trucks | Up to £25,000 |
Source: GOV.UK press release, 18 August 2025. Grant levels for 2026–27 were to be confirmed; check GOV.UK before you order.
The government said the scheme would run until at least 2027. In the same announcement it claimed switching to electric could save businesses more than £2,800 a year on fuel.
Running electric vans in a business
If you are adding electric vans to an existing set of diesel vans, a single fleet policy can cover mixed vehicle types on one renewal date. Our fleet van insurance guide explains minimum fleet sizes and any-driver cover. Whatever the fuel, the class of use still has to match the work you do; delivery drivers in particular need hire-and-reward cover, explained in our courier van insurance guide.
Frequently Asked Questions
Is electric van insurance more expensive than diesel?
Usually. MoneyExpert says electric vans cost more to buy and repair, batteries are expensive and specialist repairers may be needed. We found no 2025 or 2026 study measuring the gap; a Vanarama test from November 2023 found electric quotes up to 38.5% higher.
Can I drive a 4.25 tonne electric van on a car licence?
Yes, if it is zero emission. GOV.UK guidance updated on 10 June 2025 says category B licence holders can drive electric or hydrogen vehicles up to 4,250kg MAM without extra training, in England, Scotland and Wales.
Does van insurance cover the battery?
It depends on the policy. Admiral, for example, says its electric van policies cover batteries against damage, fire and theft. If your battery is leased, MoneyExpert warns some policies won't cover it, so tell your insurer.
Are charging cables covered by electric van insurance?
Some policies include them. Admiral says it covers charging cables and home charging equipment if they are damaged or stolen. Check the policy wording, as cover differs between insurers and tiers.
How much is the Plug-in Van Grant?
A GOV.UK press release from August 2025 confirmed up to £2,500 for small vans and up to £5,000 for large vans, with the scheme running until at least 2027. Check GOV.UK for current rates.
Can I tow with an electric van on a car licence?
GOV.UK says you can tow as long as the combined MAM of the zero emission vehicle and trailer doesn't exceed 7,000kg.
Sources
- GOV.UK – Driving an electric or hydrogen-powered vehicle (10 Jun 2025)
- GOV.UK – Zero emission vans regulatory flexibility consultation (Dec 2024)
- GOV.UK – Government discounts for electric vans and trucks extended (18 Aug 2025)
- GOV.UK – Driving licence categories
- Fleet World – New licence rules for heavier electric vans (28 May 2025)
- Motor Transport – Van market 2025, SMMT figures (Jan 2026)
- AM Online – Van market grows but electric uptake trails target (SMMT, H1 2026)
- Insurance Business – Van premiums stabilise (Defaqto, 4 Jun 2026)
- Insurance Business – Van premiums fall 4.5% (Defaqto, 10 Sep 2026)
- MoneyExpert – Electric van insurance guide
- Admiral – Electric van insurance (checked Oct 2026)
- Confused.com – Van insurance (8 Sep 2026)
- Compare the Market – Van insurance (24 Sep 2026)
- Wheels Alive – Electric van insurance higher than diesel (Vanarama, Nov 2023)