Electric vehicles are becoming more and more popular with each passing day. We’re seeing an increase in the number of our customers purchasing electric vehicles, due to the many benefits such as:
- Tax benefits and incentives
- Reduced running costs
- No road tax
- Driving in clear air zones
- Dedicated car park spaces
- Lower servicing costs
- Greener for the environment
Not to mention some of the impressive technology that electric vehicles are shipped with.
So, what’s the problem with insuring them?
Insuring electric vehicles can sometimes be a little trickier than a conventional petrol/diesel car. This is particularly true if you’re in between renewal dates and need to do a change of vehicle with your existing insurer.
A significant driver of this is that electric vehicles are still too new for insurers to make accurate predictions in terms of average claims costs.
Typically insuring electric vehicles can therefore work out more expensive than an equivalent petrol/diesel vehicle. However, this is changing and with enough planning, you should be able to find the right cover at the right price.
Our experience with electric vehicles
As independent brokers, we often need to refer to insurers to assess the risks. This process is sometimes more complicated when it comes to insuring electric cars.
For this reason, we recommend engaging with your insurer as soon as possible when it comes to any changes, but particularly when it comes to changing from petrol/diesel to electric.
What’s happening next?
Over time as electric vehicles become more standard (and once insurers have more data) they will become as easy to insure as a petrol or diesel car.
With the UK government saying that all newly manufactured vehicles must be either hybrid or electric by 2030, widespread adoption from consumers will only accelerate change.
Insurers make data-driven decisions about risk, and every insurer has different risk appetites that change based on new information. This is why insurers can seem to lag behind when it comes to new technology.
How to avoid being overcharged
Insurance is usually the last thing we think about when buying a vehicle. However, if you’re interested in buying an electric car we’d recommend bringing your insurer into the conversation as soon as possible.
It pays to plan when insuring electric vehicles. This helps to ensure that you end up with a fair deal, rather than being rushed to find cover with limited options.
As a broker, it’s our job to compare and act in your best interests. Whether your insurance is for personal needs or commercial, we’ve got you covered.
If you’re looking for a forward-thinking insurance broker that protects your loyalty, year after year – then give us a try.
