EV insurance premiums soar

Drivers of electric vehicles (EVs) are facing higher insurance premiums in the UK because they claim more frequently and for larger amounts than those using petrol-powered cars, a leading insurance broker claims.

Carl Shuker, UK and Ireland boss of Howden Group, suggests EV drivers are having more accidents because they are not used to the powerful acceleration of such vehicles, reports the Telegraph.

Those factors have driven insurance premiums for low and zero-emitters in the UK hundreds of pounds higher, with the lack of specialist mechanics and the high cost of replacing EV batteries or other components cited as key reasons for the hikes.

Shuker tells the Telegraph the greater frequency of claims was a result of EVs tending to accelerate faster than internal combustion engine cars, which was catching some motorists off guard.

He says about seven per cent of petrol car drivers end up claiming for accidental damage, compared with about nine per cent of EV users. The value of claims made by EV drivers is also usually 35 per cent higher.

Shuker notes this is partly because EVs have more technology and their batteries, which often make up half the total value of the car, are vulnerable to damage even in minor accidents. 

Recent data from Howden shows the cost of insuring an electric car in the UK is now more than twice as much as cover for a petrol one, the Telegraph reports. Typical annual premiums are now £1,344 (NZ$2,770) for EVs and £676 for ICE cars.