EVs driving up motor insurance competition
The growing uptake of electric vehicles is boosting competition in the motor insurance sector, according to new research carried out by Consumer Intelligence.
It found that 11 new insurance products for EVs were launched on a price comparison website last year, with just four for petrol, diesel, or hybrid vehicles.
Products developed for EVs included special features such as charging equipment protection, breakdown support, and carbon offsetting.
EV premiums remain high due to large claims costs, but the Consumer Intelligence research has found a downward trend with some EV insurers cutting premiums by as much as 18% and one insurer increasing its EV quotability – the frequency at which it quotes – by 40%.
Rising sales
The growing focus on EV insurance is a result of rising sales, with the Society of Motor Manufacturers and Traders reporting that new BEV sales rose 35.2% in the first four months of this year compared with the same period last year.
In contrast, petrol sales dropped 10% and diesel 13.2%.
Ian Hughes, chief executive of Consumer Intelligence, said: “As BEVs become more mainstream, insurers are no longer treating them as niche risks. That’s creating space for more confident, competitive pricing.
“While electric vehicle sales remain just short of the government’s Zero Emission Vehicle mandate target of 22%, the trajectory is unmistakable, the shift is accelerating and insurers are responding.”
