Electric car owners in the UK face skyrocketing insurance premiums when trying to renew their policies. Many are reporting increases of up to 940%, making insurance inaccessible for some. The problem is not limited to a specific brand of car, as owners of Tesla Model Y and Smart EQ Forfours face significant price increases.
The average increase in insurance premiums for electric vehicles is 72% compared to the previous year. This is significantly higher than the 29% increase for drivers of petrol and diesel cars. The higher costs are attributed to several factors, including the higher cost of repairs for electric cars due to expensive features and upgrades. Claims costs for electric cars are 25% higher, and repairs take approximately 14% longer compared to their traditional counterparts.
Parts availability is also mentioned as a concern, as well as the experience of repair networks. The Automotive Industry Institute projects a shortage of about 16,000 qualified electric vehicle mechanics by 2032. Technology repairs, particularly those involving batteries, are not yet well established.
The increase in insurance premiums for electric cars can be attributed to insurers’ lack of knowledge in setting premiums for this type of vehicle. Despite the drawbacks, rising fuel prices and environmental concerns are pushing more and more drivers to switch to electric cars.
Some insurance companies are “pausing” the offering of policies for electric cars while they assess the risks and costs involved. For example, Aviva changed its acceptance criteria for Tesla Model Ys and stopped covering them upon renewal. However, it is now including electric vehicles in some of its products and hopes others will do the same.
In general, rising insurance costs for electric car owners highlight the need for insurers to adapt their policies and premiums to better accommodate these types of vehicles. As the number of electric cars increases on the roads, insurers will need to gain more experience in setting premiums and assessing risks for electric vehicles.
Sources :
– UK Tesla Model Y owners and drivers facing huge insurance premium increases, The Guardian
– Insurance premiums for electric cars increase by 72% in one year, The Guardian
2023-09-30 19:42:31
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