New insurance policy launched for EVs
Drivers of electric cars in the UK can take advantage of a new car insurance product developed specifically for plug-in vehicles. The new policy will provide a solution for fleet drivers opting out of company cars and using a cash allowance to source their own cars.
Zoom, a Manchester-based start-up, has partnered with Think Insurance to create the policy for electric vehicles (EVs), both battery electric and plug-in hybrid. It claims that traditional insurers have been too slow to adapt policies for EV drivers.
“Their experience was awful, insurers hadn’t upskilled their workforces so they didn’t have any knowledge of EVs (people kept getting asked what engine size their Nissan Leaf was!), policy wording hadn’t been updated to factor in plug-in specific scenarios and there was no added value for driving better cars,” said Greg Fairbotham, CEO, Zoom.
EV insurance 14% more expensive
Research by Vantage Leasing found that EV insurance premiums are about 14% higher than those of cars powered by internal combustion engines.
“While the average difference was 14%, EV cover can be as much as 37% pricier than a petrol or diesel equivalent,” said Vantage.
These higher premiums are due to a number of factors, according to a new study by Zurich Insurance.
“As EV technology is still relatively young, and the cars are still expensive, the cost to repair or replace specialist parts or service the vehicle tends to be higher – resulting in higher premiums,” it said.
EVs are higher risk
In addition, the silent motors of EVs raise the risk of collisions with pedestrians and cyclists.
“Research shows that electric cars are about 40% more likely to hit a pedestrian than a conventional vehicle,” said Zurich.
Plus, charging cables can cause trip hazards that might lead to personal injury claims against the EV driver.
Added benefits of EV insurance
Zoom spent more than a year developing its EV-specific insurance policy, which also adds Zoom’s Sustainable Mobility Bundle that gives drivers preferential access to EV charging and parking networks, discounts on green energy costs, and a 10% saving on the cost of installing a home charger.