Car insurance is about as old as car ownership itself. Sources disagree on when exactly the first policies were sold, but we are certain that early car insurance policies were purchased in 1897 and 1898, marking a formal recognition of the potential risks of driving. Accidents, theft, and damage have always been threats to vehicles, but the rise of electric vehicles (EVs) has led to new specialised insurance that covers risks specific to EVs and their charging equipment.
EVs require special insurance because they share little in common with conventional petrol-powered cars, outside of a few superficial features. EV batteries, for instance, can be more expensive to service or replace compared to traditional internal combustion engines (ICEs). The supply infrastructure for EVs is also not as developed as the ones typically available for ICE vehicles, further driving up the cost of repairs and ownership. Liability coverage for chargepoints also needs to be considered, since they are integral to getting optimal use of EVs.
Still, even with potentially less familiar insurance structures, the lower running costs and environmental benefits of EVs compared to ICE vehicles make them worth considering. Let’s look a some essential insurance areas to look over when you buy an EV:
1. Charging Equipment Coverage
It’s important to note that not all insurance policies automatically cover home or workplace chargepoints. Look for policies that extend coverage to charging equipment in case of damage or theft. In any case, choosing a quality charger will minimise your risks and keep your car in good shape. For example, if you’re planning a Zappi EV charger installation at your home or office, you should always make sure to look for a licensed installer to do the job.
2. Higher Premiums Due to Costs
As you may have guessed from their more expensive parts and repairs, EVs typically cost more to insure than petrol or diesel cars. Baseline premiums for EVs tend to be higher than equivalent ICE cars, but this may go down as global EV supply chains continue to develop.
3. Battery Coverage
EV batteries are especially expensive so make sure your next EV policy covers damage or theft of the battery. In cases where the battery is leased separately, check with your insurer if this is accounted for.
4. Specialist Repairs
You can’t just drive your EV up to any mechanic for servicing. As it is, EVs still need specialist garages and specially trained mechanics for repairs and maintenance. These costs may go down as EVs continue to gain ground in the UK, but regardless, you’ll want to ensure that your policy covers repairs by certified EV mechanics.
5. Roadside Assistance
Not all insurance policies will cover EV-specific roadside assistance. This is a major consideration since the UK doesn’t have widespread EV infrastructure outside of major urban areas. If your battery runs out of power in the countryside, nearby roadside services may not always be able to help. Consider these policy clauses if you live in an area with limited support for EVs.
6. Fire Risk Protection
EV fires are often sensationalised in the media, but they are still a real, albeit increasingly rare, occurrence that you have to account for. Damaged batteries and charging equipment are the chief cause of these incidents, so don’t get an insurance policy that excludes situations involving these causes.
7. Impact on No-Claims Bonus
As with conventional car insurance, any claims made on your EV will impact your no-claims bonus. Be mindful of how EV-specific areas like battery or charger-related issues might affect these bonuses.
8. Eco-Friendly Incentives
Some insurers may offer incentives for drivers who opt in on eco-friendly initiatives. Opting in on these programmes could potentially lower your premiums and reduce your EV’s running costs.
9. Public Charging Station Liability
Public charging stations are used much more heavily than private chargepoints, often resulting in improper usage and damage that can affect your EV. Because of the elevated risks, not all EV insurance policies will cover damage that happens as a result of using public chargepoints.
This isn’t necessarily a problem if you only use your EV for nearby commutes, since you can always depend on a home charger. However, if you have to do a lot of long-distance driving, you may want to check whether your policy covers damage to your vehicle or the chargepoint when you use a public charging station.
10. Availability of Usage-Based Policies
Some insurers offer telematics (i.e. usage-based) insurance for EVs. If you’re fine with having your insurer track your driving habits, opting for these policies can significantly lower your premiums—provided you can safely drive your EV.
Stay Protected as You Go Electric
As the UK moves to reduce the number of ICE vehicles on the road, EVs and EV insurance will become more important for more drivers. Ensuring that your policy covers the most critical aspects of EV usage will provide peace of mind as well as lower driving and ownership costs. Whether you already own an EV or are just considering buying one, learning more about dedicated EV insurance will protect your investment.
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