Electric Vehicles (EVs) longer pose a 'minor concern' for car insurance coverage.

In the rapidly evolving automotive landscape, the shift towards electric vehicles (EVs) is unmistakable. According to Ian Hughes, chief executive of Consumer Intelligence, insurers are no longer treating EVs as niche risks.

London, a hotspot for EVs, experiences higher insurance prices due to factors such as traffic congestion, car theft, and claim rates. However, the insurance industry is responding to this shift, with companies like HUK-COBURG doubling their range of car insurance products for EVs in recent years, leading to increased insurance friendliness for EV drivers.

Last year, eleven new car insurance products for electric vehicles began quoting on a major price comparison site, indicating a growing market. Lower premiums are being offered for EV insurance, with some electric car insurers cutting prices by nearly 20 percent due to the richer claims data.

The expansion in repair networks allows damaged electric vehicles to be fixed more quickly, reducing downtime and potential inconvenience for EV drivers. This, coupled with the increasing mainstream adoption of EVs, is contributing to a more similar risk profile for EV drivers compared to petrol and diesel drivers, as shown by a richer set of claims data.

Insurers are also offering a greater choice of policies for EVs, with one insurance company increasing its 'EV quotability' (the frequency at which it quotes) by 40 percent. This increase earned the company a 12 percent increase in its share of the top five quote positions.

Despite the progress, the sales of electric vehicles are not yet at the government's Zero Emission Vehicle Mandate target of 22 percent. However, the trajectory is accelerating, with electric vehicles becoming more mainstream.

In the south east of England, prices for EV insurance are higher compared to the north west, reflecting regional differences in factors such as traffic congestion and car theft. Nonetheless, the trend towards more affordable and accessible EV insurance continues.

In conclusion, the insurance industry is adapting to the growing EV market, offering more competitive prices and a wider range of products to cater to the needs of EV drivers. The shift towards EVs is undeniable, and the insurance sector is an essential part of this transition.

Electric Vehicles (EVs) longer pose a 'minor concern' for car insurance coverage.