Insight

Premiums on electric cars are increasing – but it’s not all bad news

7 May 2024
Insight

Premiums on electric cars are increasing – but it’s not all bad news

an electric car charge spot

Due to the ongoing energy crisis, the high costs of repairing electric vehicles and how much it costs to replace expensive parts, the running costs for electric vehicles are on the rise. With another energy price increase forecasted for March, it’s going to get more expensive for electric car owners to manage their vehicles.

To put things into perspective, according to the RAC, a Kia e-Niro with a 64.8kWh battery, will cost just over £27 to charge to the recommended 80pc capacity under the new energy cap. The petrol model equivalent, the Kia Niro (54L tank), would cost around £76 to fill under today’s average petrol price. A Kia Niro has an average of 583 miles on a full tank, whereas an e-Niro driver would have to spend £86.73 to cover the same distance.

 We recently sent out a newsletter with a note reminding our clients who have fleet insurance with us to always inform us to any changes to their vehicles/fleet. Premiums on electric vehicles such as Teslas are on the increase as well as excesses. In respect of electric vehicles, most insurers will look to restrict driving of these vehicles to drivers over the age of 25 and in some circumstances over the age of 30 and having held a full driving licence for a minimum of 2 years. Also, due to the market value of electric and high-performance vehicles (normally £50,000 and above) insurers may insist on a tracker being fitted to the vehicle and it being operational in order for them to provide theft cover (usually this is detailed in your policy schedule or in insurers policy wording).

Because of these rising costs and changes to premiums/excesses, we would like to emphasise the importance of checking that your vehicle insurance is as up-to-date as possible, particularly if your policy involves coverage of multiple vehicles.

 But, it’s not all bad news. According to a recent study by Aviva, 43% of would-be electric car owners fear a lack of access to charging points and potential black-outs and therefore worry about being stranded while driving. However, customers needn’t fear. Electric vehicle insurance policies can be tailored easily to ensure that should a car battery run out of steam while out and about, your insurer will call for the RAC to attend. They will either recharge your vehicle so you can drive it to the nearest charging point or tow it home or to a charging point. Insurance policies can also cover electrical breakdowns at your home charging points, as well as include charging cables and cover for them so you can rest assured that your vehicles/fleets are covered, whether it’s at home, or on the road.

To find out more about how Vista can help you with your vehicle insurance, get in touch with us on 0161 393 7111 or visit our website to see all of our specialisms at: www.vistainsurance.co.uk