Drivers of electric cars are being asked to pay more than twice as much for insurance as those who own petrol-fuelled models as EV premiums surge 50% in a year, data have revealed. The Telegraph has more.
The typical insurance premium for electric vehicles (EVs) has increased to £1,344, a rise of 50% compared with a year earlier, according to U.K. broker Howden Group.
That is double the cost of cover for combustion engine cars, which Howden blames on a higher cost of repairs for electric models.
Insurance premiums for all types of cars surged last year but the rise for EVs was bigger both proportionally and in real terms, the company said.
For example, while the cost of insuring a typical internal combustion engine (ICE) car jumped by 31%, the number itself rose from £514 to £676, some £668 less expensive per year than insuring an electric car.
Howden blamed this on a higher frequency of claims from EV drivers and a higher average cost per claim than for ICE-model drivers.
The average cost per claim for accidental damage was typically 35% higher for EVs, the company said.
Howden said this was due to the more complicated technology in electric cars which tended to require specialist mechanics with specific equipment.
Batteries were also “expensive and prone to damage”, Howden added.
Carl Shuker, the broker’s U.K. and Ireland boss, told Bloomberg: “You’ve got length of repair times going up, you’ve got the cost of the component parts going up, and you probably see more EVs written off because residual values are particularly low at the moment.”
It comes following reports that some EV drivers are being refused insurance completely, or being charged extortionate sums of up to £5,000 or more for a year’s cover.