By Jo Nova
Remember how we predicted insurance costs would rise when people realized that almost brand spanking new EV’s were being written off for scratches, because no one could test their battery and be sure it would not ignite? And then there was the news that after an accident, electric cars need to social distance, taking up as much as 50 times as much parking space, in case they blow other cars up? Well, insurance companies have realized this too. One underwriter has paused offering EV’s insurance entirely, while other companies are ramping up the rates by 60 – 900%. What a shock:
Zoe Wood, The Guardian
In the Facebook group, members share stories of horror renewal quotes, with increases ranging from 60% (up to £1,100) to a staggering 940% (a jump from £447 to £4,661, according to a screengrab shared by one driver).
“I spent weeks on every comparison site as well as trying individual insurers and specialist brokers, but either they wouldn’t cover the car or the quotes were £5,000 or more,” says David, whose only change in circumstance was three points on a licence.
Privilege, Vitality, Axa and the specialist broker Adrian Flux were among the brands he found were “unable to insure him at this time” before he nailed down a policy with Direct Line, albeit at a price.
Analysts say claims costs are 25% higher for electric cars, and that they also take about 14% longer to repair than a diesel or petrol equivalent.
One former BBC reporter Alex Gerlis bought an EV, insured it with John Lewis, only to find after a year John Lewis said it had stopped insuring EV’s altogether. Gerlis thought this “flew in the face” of the company saying it wanted to fight climate change and complained. This may have been the first time he realized that not everyone who “wants to fight climate change” is happy to lose their money on it.
If you own an EV and it is insured, you might be lucky if someone were to run into it in the car park.