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22 Spring 2022 INSURANCE INSIGHTS I f you were recently stuck in a queue for petrol or diesel, you may be forgiven for casting an envious eye at those owning electric vehicles. With this is mind, you might think now is the time to be going electric – whether this be company cars, buses, vans, taxis or other vehicles, is something to consider with less than nine years before petrol and diesel car sales end. ere are pros and cons of going electric from an insurance perspective and other nancial factors to take into account. THE EXPENSE is is, understandably, a key concern for businesses. With the nancial challenges the pandemic has posed, choosing smart investments is a priority. So how costly is insurance for electric vehicles compared to petrol or diesel? e short answer is that electric car insurance is more expensive. e reasons for this are: • Lack of historic data: Because electric cars are still relatively new, insurers have had di culty calculating the cost of repairs, leading to cautious predictions and raised premiums. It is hoped, however, that as time goes on this will be subject to change. • Electric car mechanics are still few and far between: Another issue with being so new, there are considerably less mechanics trained in electric car repairs which makes it harder to shop around for a competitive price. Electric car mechanics, however, are on the rise. e demand for electric cars is rapidly increasing. e Department of transport reports that 2020 saw an increase of 125% of ultra-low emission vehicles (ULEVs) registered from 2019 andmore electric vehicles were registered than diesel cars for the secondmonth in a row in July, according to car industry gures. e increase in sales has led to an increase in data for insurers which, over time, creates the potential for a decrease in insurance costs. According to EDF energy, electric vehicles are likely to cost you less over the course of ownership. Electricity costs much less than petrol or diesel and electric cars require less maintenance than a petrol or diesel car. e government has also pledged £500 million to supporting the rollout of fast charging points, with the aim that drivers will never bemore than 30miles froma rapid charging station. e nancial incentive to buy electric vehicles is therefore still strong, despite the likely increased insurance costs compared to petrol or diesel vehicles. e increase in electric cars on the road has also givenmore insurers the con dence to enter the market, which it is hoped will eventually lead to a greater chance to shop around for competitive prices. Electric vehicle insurance is likely to start to come down in price for the following reasons: • eir engine: With electric cars, there are few complex moving parts that are at risk of being damaged. With the sale of non-electric cars ending in 2030, and hybrid sales ending in 2035 in the UK, the government says it will be ready by 2030 for a full electric roll-out - but will you be? IS YOUR BUSINESS READY TO GO ELECTRIC?