Electric cars are no longer a forecast into the future. Today, they are firmly rooted in our transportation system and the demand for them is only increasing. With growing concerns for our environment, it’s easy to see why companies and drivers are taking a greener route.
Fleet managers are now likely to have to deal with the transition to Electric Vehicles (EV) within their fleet. This may be a gradual process, but a lot will need to be considered to ensure that it rolls out smoothly.
With this in mind, is there a difference between insuring electric cars and regular motor vehicles in a fleet? At FleetCover, we’ve got you covered no matter what type of fleet you may have.
Can I get fleet insurance for an electric vehicle fleet?
From a customer and insurer perspective, the process of getting fleet insurance for electric vehicles is the same as a normal vehicle. However, due to the market being smaller and still in its infancy, not every insurer will provide a fleet quotation for electric vehicles.
For insurers that do provide a fleet quotation, they may impose additional terms and conditions – e.g. they may require a tracker fitting to the vehicle, depending on the value.
At FleetCover, we work with leading providers to ensure that all fleets have access to the right level of insurance at the best prices. We can provide full fleet insurance for EV fleets, whether they are solely electric or hybrid.
What benefits do electric fleets offer businesses?
Going electric isn’t just beneficial for the environment. Company car drivers who choose to drive electric vehicles will pay no benefit-in-kind tax in 2020/2021, saving huge amounts of money on company car tax, along with vastly reduced cost-per-mile.
Not only this, but there are incentives ranging from initial purchasing grants to cheaper VED road tax and Congestion Charge exemptions.
What does electric fleet insurance cover?
Like any standard fleet policy, your vehicles will be covered by either Third Party, Third Party Fire and Theft or Comprehensive Cover. The level of cover will depend on your specific fleet needs.
If you have a hybrid or fully electric fleet, you’ll need a tailored policy that effectively covers all aspects of EV operation. This includes cover for:
- Hybrid or electric cars, electric vans and electric HGVs
- Low emission vehicles
- EV batteries
- EV power sources, such as power cables
The future of electric car fleet insurance
While electric car insurance may seem to be expensive at the moment, as time goes on and insurers can collect more information, the gap between electric and motor vehicles will narrow. Currently, you can still expect insurance to be more expensive for an electric car than a standard vehicle.
However, as electric vehicles become more commonplace and consequently, the need to repair these vehicles increases, more and more independent garages are embarking on training their technicians to service and repair hybrid and electric vehicles.
This means that there is more data available for the cost of repairs, allowing insurers to more accurately assess their premium levels and allow costs to come down.
If you are looking for insurance on a fleet of electric vehicles, the most important action to take would be to contact a fleet insurance broker, such as our team at Fleetcover. We work with the UK’s largest insurance providers for fleets to get you a professional, hassle-free policy proposal.
We have access to a carefully selected panel of over 20 different insurers, meaning we can provide you with a competitively priced, comprehensive insurance policy.
FAQs about EV Fleet Insurance
Why is electric car insurance more expensive?
Whilst running costs are definitely lower due to electric charging, when it comes to insurance, electric cars have proven more expensive to insure.
Given that electric cars were new to the market a few years ago, companies such as Tesla, Nissan and Renault found it difficult to find cost-effective insurance for their models. Without accurate historic data, insurers have had difficulty in calculating the cost of repairs, leading to overly cautious predictions and raised premiums.
While franchised dealers may be geared up to repair electric vehicles, it can be more challenging for independent and smaller body shops to invest in training and equipment.
This could potentially leave fleet operators with less choice about where their vehicles are repaired. Industry figures show around 23% of leased cars and 33% of leased vans are repaired by independent workshops, which are typically cheaper than franchised dealers.
Learn more about how fleet insurance premiums are calculated in our useful guide.
Will electric car insurance get cheaper over time?
The demand for electric cars has been rapidly increasing. Due to this, more people have been purchasing and driving electric cars, which then gives insurers more data for the cost of repairs.
With more data in hand than before, more and more insurers are now starting to enter the market, which should result in insurance prices coming down.
Electric cars are also less likely to be stolen than normal vehicles and are more likely to be found if they are, as usually, they are fitted with better tracking software as standard.
Also, electric cars may be more difficult to steal as they are typically either kept in the owners garage whilst they are not being used or at a charging point which can usually be found in well populated, busy areas which are less attractive to a potential car thief.
Another main difference between electric cars and motor vehicles is the way the engines are built. With electric cars, there are few complex moving parts that are at risk of being damaged.
Repairers are now starting to understand the electric car engines in greater detail, meaning more people are developing the expertise required to fix the cars. There is also a good level of protection for the most expensive part of an electric car: the battery pack.
It has also become apparent that the battery packs – the single most expensive part of an electric vehicle – are reasonably well protected in the event of an accident, reducing the risk of costly replacement.
So, battery-pack protection, increasing repairer expertise and a more streamlined engine may result in electric insurance costs coming down in the future.
What additional cover do electric vehicles need?
Electric vehicles will naturally need a more complex insurance policy, as there are additional features that will need to be considered and specifically covered.
It’s important that insurance buyers are absolutely clear on what is covered by a policy, as it can vary and it is easy for owners to overlook the need to cover some of the additional equipment that comes with the vehicle, for example, power cables.
If you buy or lease one of the electric vehicles that require you to lease the battery, it is also important to establish whether you have to take out separate insurance to cover the battery as well as the vehicles, in the event of suffering accident damage or theft.