Wednesday, February 21, 2024
HomeLifestyleElectric car owners may face shocking 1000% rise in insurance premiums during...

Electric car owners may face shocking 1000% rise in insurance premiums during crisis


Electric car owners are facing close to 1000 percent rises in their insurance premiums during a cost of living crisis, reports show.

Some owners have seen their premiums spike by over £4,000 compared to last year in a move which has baffled owners and left them out of pocket ahead of winter.

Tesla owners have shared their stories in a Facebook group where they have told others about the horror premiums they now have to pay.

One owner said Aviva refused to insure him and his Tesla Model Y when his insurance came up for renewal and that other brands had turned him away.

Their experiences come just weeks after Prime Minister Rishi Sunak changed Government policy on the sale of new petrol and diesel cars after manufacturers invested millions in the UK’s electric car market.

Tesla driver David told the Guardian: “My insurer was Aviva from July 2022 to July 2023, but when it was coming up for renewal, I received a letter stating that they would not be covering the Tesla Model Y anymore.

“I am a member of a Tesla UK owners forum, and lots of other people seem to be having the same issue.

“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.”

David said the best quote he got was £4,500 from Direct Line, a number that surpassed £5,000 once the monthly interest was added. What’s more, David isn’t the only electric car driver affected.

Alex Gherlis drives a Smart EQ Forfour, a city, that retails from around £20,000.

Before his mid-August renewal date, he was advised by John Lewis Finance that they would no longer insure his electric car because it was not insuring electric vehicles anymore.

For owners like Alex and David, their rejections have come ahead of the hardest time of the year for people in the UK. As the mercury drops and energy prices rise, any rise in premiums will hit harder.

All drivers have faced a rise in premiums, but petrol drivers are seeing much smaller rises, on average just 29 percent according to Confused.com.

Motor expert at Confused.com Louise Thomas said: “Despite electric vehicles becoming more common, they are still the minority on UK roads, and insurers have less experience setting premiums for these types of cars.”

Alongside a rise in premiums, there are other risk factors for electric car drivers too. Chief executive of Green Insurer Paul Baxter explained that their cost and the availability of parts are major factors.

So too is the expertise needed to repair the cars. Mr Baxter explained: “There’s also an issue around technology and skills in the repair networks. They’ve not got to the stage they are with traditional cars in terms of expertise.

“If you dent a door, that’s straightforward, but if something has damaged the battery, in particular, they haven’t caught up with that.”

A spokesperson for Aviva told the publication: “Although we insured the Tesla Y Model last year, during the year we changed this acceptance criteria and we were no longer able to offer a policy at renewal.

“We have made further changes and we are able to underwrite these vehicles on some of our products already and expect others to follow.”

A spokesperson for Direct Line added: “We price customers’ policies based on our view of risk and the rating factors we use, including the model of the car and inflation. Like many other sectors, insurers continue to face higher costs.”

Express.co.uk has approached Tesla and Aviva for comment.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments