First Electric Car Insurance Policy Launched

Insurance firm LV= has introduced a car insurance policy for electric cars only, which it claims is a UK first.

The insurance provider’s new bespoke policy will offer cover to drivers of electric vehicles when they run out of charge, sending assistance to take them to the nearest charging point. It will also provide cover for home charging cables, wall boxes and adaptors, as well as supplying customers with replacement electric or hybrid courtesy cars.

According to research from LV=, up to 8.6 million people, or 27% of motorists in the UK, will buy an electric car in the next five years. A survey of over 2,000 drivers revealed that 58% of them were thinking about buying an electric vehicle as their next car because they want to travel in a more environmentally-friendly way. 47% also said they were considering an electric car in order to save money, due to the cheaper running costs over a petrol or diesel vehicle.

36% of drivers said they were aware of a shift towards petrol-free roads in the coming years. Many manufacturers have already committed to only producing electric or hybrid cars from 2020 onwards. Other countries are already seeing a huge increase in the sale of electric vehicles. In Norway, for example, 58.4% of all vehicles sold in March were electric.

“The motor industry is transforming at an incredible rate, with some of the most exciting developments being seen in the growing market for electric cars,” said Martin Milliner, claims director at LV=. “Many car manufacturers have committed to making more electric cars and there’s even speculation that James Bond will be driving one in the next film, so it’s clear that these types of cars are growing in popularity.

“If we are to help make people feel more comfortable with the shift to electric vehicles over the next few years, then insurance must keep pace. Electric cars have very specific needs. Our new insurance addresses this and drivers can be confident of making the change to these cars of the future, knowing they have the right cover to protect them.”

Any existing customers of LV= GI who already own an electric car will have immediate access to the extra benefits. When renewing their car insurance, these customers will also have their policies automatically updated to the electric car policy at no extra cost.

“2018 was another record year for the UK electric car market with registrations hitting 60,000, taking the total number registered to date to more than 200,000,” said Poppy Welch, head of marketing at electric vehicle promoters Go Ultra Low.

“With an ever-growing choice of models delivering impressive range, continued investment in charging infrastructure, the next 12 months could be another landmark year for electric vehicles. This new insurance policy will make it even easier for motorists to make the switch and we hope to see other insurance providers follow suit and release products tailored for electric vehicle drivers.”

LV= has also teamed up with Zap-Map, an app which provides customers with an interactive map of all the 20,000 charging points in the UK. This is designed to help some motorists who are put off electric vehicles because of a perceived lack of charging points, or not knowing where to find them.