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Electric vehicles and the future of motor insurance

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Amid the rise of EVs, UK insurers are under pressure.

The number of electric vehicles in the UK eased through the one million mark in 2024. Now the relentless march is on towards a ban on the sale of new cars powered by fossil fuels. And with a new Labour government, that deadline is now promised to be 2030, five years earlier than under Conservative rule.

By 2040, there will be a forecasted 11 million EVs on our UK roads. The challenge for UK insurers is immense, and in the replacement vehicle aspect of their service, insurers have work to do if they want to remain competitive in the EV space.

An Insurance Post/Europcar survey of senior claims and motor professionals at UK insurers revealed that when it came to offering replacement vehicle options for claimants with EVs, 85% had limited EV options or none available.

The exponential growth of EVs combined with the increasing regulatory demands of improved customer care, such as Consumer Duty, is likely to add pressure on those insurers lacking EV options for their customers.

This report sheds light on the research findings and how insurers can prepare for the future of motor insurance and the rise of electrical vehicles.

Topics covered:
• The EV challenge facing insurers.
• Existing replacement options for claimants with EVs.
• The future of the replacement vehicle market.
• FCA Consumer Duty guidance and supply chain management.
• Finding answers to the EV conundrum.
• Preparing for EV insurance claims.
• Making like-for-like EV replacement vehicles a reality.

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