These are interesting questions, as recent data shows that most new EV purchases are for fleets, Motability, or public sector departments in the UK. The start of VED taxation in April for EV vans and cars won’t help matters either. Then there are the fires associated with EV battery packs, which are relatively few, but then we don’t have a 25 million EV parc yet.
Let’s dive in;
PUBLIC CHARGING POINTS: CAN THEY MEET MASS MARKET DEMAND?
Hard to see a day in the future when every urban street has 10-20 charging points. The infrastructure costs, danger from unattended cables for pedestrians and cyclists, plus the drain on the National Grid conspire to rule out that idyllic scenario. From an insurer perspective it is good to know where charging points and private driveway points co-exist, since that highlights wealthier areas. Which means more valuable cars and higher premiums.
For example Place Informatics’ advanced data analytics can map key demographics and infrastructure readiness, helping identify:
- Households with home charging potential – Detached and semi-detached homeowners with driveways are more likely to purchase EVs due to easy access to private charging.
- Households facing charging challenges – Apartment dwellers, terraced and townhouses without private parking face greater barriers, requiring investment in public charging networks.
- Regional EV readiness – By analysing income levels, commuting patterns, and environmental attitudes, Place Informatics helps prioritisation by pinpointing areas where EV adoption is more likely.
Clive Hall, CEO of Place Informatics, commented, “EV adoption isn’t just about government targets—it’s about understanding real consumer needs and infrastructure gaps. Our data-driven insights allow businesses and councils to identify high-potential areas for EV sales and charging investment, ensuring the transition to electric vehicles is both practical and sustainable.”
To find out more and to see the full report please visit- https://placeinformatics.com/
THE MOTABILITY SCHEME IS UNSUSTAINABLE
According to latest data the UK Motability scheme attracted more customers last year and a big uptick in applications for pure EV battery cars. It also dished out some 66,000 home wall box chargers. Some £57m was invested in new EVs, up from £19.6m in 2023 – huge percentage increase.
It’s a laudable aim to give everyone claiming a disability – or their carers – a free car, taxed, insured and with a home charger too. But there is a limit to the number of applicants who have a driveway or residents car park. The scheme is run by UK banks, as a charity operation, but it posted a huge loss last year of over £565m. Furthermore, the scheme is unique in that one insurer – Direct Line – covers all the cars.
This offers an upside in terms of admin and billing, in that one insurance brand send the bill to the Motability charity each month. But that does leave one insurance brand, and their panel of underwriters, accepting an increasing risk profile as higher asset value vehicles are used by those with a disability, or their carers. Under the current rules, up to three drivers can be “Named” on the insurance policy too, which is typically one extra person above a general car insurance policy.
As the asset value increases, so too does the risk of theft, vehicle recovery, storage during complex repairs or write-offs and the risks associated with a rota of designated carers driving a Motability EV. In the long run the transition from petrol or diesel Motability cars to pure battery power means a re-think on the insurance regulations surrounding the scheme. Features like real time EV tracking, driver ID login or night/weekend curfews might be part of the risk management profile in future, otherwise the insurance book will post a huge loss at some point.
HIGHER RRP MEANS HIGHER INSURANCE PREMIUMS
The cost of EVs continues to rise, which has undoubtedly put off many UK buyers. As 2025 unfolds there is some price discounting happening to try and shift dealer stock, but as Total Systems noted in a recent Whitepaper a small SUV with a battery can retail at over £30,000. That is a big monthly lease payment for many private buyers.
But it isn’t just asset values, and more expensive repairs on claims that are bumping up premiums on EVs. There is some evidence from an academic study that EV drivers tend to have a propensity for at-fault accidents too – maybe the illusion of ADAS features makes some drivers switch off mentally, or perhaps the large laptop screens inside the cars are actually a hazard, not a benefit?
The study noted;
“Our research finds that despite their lower average mileage than internal combustion engines, lower road exposure for EV drivers does not reduce their risk of experiencing an at-fault insurance claim. When analysing at-fault claims, we find a 4% increase in crashes from EVs and a 6% increase for hybrids (HYBs) compared to internal combustion engines.”
REPAIR NETWORK HAS NOT EVOLVED YET
According to the GDV, a German association for insurers, there is “frustration” that a typical car insurance claim and repair costs about 25% more for an EV than a combustion engine car. Partly this is because the infrastructure to recover, assess, store and repair electric cars is still evolving and trying to graft it onto the existing garage network for diesels and petrol cars was never going to work. Different diagnostic equipment, windscreen lift and fitment machinery, battery storage, fire prevention etc.
The biggest challenge is the removal of battery packs during the repair process, as the GDV notes; “After accidents, traction batteries are often completely replaced. In addition, the cars are stored in quarantine for a very long time or even submerged in water in extinguishing containers, leading to a total loss.”
Until a new network of EV only repair workshops, with an advanced method of checking battery pack damage/safety WITHOUT REMOVING IT, is developed and regulated, so that insurers and consumers know a repaired EV is safe to drive, then the situation is unlikely to change.
All of which explains why Audi/VW closed their Q8 EV factory last year, Ford delayed new EV models and BMW cancelled its MINI EV plant near Oxford. Expect more of that to come as China and India continue to undercut US and EU manufacturers on both EVs and Hybrids in the rest of the 2020s.
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