Record Insurance Premiums Could Destroy The UK Car Market

With the rise in EV numbers on the road, most insurance companies are writing them off even after a minor shunt due to the complexity and a lack of spare parts from what I have read. Plus, as EV’s seem to be more prone to fires, would they want to repair the vehicle with that risk in mind.

May 27, 2024 - 13:03
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Record Insurance Premiums Could Destroy The UK Car Market
Record Insurance Premiums Could Destroy The UK Car Market

With the rise in EV numbers on the road, most insurance companies are writing them off even after a minor shunt due to the complexity and a lack of spare parts from what I have read. Plus, as EV’s seem to be more prone to fires, would they want to repair the vehicle with that risk in mind. This cost has to be spread out and unfortunately, we ICE drivers have to pay. I have read that in some cases, Insurance Companies are either refusing to insure an EV or quote an astronomical price for insurance.

The Financial Conduct Authority said in a letter to MPs that consumers had already seen annual premiums increase by 21% on average since June 2022, but that some had experienced much higher.

It said the rise was due to a number of factors, including energy prices, and an increase in the cost of car repairs, paint, labour and spare parts.

The regulatory body said it was "monitoring the situation closely".

"Predictions show further increases in the year ahead," the FCA said.

Figures released last summer showed that motorists were paying more than ever to insure their vehicles.

An analysis of 28 million policies found the average premium in the three months to the end of June was £511.

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Jennifer Winget As a passionate news reporter, I am fueled by an insatiable curiosity and an unwavering commitment to truth. With a keen eye for detail and a relentless pursuit of stories, I strive to deliver timely and accurate information that empowers and engages readers.