Motor insurers charge into EV market as competition accelerates

Motor insurers are ramping up competition in the electric vehicle (EV) sector as battery-electric models move further into the mainstream, according to new analysis from Consumer Intelligence.

Its data shows that 11 new insurance products began quoting for EVs on a major price comparison website in 2024, compared with just three or four for petrol, diesel or hybrid models. New offerings increasingly include tailored features such as charging equipment cover, EV-specific breakdown support and even carbon offsetting options.

The shift in underwriting appetite comes amid buoyant sales. Society of Motor Manufacturers and Traders (SMMT) figures reveal that new BEV registrations rose 35.2% in the first four months of 2025 versus the same period last year, while petrol sales dropped 10% and diesel fell 13.2%.

After sharp premium rises in 2023, rates are now easing as repair network capacity expands, turnround times improve, and richer claims data allows for more accurate pricing. According to Consumer Intelligence, the risk profiles of EV drivers are now converging with petrol and diesel motorists. In some cases, insurers have cut EV premiums by up to 18%.

One insurer increased its EV quotability by 40 percentage points, gaining a 12% rise in its share of the top five quote positions. EV quotability is the frequency with which an insurer returns a valid price for an electric vehicle on a price comparison site, It is a key measure of underwriting appetite and market availability.

However, EV premiums remain comparatively high, reflecting costlier claims caused by specialist repair needs and battery complexities. Regional variation persists, with April prices higher in the South East than the North West due to differences in congestion, theft and claims rates.

“As BEVs become more mainstream, insurers are no longer treating them as niche risks,” said Ian Hughes, chief executive of Consumer Intelligence. “That’s creating space for more confident, competitive pricing. While sales remain just short of the Zero Emission Vehicle mandate target of 22%, the trajectory is unmistakable — the shift is accelerating and insurers are responding.”

"Motor insurers charge into EV market as competition accelerates" was originally created and published by Motor Finance Online, a GlobalData owned brand.

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