What do electric vehicles mean for the future of commercial insurance?

From small city vehicles to luxury sports cars, electric cars have been making a splash in the world of private drivers and insurance for a while now.

But as the Government gears up to make electric cars the go-to vehicle in the next ten or so years, now is the time for businesses to take a closer look at the electrical revolution – and what it may mean for their fleet, their business costs and their insurance.

While we’re still a way off to going 100% green on Britain’s roads, staying clued up to what’s changing, how it’s changing, and what to expect can only do good things for your business vehicle budget. If your business is serious about the environment, or you just like the look of the potential tax savings of going green with company cars or fleet vehicles, then thinking about what your insurance will look like should be firmly on your ‘to do’ list.

So, what do electric vehicles mean for the future of commercial and business insurance? We’ve covered some of the latest insights about commercial insurance and electric vehicles below to get you in the know:

Electric vs old-school: What’s the difference?

If you’re talking about what goes on inside the vehicle itself, there’s plenty of difference between your average standard fleet vehicle or courier van and their electric counterpart. But beyond what goes on under the hood, the way that electric and non-electric vehicles function in a commercial sense doesn’t vary by all that much. You’ll still be doing the same job and providing the same services. Just in a slightly newer, greener car.

Much like any new technology, however, electric vehicles are still on the rise. That means they haven’t yet hit the peak and plateau that petrol and diesel vehicles landed on a long time ago, and that means you could be looking at a bump up in insurance costs, as well as the general costs of maintenance and caring for an electric care.

Why you can expect to pay more out of pocket for commercial insurance

Until mechanics specifically for electric cars become widespread, you may end up shelling out more than you’d expect for the maintenance and servicing of fleet and commercial vehicles. <a href=”https://pod-point.com/guides/driver/electric-car-insurance”>According to Pod Point</a>, this plays a lot into the additional costs involved in your overall insurance quote. If your fleet currently needs to access specialist parts to keep them on the road, it’s not a surprise that you’ll pay a little more up-front.

This applies to both commercial and personal car insurance. The parts are the same, which means that the bump in price remains around the same level. Once mistake commercial businesses may make is being put off by this increased price – but with so many moral, financial, and practical benefits to going electric, it’s more than worth that potential price increase. Especially as electric becomes the standard across the UK and beyond.

According to Driving Electric, a combination of the scarcity of electric vehicles, the higher purchase price of these cars, and even their newness all play into what you’re likely to pay. Up until a year ago, many insurance companies didn’t even offer electric insurance as an option – though that’s rapidly becoming more widespread.

How is insurance changing to meet the needs of electric vehicles?

It may surprise you to know that commercial insurance doesn’t need to change all that much to accommodate the new wave of electric courier, fleet and company vehicles. The foundations for your insurance are already there, and it may be a comfort to know that in the future, a lot of what you get as part of your insurance will stay the same.

As for what will change? As electric vehicles become the standard, the wording and specifications around your commercial insurance policies may be altered to suit the specific parts, requirements, and mileage of the average electric vehicle. The demand for electric cars continues to increase, so those policies will quickly be perfected to suit the needs of the commercial market.

What will commercial insurance look like once electric vehicles are mainstream?

Experts on platforms like What Car? Have acknowledged that electric vehicle insurance of all kinds is currently more costly than your standard insurance – but that’s not likely to last. As more and more cost-effective electric vehicles become available to fleets and businesses, that lack of scarcity will mean the numbers for your future commercial insurance will settle back down to a more cost-effective rate.

Green cars are only going to become more mainstream. As commercial insurance companies follow suit, those premiums are going to sink back down – making electric vehicles affordable and practical both on paper and in your budget. Specialist policies may even come along to offer specific electric insurance for specific fleet, company or even courier purposes to suit the incredible versatility that electric cars bring.

Are electric vehicles worth it with the extra costs?

Electric vehicles may have just toddled out of their infancy, but they are still very much newcomers to the British market. Even more so when it comes to commercial businesses. But with a bright future and the likelihood of fantastic tax savings and exemptions to congestion charges, getting in on the electric bubble in the near future might be a good thing for any business.

Beyond the figures, electric vehicles also offer a slew of other benefits. From providing great PR for your company as an eco-conscious business to reducing money spent on mileage and future-proofing your fleet, going electric isn’t far off for most UK businesses. For tradespeople, taxi companies, company vehicles and even HGVs, electric is here to stay – and when it comes to providing affordable insurance, we’ll be at the forefront when you are.