THE popularity of electric vehicles may be increasing, but higher insurance costs may be putting the brakes on for drivers considering making the switch.
Around one-in-three motorists said they would consider buying an electric vehicle by 2030, when the sale of new petrol and diesel vehicles will be banned, according to a survey of 1,500 Islanders by Statistics Jersey.
The transportation sector currently accounts for 41% of the Island’s total emissions, with electric cars being a low-carbon alternative to vehicles that rely on fossil fuels.
Currently, 7% of Jersey residents have hybrid cars and 4% drive electric vehicles, but these numbers have grown steadily over recent years. However, escalating motor insurance premiums could be deterring environmentally minded drivers from making the switch to an electric car.
Islands Insurance told the JEP that there were challenges to insuring electric vehicles due to limited repair facilities in the Channel Islands, with higher repair costs as a result of specialised EV parts.
This means that electric cars are classified in higher insurance groups.
A spokesperson for Islands Insurance said: “There’s a bit of a challenge with repairing electric cars, especially the higher-end vehicles like Teslas. If they get seriously damaged, fixing them can be difficult because there aren’t any approved places to fix them in the Channel Islands. The nearest one is in Normandy.
“This issue is all about finding the right place for repairs and doesn’t change our willingness to insure electric cars.”
They also explained that EVs were often placed in higher insurance categories by organisations that collect vehicle data on behalf of the insurance industry.
Islands Insurance said: “This is because it usually costs more to fix electric cars if they’re damaged. On average, the cost of claims for electric cars is about 50% higher. This is because their parts are pricier and fixing them needs special skills.
“On average, the premium for popular electric vehicles such as the Renault Zoe, BMW i3, and Kia Soul is around £600 to £650. For a specific comparison, a quote for a Fiat 500C Passion Electric, model year 2023, is approximately £510, marking an increase of £70 over its petrol counterpart, without considering the vehicle’s age in the calculation.”
They added: “Electric cars are also quite new on the scene, which means there’s not as much data from past insurance claims. This data is really important for insurance companies to decide how much to charge. Since most electric cars have been around for less than five years, there’s just not enough information yet. This makes insuring them a bit of a guesswork, which can push prices up.
“However, as more electric cars hit the roads and more data becomes available, we expect insurance prices to become more stable and maybe even cheaper.”
