Can Insurance Companies Help Pave the Road for Vehicle Fleets to Go Electric?
24-Jul-23
Can Insurance Companies Help Pave the Road for Vehicle Fleets to Go Electric? As the UK strives towards net-zero carbon emissions, many large companies are recognising their own responsibilities in working towards that goal. As such, many nationwide organisations are changing their petrol and diesel vehicle fleets to battery electric vehicles. Organisations pledging to make their fleets fully electric by 2030 include Royal Mail, Tesco, BT and Scottish Power. They, in turn, are holding the government accountable for ensuring the transition can run smoothly, with the right infrastructure in place to allow the changeover process to be straightforward.[i] The Government has responded with a range of measures which include commitments to increasing the number of charging points, as well as various tax breaks and incentives, both to employers running electric vehicles, and to employees if they run an electric vehicle as a benefit in kind. Motor fleet insurance As companies start to purchase electric cars and vans, rather than petrol or diesel, one important consideration for them is the ease of insuring such vehicles. The commercial insurance sector has been quick to respond to the growing electric market but needs to continue to improve the insurance offering as the sector continues to grow. A large market In the UK now, the RAC estimates that there are around 712,000 zero emission electric vehicles in the UK. Throughout 2022, around 267,000 battery operated vehicles were registered, up from around 191,000 in 2021 and 108,000 in 2020.[ii] Covid, and other world events, slowed the distribution of electric vehicles at the beginning of the 2020s, but the market is now regaining momentum. As these figures increase, insurance companies should be responding. Underwriters will need to continue to assess the risks as more data about electric vehicles becomes available, while insurance brokers will be advising fleet owners and managers on the most suitable insurance and making ...
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