Motor insurers are increasing their presence in the electric vehicle (EV) market as battery electric vehicles (BEVs) gain a larger share of the UK car sector, according to new analysis from Consumer Intelligence.
The firm’s data shows that 11 new insurance products began quoting for EVs on a major price comparison platform in 2024, compared with three to four new products for petrol, diesel, or hybrid models. Many of these new offerings include features tailored for EV ownership, such as cover for charging equipment, breakdown assistance specific to EVs, and carbon offset options.
Industry activity is being shaped by wider market trends. Figures from the Society of Motor Manufacturers and Traders show that new BEV registrations rose 35.2% in the first four months of 2025 compared with the same period in 2024. Over the same period, petrol sales fell 10% and diesel sales dropped 13.2%.
This shift in demand is part of a broader global trend, with analysts projecting the hybrid and EV insurance sector to grow at a compound annual rate of 16.9% through 2030. Insurers in multiple markets are adapting their product offerings and risk models in anticipation of sustained growth in electric mobility.
Premiums for EV insurance have begun to ease following the steep rises seen in 2023. Consumer Intelligence attributes this to a growing network of repair centres improving turnaround times, as well as more comprehensive claims data enabling more precise pricing. The risk profile for EV drivers is now viewed as more comparable to that of petrol and diesel motorists.
Some providers have reduced premiums by up to 18%, while one insurer increased its EV quotability – the rate at which it offers quotes – by 40 percentage points, which coincided with a 12% rise in its presence among the top five quoted positions on the comparison site.
Despite these developments, affordability concerns remain a barrier to wider adoption. The average annual premium for an EV in the UK is £996, around 54% higher than for petrol or diesel vehicles.
Consumer research also points to non-pricing factors slowing adoption, including battery longevity concerns cited by 37% of drivers, high upfront costs reported by 61%, and insufficient charging infrastructure identified by 36%.
EV cover also remains relatively expensive due to repair complexity and battery costs. While BEVs are generally involved in fewer accidents, claims are often higher value. Regional differences persist, with April premiums averaging more in the South East than in the North West, reflecting variations in congestion, theft, and claims rates.
In the commercial motor sector, EV adoption is progressing at a slower pace, creating a different set of challenges for insurers. The transition for fleet operators brings added complexity in managing evolving risk profiles, potential downtime from charging needs, and the higher costs associated with maintaining specialist vehicles.
Ian Hughes (pictured above), chief executive of Consumer Intelligence, said that as BEVs move further into the mainstream, insurers are not treating them as niche risks, which is opening the door for more competitive pricing.
“While electric vehicle sales remain just short of the government’s Zero Emission Vehicle mandate target of 22%, the trajectory is unmistakable, the shift is accelerating and insurers are responding,” Hughes said.
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