Insurance affordability threatens to slow UK electric vehicle uptake

GlobalDataFinancialServices

Mon, July 13, 2026 astatine 11:33 AM CDT 2 min read

A GlobalData survey recovered that security affordability remains a important obstacle to electrical conveyance (EV) adoption successful the UK, reinforcing concerns that security costs could dilatory the modulation to cleaner transport contempt increasing user involvement successful EVs.

GlobalData's 2025 UK Insurance Consumer Survey recovered that 42.1% of UK consumers expect to power to a afloat electrical conveyance wrong the adjacent 5 years—up from 36.8% successful 2024. However, contempt rising user intent, a notable proportionality of respondents to GlobalData's 2024 Emerging Trends Insurance Consumer Survey identified higher security premiums arsenic the cardinal origin deterring them from making the switch. This highlights that security affordability remains an important obstruction to wider EV adoption.

Brumble's investigation of Association of British Insurers and Department for Transport information notes that EVs proceed to outgo importantly much to insure than equivalent petrol and diesel models. This uncovering underlines the challenges facing insurers. Higher repair costs, costly artillery components, and constricted specializer repair capableness proceed to spot upward unit connected claims costs and premiums, adjacent arsenic insurers put successful improving EV pricing models and repair networks. Unless these structural outgo pressures statesman to ease, security pricing could go an progressively important constraint connected the gait of EV adoption.

For insurers, the findings item the request to equilibrium close hazard pricing with supporting the modulation to electrical mobility. As EV ownership continues to grow, insurers that put successful specializer repair partnerships, improved claims processes, and much blase underwriting models volition beryllium amended placed to constrictive the security outgo spread betwixt EVs and interior combustion motor vehicles. Doing truthful could amended affordability for consumers portion strengthening insurers' competitiveness successful a rapidly expanding conception of the centrifugal security market.

"Insurance affordability threatens to dilatory UK electrical conveyance uptake" was primitively created and published by Life Insurance International, a GlobalData owned brand.