The growing adoption of electric vehicles (EVs) in the UK is changing the risks motor insurers must assess, particularly as more drivers consider moving away from petrol and diesel vehicles. GlobalData’s research indicates that a substantial proportion of UK consumers expect to make the switch in the coming years. This suggests insurers will need to continue adapting their underwriting and claims processes to accommodate an increasingly electrified vehicle market.
According to GlobalData’s 2025 UK Insurance Consumer Survey, 42.1% of respondents expect to switch to a fully electric vehicle within the next five years. Meanwhile, data from the Society of Motor Manufacturers and Traders notes that UK battery EV registrations increased by 36.6% year-over-year to a record 99,201 units in September 2026, accounting for 28.3% of new car registrations. Plug-in hybrids also recorded strong growth, with electrified vehicles collectively accounting for 58.4% of registrations. This accelerating adoption introduces distinct exposure factors and considerations for motor insurers, including elevated battery diagnostic and replacement costs, specialist servicing requirements, and complex and costly repair procedures.
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As EVs account for a growing share of vehicles on UK roads, providers will need to ensure their pricing and claims capabilities reflect the different characteristics of EVs. Improving access to specialist repair networks and using more detailed vehicle-level data could help insurers assess claims costs more accurately and manage emerging risks. Those that adapt their underwriting and claims processes effectively will be better positioned to serve the expanding EV market.
