The British Insurance Brokers’ Association (BIBA) has partnered with NOVO Insurance to introduce a bespoke motor insurance scheme for electric vehicles (EVs) in the UK.
The scheme, exclusive to BIBA members, seeks to address specific challenges in policy coverage for EV owners and brokers.
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It offers features such as a like-for-like replacement mobility service and access to a nationwide network of EV repair specialists.
The EV insurance also includes a collaboration with a key EV claims management provider to deliver expert support during the claims process.
BIBA stated that NOVO Insurance has invested in a dedicated fleet of replacement EVs and a selection of manufacturer-approved repairers to enhance the claims support chain.
BIBA head of technical services Mike Hallam said: “Electric vehicles have rapidly gained popularity in recent years, presenting unique insurance challenges due to their advanced technology and specialist repair requirements.
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By GlobalData“Traditional insurance policies often fall short in providing adequate coverage and support for EV owners and brokers, especially at the point customers need their policy the most, after an accident. This scheme will provide BIBA members with a solution for this growing sector of the market.”
Despite the growing popularity of EVs, insurance premiums have been a significant barrier.
Earlier this year, Bloomberg, citing Howden Group Holding, reported that UK drivers pay twice as much to insure EVs compared to internal combustion engine cars.
The average insurance premium for EVs surged to £1,344 at the end of 2023.
The high costs are attributed to more expensive repairs, longer workshop stays, and a scarcity of mechanics qualified to repair EV batteries.
In related automotive insurance developments, HSB, a division of Munich Re, recently unveiled ‘Cyber for Auto’, a new cyber insurance product designed to protect personal data in connected vehicles.
This coverage aims to secure private information against the risks posed by cloud and wireless communication technologies in personal vehicles, addressing the potential threat of cyberattacks on the increasingly prevalent connected car technologies.
