British drivers would receive between £2,000 (US$2,900) and £5,000 (US$7,300) as subsidies when they purchase electric or plug-in hybrid vehicles. This grant was announced by Transport Secretary Geoff Hoon as the government pushes for the use of electric cars in the country’s roadways.
Current statistics indicate that this market is an untapped area as there are less than 0.1% electric cars among the current registered vehicles in the UK. This though, has created a new area of concern that is the insurance coverage for these kinds of vehicles.
One fourth of the fixed costs of owning a car in the UK goes to insurance. Not many in the insurance industry offers electric car insurance and if a company does, its coverage is lower than the conventional internal combustion car coverage. This offer applies only if the electric car is the secondary vehicle of the family. Because of the increased safety features, electric car insurance also comes at a discount.
Because of the unique configuration of the vehicle, finding the right insurance coverage would be like looking for insurance on one of a kind or specific requirement coverage. It is thus imperative that your insurance company has knowledge on the workings of an electric car and the coverage requirements. Also important is the owner’s track record as a driver. There is a growing conclusion that electric vehicle owners are quite dependable and responsible. Also, make sure of the liquidity of the insurance company as it would be a problem if they were unable to satisfy your claim.
Another issue would be the cost of repairs for an electric vehicle. While this is a common concern for most insurances, the highly technical nature of the vehicle would surely drive repairs cost for the insurer. This would only be for the short term as the popularity of the vehicle increases, so would the cost of repairing the vehicle decrease. As this happens, the premiums of the electric car insurance coverage would certainly decrease along with the trend.