Direct Line raises questions about electric car insurance

Direct Line has called for an open dialogue between insurers and the manufacturers of electric cars following the recent launch of
more electric models.

With more electric cars on the market, combined with government plans to begin installing charging points in some of the major cities and giving motorists up to £5,000 towards the cost of a new electric vehicle, greater clarity is needed on correct car insurance .

Concerns surrounding the insurance of the vehicles include the ownership of batteries, with some leased rather then owned and the disposal and price of the cells, which can cost up to £25 000.

Questions have also been raised about repairing the electric cars and the public liability of stray wires when vehicles are charged in public.

Andy Goldby, Director of Motor Underwriting at Direct Line, said: “The recent increase in new electric cars coming on to the market demonstrates how vehicle manufacturers are seriously looking at reducing the impact cars have on the environment . However, this fundamental change to the car market needs to take into account the need for robust insurance products, to enable drivers to be confident that they have the appropriate cover in place.”

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