Electric vehicles carry insurance penalty

Following our discussion on the green credentials and life-costs of electric cars compared to classics another cost issue associated with electric vehicles has been revealed – insurance. HonestJohn.co.uk is calling on the government to scrap Insurance Premium Tax (IPT) for electric vehicles after it emerged that some EVs cost as much as 60 per cent more than their petrol-powered equivalents to insure.

The latest industry figures from January to June 2018 show that pure electric car registrations are down by more than three per cent compared to the first half of 2017. Data from the Society of Motor Manufacturers and Traders (SMMT) show that there were more than 1.2 million petrol and diesel cars registered between January and June 2018, yet just 7441 electric cars left showrooms over the same six months.

Electric vehicles carry insurance penalty

Electric vehicles carry insurance penalty

To make matters worse, it is young professionals – the target buyers for most EVs – being hardest hit, with some insurers demanding more than £1800 for 12 months’ cover.

HonestJohn.co.uk Managing Editor, Dan Powell, said: “The government itself holds the key. At present, it takes 12 per cent off every motor insurance premium in IPT. If it removed IPT from pure electric vehicles, then premiums would instantly drop and this would improve the incentive for buyers to swap their diesel or petrol for pure electric.”

As things stand though, motorists find themselves having to fork out extra to be green, and that’s being reflected in EV sales. The revolution is coming, but as we’ve said before, don’t ditch your classic car just yet.

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