Electric Van Insurance in the UK What You Need to Know

As an FCA-authorised expert broker, WeCovr has arranged over 800,000 insurance policies for drivers across the UK. This guide explores the essential details of insuring an electric commercial van, helping you navigate the costs, find the right cover, and make an informed decision for your business.

WeCovr explores the cost, cover, and incentives for insuring electric commercial vans

The hum of an electric motor is fast becoming the new soundtrack of British business. Spurred on by Clean Air Zones, rising fuel costs, and a collective drive towards sustainability, UK businesses are switching to electric vans at an unprecedented rate. According to the latest data from the Department for Transport (DfT) and the Driver and Vehicle Licensing Agency (DVLA), the number of battery-electric light commercial vehicles (LCVs) on UK roads has surged, reflecting a clear shift in commercial transport.

While the benefits of going electric—lower running costs, tax incentives, and a greener brand image—are compelling, a critical question remains for every sole trader and fleet manager: what about the insurance?

Insuring an electric van isn't quite the same as insuring its diesel counterpart. It involves new considerations, from battery cover to specialist repairs. This comprehensive WeCovr guide breaks down everything you need to know to get the right cover at a competitive price.

Understanding Your Legal Obligations: Van Insurance in the UK

Before diving into the specifics of electric vans, it's vital to understand the fundamental legal requirements for motor insurance in the UK.

Under the Road Traffic Act 1988, it is a criminal offence to use, or permit others to use, a vehicle on a public road without at least third-party insurance. This applies to every van, whether electric, petrol, or diesel.

The three main levels of cover are:

1. Third-Party Only (TPO): This is the minimum legal requirement. It covers injury or damage you cause to other people, their vehicles, or their property. It does not cover any damage to your own van or injuries to yourself. For a valuable commercial asset like an electric van, TPO is rarely sufficient.
2. Third-Party, Fire and Theft (TPFT): This includes everything in TPO, plus cover for your van if it is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes everything in TPFT, but crucially, it also covers damage to your own van, regardless of who was at fault. It often includes other benefits like windscreen cover as standard.

Business Use Is Essential

For a commercial van, you must have the correct class of business use on your policy. Insurers typically offer:

• Carriage of Own Goods: For tradespeople like plumbers, electricians, or builders who carry their own tools and equipment.
• Haulage: For drivers who deliver single loads or collections over long distances for a set fee.
• Courier / Hire and Reward: For multi-drop delivery drivers carrying other people's goods in exchange for payment. This is often seen as higher risk due to high mileage and time pressures.

Failing to have the correct business use class can invalidate your motor policy, leaving you personally liable for all costs in the event of an accident.

Is Electric Van Insurance More Expensive Than Diesel?

This is the million-dollar question for many business owners. Historically, electric vehicle insurance has carried a premium. However, the market is maturing, and the price gap is narrowing significantly.

Several factors have traditionally made electric van insurance more costly:

• Higher Purchase Price: Electric vans generally have a higher list price than their diesel equivalents, increasing the potential payout for an insurer in the case of a total loss (write-off).
• Specialist Repairs: Repairing an EV requires technicians with specific high-voltage training and specialised diagnostic equipment. This can make labour costs higher and restrict the network of approved repairers.
• Battery Cost and Complexity: The battery pack is the single most expensive component. Even minor damage to the battery housing can sometimes lead to a full, and very expensive, replacement. In some cases, insurers may deem the vehicle a write-off where a diesel equivalent might have been repairable.
• Longer Repair Times: As the supply chain for EV-specific parts matures, there can sometimes be delays in sourcing components. This increases the time a courtesy vehicle is needed, adding to the insurer's costs.

However, the tide is turning. Insurers are now pricing in factors that make electric vans a lower risk:

• Driver Profile: Data suggests that early adopters of EVs tend to be more risk-averse and exhibit safer driving habits.
• Automatic Transmission: All EVs are automatic, which can lead to a smoother (and some argue safer) driving style, with no risk of clutch or gearbox damage from misuse.
• Built-in Telematics: Many electric vans come with sophisticated onboard telematics systems that track driving behaviour, location, and vehicle health, providing a wealth of data that can lead to lower premiums for safe drivers.
• Market Competition: As more mainstream and specialist insurers enter the EV market, increased competition is helping to drive down prices for consumers.

Cost Factor Comparison: Electric vs. Diesel

The WeCovr Verdict: While you may still find a small premium for some electric models, the total cost of ownership—factoring in fuel, tax, and maintenance savings—often makes the electric option more economical overall. Using an expert broker like WeCovr is the most effective way to compare the market and find insurers who specialise in and accurately price electric van policies.

Key Policy Features Unique to Electric Van Insurance

When insuring an electric van, you need to look beyond the standard policy features. The best motor insurance provider will offer specific cover for EV components.

Here’s what to check for in the policy wording:

1. Battery Cover

The battery is the heart of your van. Your policy should explicitly state how it's covered.

• Owned Batteries: If you own the battery outright, ensure it's covered for accidental damage, fire, and theft as part of the vehicle's total value.
• Leased Batteries: Some manufacturers used to offer a battery lease model. If this applies to you, you must inform your insurer. The policy needs to cover the vehicle's shell, while the battery itself remains the property of the finance company, which will have its own insurance requirements.
• Damage vs. Degradation: Standard policies cover damage from an accident but will not cover natural battery degradation (the gradual loss of range over time).

2. Charging Cable and Equipment Cover

Charging cables are valuable and susceptible to damage or theft.

• Accidental Damage: Look for cover if you accidentally drive over your cable.
• Theft: Cables are often stolen for their copper content. Check that your policy covers theft of the cable both from your home and at public charging points.
• Wall Box Chargers: Some comprehensive policies extend cover to your home wall box charger for accidental damage.

3. Public Liability at Charging Points

A unique risk is someone tripping over your charging cable while it's connected in a public car park. A good policy will include liability cover for injury or damage caused in this scenario.

4. EV-Specific Breakdown Assistance

Standard breakdown cover may not be enough.

• Out-of-Charge Recovery: Does the policy include recovery if you run out of battery? This is the EV equivalent of running out of fuel. The RAC estimates that around 4% of their EV call-outs are for flat batteries.
• Specialist Recovery: Electric vans often need to be recovered by a flatbed truck rather than being towed, to avoid damaging the electric motor and drivetrain. Ensure your breakdown service is equipped for this.

5. Courtesy Van Provision

If your van is off the road for repairs, a courtesy vehicle is essential.

• Like-for-Like Replacement: For a business operating in a ULEZ or CAZ, being given a diesel courtesy van could be disastrous, potentially leading to daily charges or fines. Check if your policy guarantees an electric courtesy van. If not, this is a crucial point to discuss with your broker.

How Your Electric Van Insurance Premium is Calculated

Insurers use a wide range of data points to calculate your premium. Understanding these factors can help you identify areas where you might be able to make savings.

Vehicle-Specific Factors

• Insurance Group: All vehicles are assigned an insurance group from 1 (cheapest) to 50 (most expensive). This is based on price, performance, security, and repair costs. High-performance electric vans like the Ford E-Transit Custom will be in a higher group than a smaller Citroën e-Berlingo.
• Value: The higher the van's value, the more it will cost to insure.
• Performance: Faster acceleration can place a van in a higher risk category.
• Security: Factory-fitted alarms, immobilisers, and tracking systems approved by Thatcham Research will help reduce your premium.

Driver and Business Factors

• Driver's Age and Experience: Younger, less experienced drivers always face higher premiums.
• Driving History: A long, claim-free history, demonstrated by a No-Claims Bonus (NCB), is one of the most significant ways to lower your costs.
• Convictions: Any driving convictions (e.g., speeding points) will increase your premium.
• Your Postcode: Premiums are higher in areas with more traffic, theft, and accident rates.
• Parking: Where the van is kept overnight makes a difference. A locked garage is the lowest risk, followed by a private driveway. On-street parking is the highest risk.
• Annual Mileage: The more you drive, the higher the statistical chance of an accident. Be realistic with your estimate.
• Business Use: As mentioned, courier work is priced higher than carrying your own tools due to higher mileage and time pressures.

Policy Factors

• Level of Cover: Comprehensive is usually the best choice.
• Voluntary Excess: This is the amount you agree to pay towards any claim, in addition to the compulsory excess set by the insurer. A higher voluntary excess can lower your premium, but make sure you can afford to pay it if you need to claim.
• Named Drivers: Adding an experienced driver with a clean record can sometimes lower the premium, but adding a young or inexperienced driver will increase it significantly.

Strategies for Managing and Insuring an Electric Van Fleet

For businesses managing multiple vehicles, a fleet insurance policy is often the most efficient and cost-effective solution.

Benefits of Fleet Insurance:

• One Policy, One Renewal Date: Drastically reduces administration time compared to insuring each van individually.
• Cost Savings: Insurers often provide discounts for insuring multiple vehicles under one policy.
• Flexibility: Allows any authorised employee to drive any vehicle in the fleet (subject to policy terms).
• Mixed Fleets: A fleet policy can easily cover a mix of electric vans, diesel vans, and company cars, simplifying your transition to an all-electric fleet.

As an experienced broker in the fleet sector, WeCovr can source highly competitive fleet policies that are tailored to the specific needs of a modern, mixed-energy fleet.

Key Fleet Management Strategies for EVs:

1. Embrace Telematics: Use the data from your electric vans to its full potential. Monitor driver behaviour (speeding, harsh braking, acceleration), track vehicle efficiency, optimise routes, and identify training needs. Many insurers offer significant premium reductions for fleets that use telematics effectively for risk management.
2. Implement EV Driver Training: Driving an electric van is different. Training should cover:
   • Regenerative Braking: How to maximise range by driving smoothly.
   • Charging Etiquette: Best practices for home and public charging.
   • Understanding Range: How payload, weather, and driving style affect the available range to avoid 'range anxiety'.
3. Conduct Robust Risk Assessments:
   • Charging Safety: Ensure all charging stations are professionally installed and regularly inspected. Have clear procedures to minimise trip hazards from cables.
   • Secure Parking: As with any commercial vehicle, secure overnight parking is paramount to prevent theft of the van or its contents.

Top 10 Tips for Cheaper Electric Van Insurance

1. Shop Around Using a Broker: The market is complex. A broker like WeCovr does the hard work for you, accessing deals from specialist insurers that aren't always available on comparison websites.
2. Pay Annually: Paying for your policy in one lump sum avoids interest charges that are applied to monthly payment plans.
3. Build Your No-Claims Bonus (NCB): Each claim-free year adds a discount, often up to 60-70% after five years. Protect it if you can.
4. Increase Your Voluntary Excess: If you are confident you can afford it, offering to pay a higher excess can reduce your upfront premium.
5. Improve Security: Fit a Thatcham-approved alarm, immobiliser, or GPS tracker. Even simple measures like a steering wheel lock can act as a deterrent.
6. Limit the Drivers: Restrict the policy to only essential, experienced drivers with clean records.
7. Be Accurate with Mileage: Don't guess. Overestimating your annual mileage means you're paying for risk you aren't exposed to.
8. Choose Your Van Wisely: Before you buy, research the insurance group of the models you're considering. A van in a lower group will always be cheaper to insure.
9. Combine Policies: When you arrange your motor insurance UK policy with WeCovr, ask about discounts on other business cover you might need, such as public liability, tools in transit, or goods in transit insurance.
10. Install a Dash Cam: A dash cam provides irrefutable evidence in the event of a non-fault accident, protecting your NCB and helping insurers recover costs from the at-fault party. Many insurers now offer discounts for their use.

The Claims Process: What to Do After an Accident

Being in an accident is stressful, but knowing the correct steps to take can protect you and your business.

1. Stop Safely: Stop the vehicle as soon as it is safe to do so. Turn off the ignition and switch on your hazard lights.
2. Check for Injuries: Check on yourself, your passengers, and anyone else involved. Call 999 immediately if anyone is injured or the road is blocked.
3. Do Not Admit Fault: Do not apologise or accept blame at the scene, as this can be used against you later.
4. Exchange Details: Swap the following details with the other driver(s):
   • Name, address, and phone number
   • Vehicle registration number
   • Their insurance company details
5. Gather Evidence:
   • Take photos of the scene, the positions of the vehicles, and the damage to all vehicles involved.
   • Get the names and contact details of any independent witnesses.
   • Make a note of the time, date, weather conditions, and what happened.
   • Save the footage from your dash cam.
6. Report to Your Insurer: Contact your insurance company or broker as soon as possible, even if the damage is minor and you don't intend to claim. Your policy requires you to do so.

EV-Specific Claim Actions:

• When calling for recovery, state clearly that it is an electric vehicle. This ensures they send the correct type of recovery truck.
• Never attempt to touch or tamper with any of the high-voltage orange cables or damaged battery components.

A claim will likely result in the loss of some or all of your No-Claims Bonus (unless it's protected) and an increase in your premium at the next renewal. However, a non-fault claim, where your insurer recovers all costs from the third party, should not affect your NCB.

Frequently Asked Questions (FAQs)

Is electric van insurance a legal requirement in the UK?

Yes, absolutely. Under the Road Traffic Act 1988, every vehicle used on public roads in the UK must have, at a minimum, Third-Party Only motor insurance. This law applies equally to electric, diesel, and petrol vans. Driving without valid insurance can lead to severe penalties, including a large fine, points on your licence, and even disqualification.

What is the main difference in cover for an electric van compared to a diesel one?

The primary difference lies in cover for components unique to an electric vehicle. A specialised electric van policy should include specific provisions for the high-value battery (covering damage in an accident), charging cables (for theft or damage), and sometimes even your home wall box charger. It's also crucial to check if breakdown assistance includes recovery for running out of charge and if a courtesy vehicle will be an electric model to comply with Clean Air Zones.

Can I transfer my no-claims bonus from a diesel van to an electric van?

Yes, in almost all cases. Insurers will allow you to transfer your No-Claims Bonus (NCB) from a previously insured van, whether it was diesel or petrol, to your new electric van. Your NCB is one of the most significant factors in reducing your premium, so it's vital to ensure it is correctly applied to your new motor policy.

How can a broker like WeCovr get me a better deal on my electric van insurance?

An expert broker like WeCovr provides value in three key ways. Firstly, we have access to a wide panel of insurers, including specialist providers who understand the specific risks of electric vans and price them accurately. Secondly, our expert advisors can guide you through the process, ensuring you have the right cover for your specific needs, such as battery and cable cover. Finally, we do all the comparison work for you, saving you time and hassle while finding a competitive price for the right vehicle cover.

Ready to power up your business with an electric van? Ensure you're protected with the right insurance.

Get a competitive electric van insurance quote from WeCovr today. Our FCA-authorised experts will compare policies from a panel of leading UK insurers to find you the best cover at no extra cost.