Novo, one of the UK’s premier electric car insurance specialists, recorded a surge of 262 percent in electric vehicle (EV) insurance enquiries from the first quarter of 2021 to the first quarter of 2022. This resulted in policy conversions increasing by 189 percent in the same period. This shows there is a growing demand for electric vehicle-specific policies that are tailored specifically to zero-emissions driving.
As a result, the company has continued to invest in its comprehensive fleet of prestige electric courtesy cars. The company has added further 40 premium marque electric cars to its fleet to meet the rapid growth in demand for its tailored electric vehicle insurance solutions.
This is just the first phase of a strategic expansion plan which will see Novo’s electric vehicle fleet double in size over the next 12 months. With more electric cars registered in the UK during 2021 than in the previous five years combined, demand for electric vehicle insurance has risen sharply. This is a trend that is set to continue.
Market data from the Society of Motor Manufacturers and Traders (SMMT) substantiates this demand for electric cars. The SMMT reveals that a total of 190,727 battery electric vehicles (BEVs) hit UK roads in 2021, claiming 11.6 percent share of the overall new-car market. In April 2022, electric car registrations represented 10.8 percent of all new car registrations in the UK.
The SMMT predicts that by the end of 2022, plug-in cars including BEV and PHEV models, will account for a quarter of all new vehicle registrations, of which one in six is expected to be fully electric.
As the UK’s first provider of specialist electric car insurance solutions, with a focus on sports and prestige vehicle cover, this data is driving Novo’s strategy for continual investment and expansion of its extensive electric fleet. Some of the most recent fleet additions include the Tesla Model Y, Mercedes EQA and EQB, as well as Audi eTron GT, with more high-value vehicles scheduled to arrive over the course of the year.
With the average repair time being in excess of 45 days, Novo’s like-for-like pledge is especially important to company car drivers. It is not unusual for insurers to replace an electric car with a fossil-fuelled courtesy vehicle. This can lead to potential benefit-in-kind (BIK) charges of over £500 per month and additional fuel costs. It can be a costly situation on many levels, for the driver personally, and for the company reputation when trying to promote an ‘eco-friendly’ image.
These are important issues to remember when shopping for electric vehicle insurance. As always it pays to shop around and do your homework, especially when it involves the specific needs of electric car drivers and potential courtesy cars.
James Allenby, Novo founder and director, said: “It is an exciting time for the EV sector, and we are delighted to be supporting owners, the environment, and the car industry, during this fast-paced electric journey. The statistics for EV transition speak for themselves, and this trend is only going to increase.
“We are ahead of the curve with our EV fleet and our specialist service offering, and it is why we are committed to continual fleet investment to cater for this rapid growth in demand. Novo is not about blending in with the industry, we aim to stand out through a very niche, highly customised and personal service.”