Choosing to buy an electric car has some obvious benefits, including the massive reduction in environmental impact, the lower cost of electricity compared to petrol or diesel, and the improvement in air quality in British cities. While electric cars currently have higher insurance costs due to intricate parts and the technology not yet being completely widespread, it is worth asking: if you have an electric car you are insured to drive privately, what will you need to do to use it for business?
Electric Vehicle Insurance
The Express points to high taxes, intricate parts, and the comparative rarity of electric cars nationally as reasons why electric car insurance is currently higher than either petrol or diesel cars. However, despite this, electric vehicles are also already cheaper to run than petrol or diesel cars and likely to get more so, so now is a good time to lead the charge to a much more environmentally friendly way of getting around. With that said, if you have bought insurance for your electric vehicle, whether third party, third party, theft and fire, or comprehensive, it is possible you will not be able to use this for business unless you have business insurance.
So, when do you need business car insurance? Business car insurance is not necessarily called for when you commute to and from work; it is a grey area among insurers, with some including it in private insurance and others considering it a business insurance matter. It is a tricky issue for which it can most definitely be worth going through a broker to find the right insurance provider who will do you the best deal for your commute. Commuting to and from a train station at the beginning and end of a day would fall into this grey category as well.
If your work involves a lot of motor travel, beyond commuting, then you will certainly have to find business insurance for your electric vehicle. Sectors including sales and the travelling trades, which expect you to spend several hours on the road have higher premiums because of your increased mileage, which brings an increased chance of wear and tear on the car itself (although electric cars suffer from this less than petrol cars, as their simpler engines which help with braking and their lack of brake pads mean they have fewer complicated components which can malfunction) or of an accident.
One downside the electric car would have in this situation is the risk of not being able to find a charging point and being stranded on the road network having run out of energy. A useful form of insurance that might solve most of these problems would be road risk cover, which would allow you to be fully covered against all dangers while driving, not only your own vehicle, but those belonging to customers or your company.
This can give freedom and flexibility and could be an option if you commute in an electric car but have to use a company owned petrol car to reach more obscure out of the way spots without electric charging points.