Why electric cars cost more to insure - and what's being done about it

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), EV sales have surged to the point that they made up almost one in every three new cars sold in the UK in June, external.

Ian Plummer, chief customer officer of car selling website Autotrader, says the rising EV demand is "driven by intensifying competition and rising consumer interest in plug-in cars".

However, he said "the wider context remains fragile, with ongoing uncertainty around policy, incentives, and wider external pressures".

The insurance cost is one of those niggling concerns that could put off would-be buyers.

"It's absolutely crucial electric vehicles become cheaper to insure," insists Steve Fowler, co-founder of the car review website Carblah.

"They are expensive – though not as expensive as some people might think – but by making them easier to repair and cheaper to insure, more people will buy them."

The issue, it seems, comes from the way many EVs are designed.

"There's a real focus on keeping weight down, because electric vehicles are heavy," says principal advanced technologies engineer Dan Harrowell.

"To save some weight, there's a lot of integration of components. They're glued together, rather than using fixings, which is great to reduce weight, but not great for repair, because you have to replace whole systems rather than individual components."

In a nearby workshop, a nearly-new model from a mainstream manufacturer is jacked up on a ramp.

This car was brought in following a relatively minor accident, and Harrowell points to a few scratches and scrapes on the protective casing of the battery underneath the car.

The core of the battery, containing the cells which provide power for the car, is unharmed. But because the whole assembly is supplied as a single unit, it would need to be replaced in its entirety for a full repair.

Given the battery makes up about 40% of the value of the whole car, replacing it would be too expensive.

"Damage to the battery is much less common, but the sheer value of it means any damage at all, if it involves a replacement, risks writing off the vehicle," he says.

Making batteries easier to repair might help solve this problem, although industry sources suggest insurers themselves have proved resistant to the idea.

The surge of Chinese EV makers coming into the UK market has also created a few headaches, Mr Horrowell adds.

Labour rates in China are much lower, which means there is little incentive to minimise the amount of work needed to mend a car. In Europe, labour costs are much higher, so the process of repairing a car needs to be simpler.

"We've had to work with them to really help them to understand the difference in our market," he explains.