John Lewis will no longer offer insurance to drivers of electric cars, amid concern around the cost of repairing the vehicles.
Speaking to The Telegraph newspaper a spokesperson for John Lewis Financial Services said: “Our underwriter has temporarily paused offering new policies and renewals on fully electric vehicles while they analyse the risks and costs entailed.”
A spokesperson for Association of British Insurers told the newspaper: “Our members fully support the roll-out of electric vehicles and efforts to transition to net zero. Whether to offer insurance, and at what price, is a commercial decision for insurers based on their risk appetite”.
The cost of insuring electric vehicles has also gone up elsewhere, with quotes from services such as Direct Line going as high as £5,000.
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According to Thatcham Research, the cost of repairing batteries in EVs can make them less economical than traditional petrol vehicles to repair.
Electric car sales have risen in the UK, with one in five new sold being fully electric or hybrid vehicles. The sale of electric vans has also increased.
However, the Prime Minister Rishi Sunak recently pushed back the date of the ZEV mandate from 2030 to 2035.
Following the ban, manufacturers expressed concern that the changes to EV rules will mean increased costs and impact the UK’s ability to meet its net zero costs.
CEO of transport group NewAutoMotive commented: “Pushing the ban on buying petrol and diesel cars back to 2035 is an abdication of leadership that motorists will pay the price for”
“It sets us back in the global race to develop green industries – a huge own goal by the UK.”
