How are electric vehicles (EVs) likely to reshape the car insurance market in the next few years? How should you advise your clients around the use of EVs from an insurance perspective? In this episode of the Insurance Broker Podcast, we’re very pleased to be speaking with Steven Williams and Rob Durbin, who are both at the forefront of Direct Line Group’s evolving strategy for and assessment of the electric vehicle market. In this revealing and informative conversation with Boston Tullis’ Sarah Myerscough, Steven and Rob reveal the fallacies in many common beliefs about how electric vehicles work, and dispel many outdated notions regarding the safety and reliability of the technology. Furthermore, they explain how the insurance market must adapt in order to facilitate manufacturers’ rapid transition towards electric vehicles, in light of the impending ban on the manufacturing of ICE (Internal Combustion Engine) vehicles in the UK, in 2030. Listen now to hear their fascinating insights into this rapidly evolving market for both consumers and business owners.   Quote of the Episode ‘Cars are becoming computers on wheels.’ The technology behind EVs is extraordinary, and has undergone rapid evolution since these vehicles were introduced to the mass market around ten years ago. As such, there remain some prevailing myths regarding the safety and efficiency of these vehicles. Fears of the car battery losing charge and anxieties about not being able to find a charging station whilst on the road continue to prevent many drivers from taking the leap to electric vehicles. Yet, at full charge, most new EV releases are capable of running for 200 miles or more. Most drivers, especially post-pandemic, don’t travel all that much, and therefore this mileage capacity is more than sufficient. Nonetheless, the EV industry isn’t without its growing pains.   Key Takeaways Electric vehicles are an emerging risk. They are relatively new to the market, at least on a wide scale, as they work very differently from ICE vehicles. While the electric vehicle market is the only motor market that grown in the last 18 months, there remains a generalised perception that they are hugely expensive. This is compounded by the costs of insurance, which are particularly high for electric vehicles. A key reason for this is due to the fact that, in the event of an incident causing damage to the car battery, it will be immediately decommissioned. An EV battery can be worth as much as 75% of the cost of the vehicle. Consequently, insurers face higher claims costs if and when EVs are involved in accidents, leading to higher premiums for customers to pay. Nonetheless, EVs are undoubtedly safer than ICE vehicles, and they typically include many advanced safety features to significantly reduce the risk of accidents on the road. This technology undoubtedly presents great opportunities for manufacturers, insurers and consumers alike, with advancements in vehicle safety and efficiency and improvements in the speed of insurance resolutions already underway. Yet, there are still great costs to account for. However, there are alternative methods for becoming an EV driver available. New ‘usership’ models are currently being developed, which mirror the basic premise of a subscription service, by which you play a fixed monthly fee, including maintenance costs, insurance and tax, for access to an EV. This new market is experiencing a significant buzz, enabling drivers to use these environmentally friendly vehicles at a much lower cost overall and at great convenience. Salary sacrifice schemes are also available, granting companies a more affordable means of granting their employees access to an EV fleet. There remain a lot of unknowns in the EV world. While the car insurance industry has decades of history with ICE vehicles, we have only 10 years of data and understanding to inform decision-making about electric vehicles. As such, insurance professionals are