Rising insurance premiums deter UK consumers from switching to electric vehicles despite growing interest in cleaner transport.
UK consumers are increasingly hesitant to adopt electric vehicles (EVs) due to soaring insurance costs, according to survey data. A 2025 survey found 42.1% of UK consumers plan to switch to fully electric vehicles within five years, up from 36.8% in 2024. However, higher insurance premiums remain a key deterrent for many, threatening to slow adoption rates.
Insurance costs for EVs continue to outpace those for petrol and diesel models, driven by expensive battery components, higher repair costs, and limited specialist repair capacity. These structural pressures keep claims costs elevated, even as insurers refine pricing models and expand repair networks. Without relief, insurance affordability could become a major constraint on EV uptake.
The findings underscore the challenge for insurers to balance risk pricing with supporting the transition to cleaner transport. Industry data shows EVs remain significantly more expensive to insure, complicating efforts to accelerate adoption despite rising consumer interest.