Insurance firm issues warning over electric cars

Tue, 11 Jan 2011

A leading car insurance provider has called for greater clarity from vehicle manufacturers on a number of issues surrounding electric vehicles .

Direct Line Car Insurance's plea comes after the recent launch of more electric car models combined with government plans to begin installing charging points in some of the major cities and giving motorists up to £5,000 towards the cost of a new electric vehicle .

Insuring the new generation of proposed electric cars will be problematic, according to Direct Line, as some batteries will be leased rather than purchased.

This in turn will lead to ownership issues while there is also not yet the appropriate disposal and salvage arrangements in place for batteries, which would currently be classed as hazardous waste.

"The recent increase in new electric cars coming on to the market demonstrates how vehicle manufacturers are seriously looking at reducing the impact cars have on the environment," explained Andy Goldby, director of motor underwriting at Direct Line.

"However, this fundamental change to the car market needs to take into account the need for robust insurance products, to enable drivers to be confident that they have the appropriate cover in place." 
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