The UK’s commercial motor market remains slow to shift toward electric vehicles, complicating efforts by insurers to control rising claim costs and manage shifting risk profiles.
Direct Commercial Limited’s latest Broker Barometer shows just 13% of brokers believe their clients are adapting effectively to electric or hybrid vehicles.
Meanwhile, 44% report minimal or no movement. Heavy goods vehicles (HGVs) continue to face major roadblocks, including limited vehicle supply, poor charging infrastructure, and range limitations.
Only 9% of brokers said clients appear somewhat ready for incoming sustainability rules, including the Government’s Zero Emission Vehicle (ZEV) Mandate. A quarter described clients as unprepared.
Although electric light commercial vehicles (LCVs) now make up about 7% of new registrations, they still hold a small share across total fleets. Insurers are also seeing higher claims costs.
Industry data shows EV insurance claims are generally 25–30% more expensive and slower to resolve due to battery part pricing, repair delays, and a lack of qualified specialists.
There is movement in LCVs, but in HGVs, the shift will take far longer to gather momentum. Brokers are telling us the same story across the board – fleets aren’t resisting the sustainability agenda, but the practical challenges are real.
Joe Hantson, deputy CEO at DCL
Insurers are adjusting commercial motor offerings to match the pressures fleet operators face during this shift. Key issues include mixed-fleet coverage, volatile repair pricing, and new regulatory risks.
Underwriting for commercial EVs remains in flux. High battery costs, repair complexity, and increased total loss exposure have made some models hard to insure. Brokers report reduced capacity for certain vehicles.
In response, some insurers are rolling out telematics-based pricing to better handle the mix of electric and combustion units.
As the ZEV Mandate tightens deadlines for van electrification, insurers must deliver adaptable products that reflect fleet realities. DCL expects brokers to remain central in helping clients navigate rising premiums and the broader shift toward electrified transport.
