Insurance shock for EV motorists as premiums rise 150%

Tower hikes blamed on increased costs and issues with shipping

The Island's biggest insurer has hiked electric vehicle premiums by 150 percent.

Tower, based in Douglas, says it follows a market review and will be with immediate effect.

The company cites increased claims costs and issues with salvage and shipping.

A Tower spokesman told Manx Radio that while the increase is significant it is necessary to cover spiralling costs associated with EVs. 

The requirement to send many vehicles off Island for repairs and a tightening of the criteria for shipping EVs by the Steam Packet Company are key factors behind the company’s decision.

Cars being shipped to the UK for repair travel unaccompanied which significantly increases costs further.

Tower says it fully understands the Steam Packet's conditions, and additional safety requirements, and has been holding discussions with the company, the Department of Infrastructure and the Vehicle Test Centre in a bid to resolve some of the issues surrounding EVs on the Island.

Tower told Manx Radio it could have chosen to walk away from EV cover entirely but is acutely aware of its responsibility to support government's environmental strategy.

Insuring EVs is a growing problem throughout the UK with many companies exiting the market.

The latest to announce it would no longer provide EV insurance is the John Lewis Partnership.

Statistics from Confused.com show EV insurance premiums have risen over 72 percent in the past year with the average cost nudging £1,000.