Electric vehicle manufacturers 'should work closely with insurers'

Date: 10/1/2011

Providing insurance for a new generation of electric car owners could prove difficult, as some batteries are likely to be leased - rather than owned - due to their high value, it has been suggested.

Direct Line has claimed that this may lead to ownership issues and added that there is not currently an appropriate arrangement for disposal and salvage of the batteries, which are classed as hazardous waste.

In addition, the insurance provider has warned that the batteries may be seen as a target by thieves and the high value of the technology may even mean they are worth more than the combined cost of the vehicle in the event of an accident.

As a result, the firm called for a closer working relationship with vehicle manufacturers and for them to provide greater clarity on these issues.

Its request comes at a time when the government is planning to install more charging points in major cities.

Andy Goldby, Director of Motor Underwriting at Direct Line, said: "Manufacturers and those encouraging the increased use of electric-powered vehicles need to ensure that the entire infrastructure is in place to not just charge the batteries but repair them, dispose of them and reuse them."

His comments come after the Society of Motor Manufacturers and Traders announced that a Plug-In Car Grant worth up to £5,000 has been introduced to help UK motorists invest in low-carbon cars.

Posted by Nick Anderson