The continued rise of alternative fuelled vehicles

As we drive towards 2030 and the ban of new petrol and diesel vehicles, it is important that we, as an insurer, understand the challenges (and possibly benefits) that this might bring to us and consumers.

The first and most obvious benefit of alternative fuelled vehicles is our eventual move towards cleaner air and reduced air pollution.

There is also the significant reduction in fuel costs with electricity working out much cheaper than petrol or diesel per mile.

Also, if like us, you have been impacted by the recent fuel ‘shortages’ then we’re sure that you were also looking on enviously at the neighbours with their worry free electric cars!

Servicing of electric cars can also be cheaper and quicker with less moving parts compared to traditional combustion engine cars.

So what about the challenges?

It is clear that when using an electric car, you need to be organised and plan ahead and it is not always easy to find an available charging point when needed. But with specific apps available to help with this, it soon becomes second nature.

When it comes to repairing alternative fuelled vehicles, it is certainly the case that not all traditional garages or bodyshops will be able deal with the repairs. Often, repairs will require specialist training and equipment to ensure that they meet manufacturer’s requirements.

For this reason, when claims are reported to us, whilst customers have the option to select their own repairer, we always make sure that we identify any special requirements and recommend a repairer that can fulfil these. Whilst this may often result in vehicles going back to dealer approved garages, it’s essential that repairs are carried out correctly.

As well as managing claims effectively and efficiently, we have also ensured that our policy wording remains focused on providing the covers that are important to our customers.

As you may have seen, following our product refresh in May this year, we became one of the few insurers to provide specific cover for electric vehicles.

Not only will we provide an electric vehicles as a courtesy car when required, we also provide cover for alternative transport costs when customers have been unable to charge their cars following an interruption to their power supply, giving customers peace of mind that they can get to where they need to go without incurring additional expense.

E5/E10 Petrol

Whilst talking about alternative fuels, you may have seen information in the press regarding a switch from E5 to E10 petrol and may be wondering what this means for you and your customers.

The E5 petrol previously sold in the UK contains no more than 5% ethanol. E10 contains twice as much. Whilst this means it is better for the environment, it may cause issues for some older cars.

All cars manufactured since 2011 are E10 compatible but many older cars are not.

However, it’s important to note that a few tanks of E10 in a car is not likely to cause any damage. It will only be an issue if drivers continue to use the incorrect fuel for a prolonged time.

In view of the above, it should be noted that if a customer accidently fills up with E10 rather than E5, this will not be covered under our misfuelling section. This is because there will be no damage at all as a result of this.

If a customer uses E10 rather than E5 over and over and this results in damage to their vehicle, again, this will not be covered under our miisfuelling section of cover as it was not due to a single incident but a gradually operating cause.