The world as we know it is changing. Nations across the globe are becoming more conscious of the need to do more to reduce our carbon footprints.
That has a knock-on effect on the UK auto industry too, with targets needing to be met to increase the number of electric vehicles in circulation and lessen the sale of petrol and diesel cars.
With that in mind, here is how electric vehicles are revolutionising the UK auto industry with gap insurance support.
Introduction to the growing EV market in the UK
The UK government has targeted a ban on the sale of new petrol cars by 2030 and hybrid cars by the year 2035.
Furthermore, earlier in 2023 it was announced a new £381 million Local Electric Vehicle Infrastructure fund would be introduced and a further £15 million for the on-street residential charging scheme. It is hoped the extra revenue will help the installation of tens of thousands of new chargers to help with increased demand for electric vehicles in the UK.
Indeed, that demand is already growing exponentially. By June 2023 there were 810,000 fully electric cars on the roads in the UK, with an additional 510,000 plug-in hybrids.
Among the most popular EV cars are the Tesla Model 3, the Nissan Leaf, and the BMW i3.
Advantages and challenges of owning an EV
There are plenty of advantages to owning an electric vehicle, not least the environmental benefits with a significant reduction in harmful pollutants and using less fuel.
Additionally, the cost benefits are hugely advantageous. You will not need to pay for fuel or pay for congestion charges in areas that enforce them.
Electric vehicles obviously lessen noise pollution and have increased resale value.
There are some hurdles to overcome such as limited battery range, worries over charging infrastructure, concerns over charging times, and low top speeds. But the technology is improving all the time.
Role of gap insurance in supporting EV owners
If you own one of the more popular models, then you may want to consider extra protection such as Tesla, Nissan or BMW gap insurance.
Gap insurance provides additional cover on top of a standard policy if you car is totalled or stolen. Gap insurance will cover the total difference of the current value of your vehicle and whatever you still owe on the your or lease, something you would pay yourself without it.
Such coverage aspects are specific to electric vehicles too, such as batter degradation protection. It is particularly important to have comprehensive coverage for expensive electric vehicle components.
Benefits of having gap insurance for EVs in the UK
Gap insurance offers financial protection against total loss or theft of your electric vehicle.
And, as previously mentioned, covers the cost difference between its purchase price and its market value over time.
It is especially useful to have if you took out a loan or lease to acquire your electric vehicle.
This advice is particularly important in the wake of Tesla lowering the price of Model 3s, which in turn has driven down the price of used electric vehicles and risks leaving people in negative equity with recently bought electric vehicles.
