Car Insurance - Rise of EVs Report
Car Insurance - Rise of EVs Report
Car Insurance - Rise of EVs Report
You’ve probably noticed by now that electric vehicles (EVs) are a lot more common on our
roads. No longer a novelty reserved for the eco-conscious, EVs are fast becoming
mainstream. While the phase-out of fossil fuel vehicles in the UK has been pushed back to
2035, it’s clear that the EV is here to stay.
As they get cheaper to make, buy and repair, you should also see lower prices when you
compare car insurance on an EV.
But which models have seen the most significant increase on UK roads over the last 5
years? And which parts of the country are embracing the change the quickest?
Annual registrations show how many new models were registered in the UK annually. Tesla
Model Y has the most annual registrations from 2022 to 2023, at 37,383.
Annual registrations
Average
annual
registrations
2019- 2020- 2021- 2022- (since 2019 or
Rank Model 2020 2021 2022 2023 release)
1 Tesla Model Y 7,738 37,383 22,561
2 Tesla Model 3 15,876 23,543 34,055 13,616 21,773
3 Volkswagen ID.3 5,490 12,674 10,400 9,521
4 Kia Niro 986 9,179 12,734 9,809 8,177
5 MG 4 8,149 8,149
6 Audi Q4 5,552 8,812 7,182
7 Nissan Leaf 5,525 7,013 8,019 6,643 6,800
8 Audi e-tron 1,718 6,522 7,391 6,008 5,410
9 BMW iX3 4,617 6,154 5,386
10 Jaguar I-Pace 4,180 7,601 5,285 4,027 5,273
1. Tesla Model Y
Average yearly increase: 22,561
2023 registrations: 37,383
Since its UK launch in 2022, the Tesla Model Y has become the popular choice for
consumers in the UK. The Model Y saw an average yearly increase of 22,561 licensed
models over the last 2 years. The Model Y is a mid-size crossover SUV that sits between the
Model 3 and X in size. In the first quarter of 2023, it sold more than the Toyota Corolla to
become the top-selling car worldwide.
2. Tesla Model 3
Average yearly increase: 21,773
2023 registrations: 13,616
You may be unsurprised to see second place taken by another Tesla. In the last 5 years, the
Tesla Model 3 had an impressive 21,772 average new registrations. Even though
registrations decreased last year, it continued to be a popular choice for British drivers. The
Model 3 is a large family car with a fastback body style and is among the more affordable
Tesla models.
3. Volkswagen ID.3
Average yearly increase: 9,521
2023 registrations: 10,400
Since its late 2020 launch, the Volkswagen ID.3 has proved popular, with an average of
9,521 new registrations. A small family car, the ID.3 is the first model of the ID. series and
has proved to be a hit with British drivers.
3. Redditch - 205.8%
Third place goes to Redditch, with a 205.8% average annual boost in the number of EVs
over the last 5 years. The number of EVs registered in the area has notably increased in the
last year, from 1,777 to 8,104.
Average
annual
increase in
Rank Local authority EVs
1 Stockport 851.3%
2 Forest of Dean 448.6%
3 Redditch 205.8%
4 Windsor and Maidenhead 174.5%
5 Wiltshire 112.8%
6 Chesterfield 107.8%
7 Harborough 98.1%
8 South Gloucestershire 95.4%
9 Warwick 86.9%
10 Rhondda Cynon Taf 85.4%
The top 3 are all located in London. Westminster leads with 1 public charging station for
every 95 residents. Southwark and Kensington & Chelsea follow with 1 for every 177 and
207 people.
Coventry leads the way outside the capital, with 1 for every 281 people. A more surprising
inclusion in the top ten is the Orkney Islands, with 1 charger per 442 people. While the
islands have a low population, they have a significant number of chargers for their size,
serving both tourists and locals.
1 public
charging
stations per
X
Rank Local Authority population
1 Westminster 95
2 Southwark 177
3 Kensington and Chelsea 207
4 Coventry 281
5 Hammersmith and Fulham 306
6 Merton 319
7 Brent 416
8 Orkney Islands 442
9 Wandsworth 453
10 Watford 490
Find out more about charging points in your area with our EV charging point map.
Which countries have seen EVs gain the most
popularity?
The average annual change in EV sales in the UK is 91.2% since 2017. While that's a solid
number, the country ranks 12th globally (for countries with sales data).
Brazil tops the list with a staggering 285.5% annual growth in EV sales. Israel and India
follow closely, with 281.8% and 183.4%, respectively.
Turkey and Greece stand out with annual growth rates of 165% and 140.1%, even though
they began with smaller EV markets.
China still leads the way for total EVs, with 4.4 million sold but an annual growth of just
68.6% since 2017. The US has an annual growth rate of 62.1% - trailing behind many
smaller nations.
Average
annual
change in
EV sales
Rank Country since 2017
1 Brazil 285.5%
2 Israel 281.8%
3 India 183.4%
4 Turkey 165.0%
5 Greece 140.1%
6 Mexico 133.2%
7 Denmark 127.0%
8 Australia 120.7%
9 Italy 109.2%
10 Poland 103.7%
“Many are drawn to electric vehicles, but switching to an EV comes with its own set of
challenges. The initial cost of the vehicle, along with the cost of insurance, are the main
barriers. While EV prices have been dropping, they’re often still more expensive than diesel
and petrol cars. And even though you might save on fuel and maintenance in the long run,
EV insurance can be an expensive initial cost.
“Due to their advanced technology, EVs can be more expensive for insurers to cover in case
of a claim. Their fast acceleration also increases the risk of an accident. Because of these
risks, not all insurance companies cover EVs. This means fewer choices and potentially
higher costs for consumers.
“But cost isn't the only concern. Many people considering EVs worry about how far they can
go before recharging, known as 'range anxiety.' Even though newer models are improving,
some consumers still have this concern. The number of charging stations, especially in rural
areas, is another challenge. Charging becomes an added hassle for those without a
driveway or garage.
“While the initial vehicle cost and that of insurance are vital considerations, it's good to see
that the landscape is evolving rapidly. Improvements in battery technology and increasing
charging points are making EVs more accessible. If you're concerned about charging
infrastructure and battery life, take a look at our electric car charging points map.”
Methodology
We used the vehicles at the end of the quarter by licence status, body type, make, generic
model and model: United Kingdom dataset from the Department for Transport and Driver
and Vehicle Licensing Agency’s vehicle licensing statistics data files to see which electric
models had the highest average growth in new registrations over the last 5 years.
To find the UK local authorities with the most growth in ULEVs, we used the licensed ultra
low emission vehicles (ULEVs) at the end of the quarter by fuel type, keepership (private and
company) and upper and lower tier local authority: United Kingdom data from the same
source. Again, an average annual increase across the last five years was taken.
We used the Department for Transport’s electric vehicle charging device statistics to show
the number of public charging devices for every 100,000 people in each local authority.
Similarly, we used the Department for Transport’s electric vehicle charging device grant
scheme statistics to show the amount granted by the Electric Vehicle Homecharge Scheme
(EVHS) in each local authority.
The annual change in EV sales in each country was sourced from the IEA’s Global EV Data
Explorer.