The UK’s commercial motor sector is showing slow progress in adopting electric vehicles (EVs), with implications for insurers already navigating rising claim costs and evolving risk profiles.
According to the latest Broker Barometer from Direct Commercial Limited (DCL), just 13% of brokers said their clients were adapting well to electric or hybrid vehicles, while 44% reported limited or no progress. The findings point to particular difficulties in the heavy goods vehicle (HGV) segment, where barriers around vehicle availability, charging infrastructure and range remain unresolved.
Only 9% of brokers said their clients were somewhat prepared for incoming sustainability regulations, such as the Government’s Zero Emission Vehicle (ZEV) Mandate. Another 25% described operators as unprepared.
While electric light commercial vehicles (LCVs) account for roughly 7% of new registrations, they still represent a small share of total fleets and insurers are facing rising loss costs as a result. Research from industry bodies shows EV claims are typically 25% to 30% more expensive and take longer to resolve, largely due to the high cost of battery components, repair delays and limited availability of specialist repairers.
“There is movement in LCVs, but in HGVs, the shift will take far longer to gather momentum,” said Joe Hantson, deputy CEO at DCL. “Brokers are telling us the same story across the board - fleets aren’t resisting the sustainability agenda, but the practical challenges are real.”
DCL noted that insurers are increasingly focused on tailoring commercial motor products to reflect the operational pressures fleets face as they transition to new technology. This includes addressing the insurance implications of mixed fleets, fluctuating repair costs and evolving compliance risks.
Industry observers point out that UK insurers are still refining how they underwrite EVs, particularly for commercial use. Battery costs, repair complexity and total loss risks have made some vehicles unviable to insure, and brokers report tightening capacity for certain models. Some carriers have introduced telematics-based pricing to help manage risk across mixed fleets.
With the ZEV Mandate placing additional pressure on van operators to electrify, the insurance market faces a growing need to provide flexible solutions that align with real-world fleet conditions. Brokers are expected to play a key role in helping clients manage both transition risks and rising premiums as the market adjusts, the company said.
