Almost half the new cars registered in the UK last month plug in, and insurers are being warned that the shift is changing the claims picture faster than pricing may reflect.
New car registrations rose 12% to 350,536 in September, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). It was the tenth consecutive month of growth and the strongest September since 2017. The plate-change month typically accounts for around one in seven of the year's registrations.
Battery electric vehicles (BEVs) hit a record 99,201 units, up 36.3%, taking a 28.3% share of the market, five percentage points higher than a year earlier. Plug-in hybrids rose 55.5% to a record 17% share, while conventional hybrids fell 4.3% to 13.1%. In total, electrified vehicles accounted for a record 58.4% of registrations.
Together, BEVs and plug-in hybrids made up around 45% of the month's new cars. Fleet buyers registered 190,998 vehicles, more than half the market, while private demand rose 13.9% to 149,166.
For insurers, the significance lies in what sits inside those vehicles, according to Cormac Bradley, senior actuarial director at insurance consultancy Broadstone.
"Batteries, sensors, cameras and driver assistance systems can materially influence repair methods, costs and settlement times," said Bradley.
He said electrified vehicles were now approaching half of all cars entering the road network, and that the significance for insurers was not just their number but their different claims and repair characteristics.
The industry's own data shows the pressure on repairs is not easing. The Association of British Insurers (ABI) said motor insurers paid out a record £3.2 billion in claims in the second quarter, with the average claim up 4% to £4,900. Average premiums rose by just £6 to £566 over the same period.
Bradley warned that the timing was awkward. Motor premiums are softening while underlying repair costs remain under inflationary pressure, and he said insurers would need to make sure competitive pricing was backed by a thorough understanding of how vehicle technology was shaping claims frequency, severity and repair costs.
That tension has been building. Insurance Business has reported that UK motor prices look steady on the surface but are diverging underneath, while insurers have also struggled to price some newer EV models where repair data and parts supply remain thin.
The growth in EV registrations is being driven partly by discounts and the government's Electric Car Grant. That means many of these vehicles are newer models from manufacturers with limited UK repair networks, making the gap between sale price and repair cost harder to predict.
Despite the record month, the market remains behind government targets. BEVs have taken 26.2% of registrations so far this year, well below the 33% required under the 2026 Zero Emission Vehicle mandate, the SMMT said.
For brokers, particularly those handling fleet business, which made up more than half of September's registrations, the shift raises practical questions at renewal. Fleets adding EVs at pace may see claims severity rise even if accident frequency stays flat. Underwriters are likely to ask more about vehicle mix, charging arrangements and approved repairer access.
On the personal lines side, softer headline prices may not last for owners of newer, technology-heavy vehicles if insurers start pricing more closely to repair reality. Brokers who understand which models are expensive to fix will be better placed to explain premium movements when they come.
