Electric vehicles can still save many fleets money over time. But there is one cost that can be higher than expected: insurance. On average, EV insurance claims can be around 15-20% higher than claims for similar petrol or diesel vehicles. In the UK, EV insurance can also be about 10-15% more expensive than petrol car insurance, although the gap is smaller than it was in 2024.

For fleets that already use EVs, or plan to, the issue is not whether EVs can be cheaper to run. Research on UK fleet costs shows they often are, once fuel, servicing and tax savings are included over a typical three-to four-year contract. The bigger question is how to stop higher insurance costs from reducing those savings.

Why do EVs cost more to insure? 

EVs usually cost more to insure because repairs can be more expensive when something goes wrong: 

• The battery is one of the most expensive parts of an EV. It can make up 30–50% of the vehicle’s total value. Even small damage underneath the vehicle can lead to costly checks or, in some cases, a write-off. 
• EV repairs often need trained technicians and approved repair centres. This can make repairs slower and more expensive than repairs for petrol or diesel vehicles. 
• Many EVs also have a higher vehicle value. This can increase the amount insurers need to cover. Some models can also accelerate quickly, which may increase risk and put them in a higher insurance group. 

But these costs are not fixed. They are linked to risk.  

Where telematics can help 

This is where electric vehicle telematics can help. If a driver brakes harshly, corners too quickly or drives at speeds that increase battery use and crash risk, this can contribute to road incidents and EV claims. With telematics, fleets can see this behaviour and coach drivers before it becomes a bigger problem. 

Telematics can also help fleets look after the vehicle itself. Battery damage can be very expensive, so it is better to spot a problem early. Real-time data on battery health and vehicle condition can help fleets fix issues before they turn into costly claims. 

For fleet managers, EVs can still be a strong financial choice. But to protect the savings, fleets need good data on their vehicles and drivers. Telematics can help them keep the EV savings on track.