Swift Car Leasing: Paving the Way for a Prompt Electric Vehicle Adoption?
In the ever-evolving world of electric vehicles (EVs), the Motability scheme, a UK-based initiative that provides mobility solutions for disabled individuals, has been adapting to the shift. The scheme offers comprehensive insurance packages for EVs, which are included as part of the lease agreement, removing the need for separate insurance purchases [1][3][5].
However, when it comes to drivers with a history of alcohol or drug convictions, the specifics of how insurance providers manage risk within the Motability scheme remain unclear. Generally, insurance under Motability is arranged for approved users who meet the scheme's eligibility criteria, which include qualifying mobility allowances rather than criminal or driving conviction history [1][3].
In the broader insurance sector, alcohol and drug convictions can significantly influence risk assessments, often resulting in higher premiums or refusal of coverage, depending on the insurer’s underwriting policies and the severity of convictions [4]. It's important to note that this pertains mainly to general road safety rather than specific insurance practices within disability schemes.
Recent developments in the insurance sector include refunds due to the coronavirus pandemic. AXA in Ireland has announced a refund of approximately 33 euros to each of their car insurance policyholders, following a similar move by Admiral in the UK [2]. The total cost of the refund by AXA is approximately 20 million euros.
As the UK car industry continues to make strides in reducing emissions and increasing investment in EVs and clean energy, the Motability scheme presents a significant opportunity for the insurance sector. With around 1 in 5 new cars now given away on the Motability benefits scheme, the industry can underwrite cover on EV drivers, many of whom may have alcohol or drug convictions [6].
The growing supply of electric vehicles in the leasing sector is also seen as a big opportunity. The advent of automated cars is another promising development on the horizon for disabled drivers.
In the first half of this year, the Battery Electric Vehicle (BEV) share in the UK hit 21.6%, with expectations of increased enquiries for EV vehicles across the year [7]. Affordable options for purchasing or renting a pure electric vehicle are now available from Chinese car brands like Jaecoo, Omodo, and BYD [8].
Mike Thompson, Chief Operating Officer at Leasing Options, recently commented on the SMMT's Automotive Sustainability Report, highlighting the potential of the EV market and the role of Motability in driving its growth [9]. As we move towards a more sustainable future, the Motability scheme continues to play a crucial role in providing mobility solutions for disabled individuals, while also presenting opportunities for the insurance and automotive sectors.
- The Motability scheme, as the UK car industry invests more in electric vehicles (EVs) and clean energy, could offer a significant opportunity for the insurance sector, with around 1 in 5 new cars now distributed via the Motability benefits scheme.
- In the insurance sector, advancements in technology like telematics, which can track and assess an individual's driving behavior, could help address the unclear risk management for EV drivers with alcohol or drug convictions.
- As the sports and weather events calendar resumes following pandemic disruptions, the Motability scheme, with its comprehensive insurance packages, may provide a viable mobility option for disabled fans attending outdoor events while minimizing financial risks associated with motor insurance.
