One of the biggest benefits of EV Salary Sacrifice is the fact that all the costs of your vehicle are rolled into one simple, monthly payment. Insurance, tyres, glass, breakdown cover, you name it!
Naturally, we get a lot of questions about how the insurance element works. It can vary depending on your circumstances and does affect your overall monthly cost.
To make things clearer, I’ve pulled together the most common insurance-related questions we’ve received over the past few months, and answered them all in one place.
Is insurance included with all EV Salary Sacrifice vehicles?
Yes. Every vehicle will be covered by comprehensive business insurance. The cost of this is simply factored in your monthly sacrifice amount. This contract will sit with your employer, not you as the individual.
What is the difference between business insurance and personal insurance?
The personal car insurance you’re probably used to covers social, domestic, and commuting use, while business car insurance extends to work-related driving, including travel between different work locations or client visits. Business car insurance is necessary when driving for work purposes, such as traveling for business, beyond the daily commute.
Do I have European cover?
Yes. All of our EV Salary Sacrifice vehicles are covered to drive in Europe.
What is not covered by my policy?
A few examples of things not covered in your policy include:
- For hire or reward
- For delivery
- In competition
- Whilst drawing a greater number of trailers than is permitted by law
Who are the insurance providers?
Our main providers are currently Aviva and Arval Total Care.
Will the price of my insurance change every year?
No, your insurance cost is frozen for the duration of your lease (typically 3 years). It’s one of the key advantages of having it included in your scheme, rather than arranging it separately.
Are there any age restrictions?
Typically, drivers need to be 25 or over. Some insurers allow cover from 21 and over, but this is subject to the condition that the car isn’t on the insurer’s “high value EV” list (which includes models like the BMW i4 or Tesla Model Y). We can share the full list when it’s time to arrange the insurance.
Can I add additional drivers to my policy?
You are free to add additional driver(s) in line with the terms of your chosen insurance policy. Please let us know if you intend to add additional drivers before we order your vehicle, as this can’t be done retroactively.
Can I add young drivers to my policy?
Typically, yes, but restrictions do apply. If the additional driver is under 25, you’ll need to check whether your business has access to the appropriate insurer. Similar to the above, please let us know if you intend to add young drivers before we confirm your order.
What is the excess?
The standard insurance excess is typically £500 with Aviva and £250 with Arval.
How is the cost of my insurance calculated?
After your qualification call, we take your salary and driving details, and use this to generate a personalised quote for your insurance. Your total monthly payment reflects both, often broken down so you can see what portion is for insurance.
Can my no-claims bonus be carried over?
Unfortunately not. No claims discounts can’t be applied or built up, although you will be issued a claims history letter at the end of the contract if you decide to take another lease in the future.
What happens if I get in an accident?
If you’re insured through the Scheme, accident and claims management is included.
Here’s what to do:
- Report the accident within 24 hours (for Arval clients, contact their accident management partner directly)
- Your insurer handles the claim, including vehicle recovery and repairs
- Any excess costs are deducted from your net salary
If you’re unsure who your insurer is or what number to call, check your welcome pack or speak to your Relationship Manager.
What happens to my insurance if my lease is terminated early?
If your lease is terminated early, the insurance element will be handled as part of your scheme’s Early Termination Cover (ETC). The specifics depend on your employer’s agreement; some schemes begin cover from day one, while others kick in after 3 or 6 months. If you’re within the protected period, both the lease and insurance costs will be absorbed under the early termination terms, meaning you won’t be left with a surprise bill. If you’re unsure when your cover begins, your Relationship Manager can confirm the details for your scheme.
