Why does it cost so much to add an electric car to my insurance?
My 2017 Jeep Grand Cherokee SRT is not ideal for short journeys, so I want to buy a battery-powered Fiat 500e for such use. But my insurer wants an additional £953 to add the Fiat to my policy. With a maximum no-claims discount, I paid £948 for comprehensive insurance on the 6.4-litre Jeep. My insurer will only give me the no-claims discount on one car – why? Surely it should apply to both since I can't drive them at the same time. Doesn't this situation make a total nonsense of the Government's push to get us to go electric?
– DG
Dear DG,
This is more to do with the way insurance works in this country than any failings of electric cars themselves. It's been the case since time immemorial that a no-claims discount (NCD) can't be used on more than one car at a time. Which, as you suggest, is bizarre given that you can only drive one car at a time.
The situation is the bane of many a classic car owner – until they've built up a separate NCD on their historic car, insuring it can be relatively pricey (although some specialist insurers will take account of an NCD held on a 'daily driver' car).
That's exactly what's happening here. You're being quoted on the Fiat on the basis that you don't have an NCD to apply to it – as a result, the quote is comparatively high.
There are a couple of ways around this. Firstly, try another insurer. Your instinct will probably be to use the same company but you will probably find more competitive prices if you take out a new policy; insurers aren't really supposed to do this any more, but many still seem to.
The other option might be to apply the NCD you've accrued to the Fiat instead of the Jeep. That might sound counter-intuitive, but since it's a performance model the Jeep might qualify for a policy with an insurer specialising in such vehicles, or even American models (try Hagerty, Adrian Flux, Performance Direct, Carole Nash, Lancaster and Graham Sykes).
You may be able to arrange a limited-mileage policy which will keep the cost down, while they may even offer an allowance for an NCD held on your 'daily driver' that I mentioned above.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
an hour ago
- Leader Live
Spending review is ‘settled', says Downing Street
Chancellor Rachel Reeves is expected to announce funding increases for the NHS, schools and defence along with a number of infrastructure projects on Wednesday, as she shares out some £113 billion freed up by looser borrowing rules. But other areas could face cuts as she seeks to balance manifesto commitments with more recent pledges, such as a hike in defence spending, while meeting her fiscal rules that promise to match day-to-day spending with revenues. On Monday morning, Home Secretary Yvette Cooper was the last minister still to reach a deal with the Treasury, with reports suggesting greater police spending would mean a squeeze on other areas of her department's budget. Speaking to reporters on Monday afternoon, the Prime Minister's official spokesman said: 'The spending review is settled, we will be focused on investing in Britain's renewal so that all working people are better off. 'The first job of the Government was to stabilise the British economy and the public finances, and now we move into a new chapter to deliver the promise and change.' The Government has committed to spend 2.5% of gross domestic product on defence from April 2027, with a goal of increasing that to 3% over the next parliament – a timetable which could stretch to 2034. Ms Reeves' plans will also include an £86 billion package for science and technology research and development. Last week the Chancellor admitted that she had been forced to turn down requests for funding for projects she would have wanted to back, amid the Whitehall spending wrangling. Mayor of London Sir Sadiq Khan's office is concerned that Wednesday's announcement will include no new funding or projects for London. The mayor had been looking to secure extensions to the Docklands Light Railway and Bakerloo line on the Underground, along with the power to introduce a tourist levy and a substantial increase in funding for the Metropolitan Police. A source close to the mayor said on Monday that ministers 'must not return to the damaging, anti-London approach of the last government', adding this would harm both London's public services and 'jobs and growth across the country'. They said: 'Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn't get the funding it needs. 'We need backing for London as a global city that's pro-business, safe and well-connected.'
Edinburgh Reporter
an hour ago
- Edinburgh Reporter
Winter fuel payment announced in England and Wales means uplift for Scotland
In England and Wales, people who are old enough to receive the State Pension and who have income of less than £35,000 will receive a Winter Fuel Payment this winter. This adds up to 9 million pensioners south of the border – which the UK Government says is around three quarters of all pensioners living there. Winter Fuel payments are no longer paid to Scottish pensioners. In winter 2024/25 pensioners were paid Pension Age Winter Heating Payment through the DWP, but in 2025 The Scottish Government announced that the Pension Age Winter Heating Payment will be paid by Social Security Scotland to all qualifying pensioners. The payment will be either £200 or £300 and £100 to other pensioners. Payment will be made to everyone born before 23 September 1958, who lives in Scotland – and who is in receipt of certain other benefits. The UK Government also confirmed that the change – which is a u-turn on Keir Starmer's previous announcement – will cost around £1.25 billion in England and Wales. It is believed that means-testing of the Winter Fuel Payment will save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of Winter Fuel Payments for everyone regardless of income. In Scotland this payment is devolved and the UK Government said the government will receive a 'mechanical uplift' in their funding as a result of the change in England and Wales. It is thought that might be around £100 million. Social Justice Secretary, Shirley Anne Somerville, said: 'The UK Government's decision to cut the winter fuel payment was a betrayal of millions of pensioners and that is why the Scottish Government took action to introduce a winter heating payment for all pensioners in Scotland. 'I welcome any extension of eligibility by the UK Government, but this is a U-turn the Chancellor should have made a long time ago. But there is still no detail about how the Chancellor intends to go about that. Unfortunately, it still sounds as if many pensioners will miss out. 'We have once again not been consulted on the policy and its implications in Scotland and will scrutinise the proposals carefully when then are announced. I would therefore urge the UK Government to ensure the Scottish Government is fully appraised of the proposed changes as soon as possible. 'The Cabinet Secretary for Finance and Local Government wrote to the Chief Secretary to the Treasury last week to urge the UK Government to share its plans with us as quickly as possible, so that we can understand any implications for our own programmes and, crucially, our budget.' Previously the UK Government announced that Winter Fuel Payments would be restricted to pensioners in receipt of Pension Credit. When First Minister, John Swinney, attended the round table meeting in London at the end of May he asked the prime minister to restore winter fuel payments to all pensioners regardless of means. The costs will be accounted for at the Budget and incorporated into the next OBR forecast. The Chancellor said she will take decisions on funding in the round at that forecast to 'ensure the government's non-negotiable fiscal rules are met', and confirmed that this will not lead to permanent additional borrowing. Chancellor of the Exchequer, Rachel Reeves, said: 'Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest. 'But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.' HMRC will reclaim the payment from anyone earning more than £35,000 and no-one is required to take any action or register for the payment. Winter Fuel Payments are worth £200 per household, or £300 per household where there is someone over 80. Shared payments are made to pensioners not on an income-related benefit. Scottish Labour Scottish Labour Social Security spokesperson, Paul O'Kane, said: 'This is welcome news that will bring even more money to Scotland – on top of the record funding settlement Labour delivered in the budget. 'The last Tory government left our public finances in chaos but Labour has made good progress cleaning up the mess it inherited. 'The Winer Fuel Payment is a devolved payment in Scotland and Scottish Labour has long been clear that we want to see it reinstated for the majority of pensioners up here – but despite their loud spin, the SNP voted against our attempts to do so. 'The SNP must not go ahead with plans that would rob poorer pensioners in order to fund payments for millionaires. 'The SNP must re-examine their own proposals in light of this game-changing announcement, ensure payments reach those most in need, and give a cast-iron guarantee that no struggling Scottish pensioners will be left out of pocket under their plans.' Scottish Greens Scottish Greens Social Security spokesperson Maggie Chapman MSP said: 'Cutting the Winter Fuel Payment was one of the first acts of this Labour government. Elected on a promise of 'change' they brought in sweeping austerity that harmed older people across the UK at a time when the cost of living remains sky high. 'There is no doubt that the damage has already been done, families will have lost loved ones, and illnesses will have been caused over the winter months because of the brutal decision by Rachel Reeves and the Labour Government. 'Labour's cutting of the Winter Fuel Payment, refusal to end the two-child benefit cap and regressive austerity measures are forcing people into poverty in Scotland and across the UK 'The reinstatement of the Winter Fuel Payment for some is a welcome move, but we must go further, the Labour government must end the two-child benefit cap which hits working class families the hardest, and they must reverse their cruel austerity policies. 'Poverty isn't inevitable. It's a political policy, a policy which Rachel Reeves has forced upon hundreds of thousands of people across the UK. If Keir Starmer has any shame, he would finally call an end to her disastrous time as Chancellor.' Independent Age Chief Executive Joanna Elson, CBE, said:'We are pleased that the UK Government has listened to the voices of older people on a low income and reconsidered what was an incredibly damaging change to the Winter Fuel Payment. By widening the eligibility criteria, more older people in financial hardship will now receive this vital lifeline in time for winter. 'Our helpline receives thousands of calls from older people making drastic cutbacks just to get by and the changes to the Winter Fuel Payment made this worse. For millions living on low incomes, the entitlement supports them to turn their heating on and stock up on food during the colder months. 'While the changes to the Winter Fuel Payment are positive, they are not a silver bullet that will end pensioner poverty. Around 2 million older people still live in poverty, and measures must be taken to ensure the long-term financial security of all people in later life. There needs to be a cross-party consensus on the adequate income needed in later life to avoid financial hardship. Once this is established, every older person should be supported to receive this amount. Nobody should have to live in poverty as they age.' Unite general secretary Sharon Graham said: 'Commonsense has finally prevailed as the winter fuel cut is reversed for most pensioners. Whilst this is an important step forward, questions will be asked about how this disastrous decision was made in the first place, the damage may not easily be reversed. 'Leadership is about choices and the choice to pit workers against pensioners was simply wrong. 'Instead of what seems to be a never-ending cycle of cuts, Labour needs to revisit the fiscal rules and bite the bullet on a wealth tax. Britain is the sixth richest economy in the world, the idea that we would be picking the pockets of our pensioners was unnecessary and unforgivable.' When the government announced it was cutting the winter fuel payment, Unite mounted a campaign to get the decision overturned. This included organising a vote at Labour conference opposing the cut in winter fuel payments, and grassroots campaigning which got the cut partially reversed in Scotland and Northern Ireland. Westminster Like this: Like Related
Reuters
an hour ago
- Reuters
Trump said he would not drop Elon Musk's Starlink service
WASHINGTON, June 9 (Reuters) - U.S. President Donald Trump said on Monday that he would not drop the Starlink service made by Elon Musk's SpaceX company, calling it a good service. He told reporters he wishes Musk well.
