EV and hybrid insurance market to grow by 17% in the next four years

Challenges arise from the high cost of repairing or replacing components.

The global hybrid and electric vehicle insurance market is estimated to reach a compound annual growth rate (CAGR) of 16.88% from 2024 to 2030, according to HTF Market Intelligence

The increasing adoption of electric and hybrid vehicles is driving the demand for specialised insurance products designed to address the unique features of these vehicles. 

Growing consumer interest in environmentally friendly transportation is contributing to higher sales of EVs and hybrids, further expanding the need for tailored insurance solutions, the report revealed.

Insurers have opportunities to tap into expanding markets as more countries embrace EVs and hybrids. 

However, challenges arise from the high cost of repairing or replacing components such as batteries and electric drivetrains, which increase claims costs. Additionally, higher initial premiums for EV and hybrid insurance, driven by expensive parts and repairs, may deter some consumers from opting for these specialised policies.