Is Electric Vehicle Insurance More Expensive?

Is Electric Vehicle Insurance More Expensive?

More drivers than ever are considering switching to zero-emission motoring.

However, one question that frequently arises when weighing up the benefits of going electric is whether EV insurance costs more than traditional petrol or diesel car cover.

The short answer? Yes, electric vehicle insurance is typically more expensive – but there’s more to it than you might expect.

The Current State of Electric Vehicle Insurance Costs

The average cost of EV car insurance is around £654 for the most popular electric car models in the UK, according to recent analysis by NimbleFins. However, premiums are highly variable from one car to the next, with quotes ranging from around £400 to over £1,000 per year for our test driver.

Different comparison sites report varying figures, highlighting how much insurance costs can differ depending on your circumstances. 

But here’s the key point: These costs only matter if you’re buying insurance separately.

Skip the Insurance Hassle Entirely with EZOO

Why worry about electric vehicle insurance costs when you don’t have to deal with them at all?

At EZOO, we’ve eliminated the insurance headache completely. When you choose one of our EV lease deals or salary sacrifice schemes, comprehensive insurance is included as standard – meaning you’ll never need to shop around, compare quotes, or worry about annual renewals and price increases.

The EZOO Advantage

  • No Insurance Shopping Required: Forget spending hours on comparison websites or dealing with insurance brokers. Your cover is sorted from day one.
  • Fixed Monthly Costs: Instead of facing unpredictable insurance renewals that can increase by hundreds of pounds, your insurance cost is built into your predictable monthly lease payment.
  • Comprehensive EV Coverage: Our insurance packages include all the specialist electric vehicle features you need – charging cable cover, battery protection, and breakdown recovery to charging points.
  • Tax-Efficient Payments: Through salary sacrifice, your lease payments (including insurance) come from your gross salary, potentially saving you thousands in tax and National Insurance.
  • Zero Upfront Costs: No need to find a lump sum for annual insurance premiums – everything is spread across affordable monthly payments.
  • Professional Claims Handling: Benefit from fleet-grade insurance with dedicated support, rather than dealing with consumer insurance call centres.

With EZOO’s inclusive approach, the question isn’t “how much more will EV insurance cost me?” but rather “how much will I save by not having to deal with insurance at all?”.

Why Electric Vehicle Insurance Costs More

Higher Purchase Values and Replacement Costs

Electric cars typically have a higher initial purchase price than equivalent petrol models, which often translates to higher insurance premiums. When an insurer calculates your premium, the value of your vehicle is a key factor – quite simply, a more expensive car costs more to replace if it’s written off or stolen.

Battery Technology and Replacement Costs

One of the most significant factors affecting EV insurance costs is the battery pack. The lithium-ion battery pack in an electric car can account for up to two-thirds of the vehicle’s value. If the battery is damaged beyond repair, replacement costs can be substantial, often running into tens of thousands of pounds.

Specialised Repair Requirements

Not every mechanic can work on EVs; a specific qualification is needed. This may incur a higher repair cost. The limited number of qualified technicians means repair times can be longer, and labour costs higher.

However, it’s worth noting that EVs generally have fewer moving parts than traditional vehicles and tend to require less frequent maintenance overall, with electric motors proving more reliable than conventional combustion engines.

Parts Availability and Cost

Electric vehicles use specialised components that can be more expensive and harder to source than conventional car parts. Since EVs are newer, they are more expensive to repair, and the parts harder to get hold of. Software is also more technical to repair.

Limited Historical Data

Insurance premiums are typically based on historical claims data, but electric vehicles haven’t been on UK roads long enough to build comprehensive databases. This uncertainty often leads insurers to price policies more conservatively, resulting in higher premiums.

Special Insurance Features for Electric Vehicles

Many insurers now offer EV-specific policies with additional features that traditional car insurance doesn’t include:

  • Charging Equipment Cover: Protection for charging cables, wallbox home chargers, and adaptors against theft, damage, or fire.
  • Battery Cover: Comprehensive protection for the vehicle’s battery pack, even if it’s leased separately from the car.
  • Breakdown Recovery: Specialist recovery services if your EV runs out of charge, including transport to the nearest charging point.
  • Over-the-Air Updates: Coverage for software updates that are delivered remotely to your vehicle.

Factors That Affect Your Electric Vehicle Insurance Premium

Like any car insurance, EV premiums are influenced by numerous personal and vehicle-related factors:

  • Your Age and Experience: Young and inexperienced drivers typically pay more, regardless of whether they drive electric or petrol vehicles.
  • Driving History: A clean driving record with no claims or convictions will help keep costs down.
  • Annual Mileage: Higher mileage typically means higher premiums as insurers perceive greater accident risk.
  • Location: Urban areas with higher traffic density and crime rates generally result in higher premiums.
  • Security Measures: Having a garage or secure parking can reduce costs, as can additional security features like alarms or immobilisers.
  • Occupation: Certain professions are considered higher risk by insurers.

Ways to Reduce Your Electric Vehicle Insurance Costs

Despite higher baseline costs, there are several strategies you can employ to keep your EV insurance affordable:

  • Shop Around: Different insurers price electric vehicle risk differently, so comparison shopping is essential.
  • Consider Higher Excesses: Agreeing to pay a higher excess can significantly reduce your premium.
  • Improve Security: Parking in a garage or on a private driveway can lower costs.
  • Bundle Policies: Some insurers offer discounts if you have multiple policies with them.
  • Build No-Claims Bonus: Maintaining a clean claims record will help reduce future premiums.
  • Choose Your Vehicle Wisely: Some electric vehicles are much cheaper to insure than others.

Making the Switch: Is It Worth It?

The slightly higher insurance costs shouldn’t deter you from considering an electric vehicle. As the technology matures and becomes more mainstream, insurance costs are expected to continue falling.

The environmental benefits, lower running costs, and increasingly impressive range and performance of modern electric vehicles make them an attractive proposition for many drivers.

Does Salary Sacrifice Affect Pensions?

Does Salary Sacrifice Affect Pensions?

Salary sacrifice schemes are growing in popularity – particularly those that let employees drive brand-new electric cars for less.

While tax savings and zero-emission perks are often front and centre, many employees (and employers) have a more practical question: Does salary sacrifice affect pensions?

The short answer? Yes, it can – but not always in a negative way. The longer answer depends on how your pension is structured, how your employer manages contributions, and what kind of scheme you’re in.

What Is Salary Sacrifice? (Quick Refresher)

Salary sacrifice is a government-approved arrangement where an employee gives up part of their gross salary in exchange for a non-cash benefit. That might be additional pension contributions, a cycle-to-work scheme, or – as is increasingly common – a fully electric car.

Because the deduction comes from gross salary, before tax and National Insurance are applied, employees pay less tax and less National Insurance.

When it comes to electric car salary sacrifice, the result is that employees can drive a brand-new EV for significantly less than they’d pay via a personal lease – often saving 30–60% overall.

How Salary Sacrifice Affects Pensions

This is where it gets slightly more complex. By reducing your gross salary, salary sacrifice can, in some cases, also reduce:

  • The amount of money you contribute to your pension
  • The amount your employer contributes, depending on the scheme rules

That said, most responsible employers put safeguards in place to make sure your pension contributions are protected.

Types of Pension Contributions

There are two main types of pension contributions to be aware of:

1. Percentage-Based Contributions

Most workplace pensions calculate contributions as a percentage of your gross salary. For example:

  • You contribute 5% of salary
  • Your employer contributes 3%

If your gross salary drops because of salary sacrifice, and the contributions are tied to that reduced salary, your pension contributions could be slightly lower.

2. Reference or Notional Salary Contributions

Many employers now calculate pension contributions based on your pre-sacrifice salary (also known as “reference salary” or “notional salary”). This ensures your pension contributions remain the same, even if you opt into a salary sacrifice scheme.

This is often referred to as “salary sacrifice with pension protection” and is considered best practice, especially for large employers.

Do All Employers Protect Pension Contributions?

Not automatically. While many employers do protect pensions within salary sacrifice arrangements, it’s not a legal requirement unless specified in the contract or policy.

Employees should:

  • Check their employment contract or HR policies
  • Ask HR or payroll whether pensions are based on actual or notional salary
  • Get written confirmation before signing up to a scheme

At EZOO, we recommend that businesses offering salary sacrifice schemes work with providers (like us) who understand these nuances and can help employers build a fully compliant and employee-friendly policy.

Other Benefits That May Be Affected

Because salary sacrifice reduces your official gross salary, it can also influence:

  • Death in service benefits
  • Redundancy calculations
  • Mortgage or loan applications
  • State benefits eligibility

However, again, many employers use reference salary to assess other benefits, mitigating any impact.

The best practice? Treat salary sacrifice as a total rewards strategy, not just a one-off benefit. Consider how it aligns with your broader employee benefits package, including pension, insurance, bonus schemes, and more.

Why Salary Sacrifice Is Still a No-Brainer for EVs

Even with a potential reduction in pension contributions (which can be avoided with good scheme design), salary sacrifice remains one of the most tax-efficient ways to drive. Why?

  • You save on income tax and National Insurance
  • Your employer often shares their NI savings with you
  • You avoid big upfront costs associated with leasing or buying
  • You pay low benefit-in-kind tax (just 3% in 2025/26 for BEVs)
  • You drive a brand-new EV without the hassle of insurance, servicing, or depreciation worries

With the cost-of-living still high and more people thinking long-term about both money and the planet, EV salary sacrifice is a smart way to do both.

Tips for Employers Offering Salary Sacrifice Schemes

  • Communicate clearly with staff about how pensions and benefits are affected
  • Use notional salary as the basis for pension and death-in-service benefits where possible
  • Offer guidance or bring in a benefits provider who can explain the full package
  • Partner with providers who offer flexible, compliant solutions with minimal admin

Salary sacrifice should never leave employees worse off in the long run – when managed well, it becomes a powerful, future-forward part of your employee value proposition.

Keep Your Pension On Track

So, does salary sacrifice affect pensions? Technically, yes – it can reduce pension contributions if based on the post-sacrifice salary. But in reality, most employers either protect pensions using notional salary or can easily set up schemes that do.

The key takeaway? Salary sacrifice doesn’t have to come at the cost of your retirement savings. With the right setup, you can drive a new electric car, cut your tax bill, and keep your pension on track – all at the same time.

Frequently Asked Questions

Will salary sacrifice reduce my pension contributions?

It depends on how your scheme is structured. If your employer uses your reduced salary to calculate pension contributions, they may be lower. If they use your pre-sacrifice salary (notional salary), they will stay the same.

Does salary sacrifice affect employer pension contributions?

Yes, if the employer calculates contributions based on your reduced salary. However, many employers protect contributions using the notional salary, so there’s no negative impact.

How can I check if my pension is protected in a salary sacrifice scheme?

Ask HR or payroll for details. Look for terms like “reference salary” or “notional salary” in your contract or benefits policy.

Does salary sacrifice affect other benefits like death in service or redundancy pay?

Potentially, yes – if those are calculated from your reduced salary. Again, many employers use the reference salary to protect these benefits, so it’s best to confirm.

Is EV salary sacrifice still worth it if it slightly reduces my pension?

For most people, yes. The tax savings from salary sacrifice typically outweigh the small pension difference – especially if you top up your pension separately or the impact is marginal.

How Does Business Car Leasing Work?

How Does Business Car Leasing Work?

For businesses of all shapes and sizes, access to vehicles is often essential – but owning a company fleet outright can be expensive, time-consuming, and inefficient. That’s where business vehicle leasing comes in.

Whether you’re a growing start-up or a nationwide enterprise, leasing gives your business access to the latest cars – including fully electric vehicles – without the large upfront costs or long-term depreciation risks.

What Is Business Car Leasing?

Business car leasing is a way for companies to access vehicles without owning them outright. Instead of purchasing a car (and tying up capital), you rent it over a fixed term – usually 2 to 4 years – paying a monthly fee. At the end of the contract, the vehicle is returned, and you can start a new lease if needed.

It’s essentially long-term vehicle hire, designed to reduce financial risk and provide flexibility.

How Does It Work in Practice?

Here’s a step-by-step look at a typical business leasing process:

1. Choose a Vehicle

With EZOO, you’ll have access to a wide range of EVs to suit different business needs. When supplying from our own fleet, we can often get vehicles out to businesses in as little as 7 days.

2. Sign a Business Lease Agreement

You enter into a lease contract – often referred to as Business Contract Hire (BCH). This outlines the vehicle, term, mileage allowance, and monthly cost.

With EZOO, lease terms are flexible – starting from just 3 months (the shortest in the UK), making it ideal if you’re trialling EVs for your team or simply waiting for a new car to be delivered.

3. Make Monthly Payments

Your company pays a fixed monthly fee for the use of the vehicle. With EZOO, road tax (VED) and maintenance are included in this fee.

4. Return the Vehicle at the End of the Lease

Once the term ends, you return the car (provided it’s in fair condition and within the mileage limit). You can then lease a new vehicle, extend the lease, or walk away.

5. No Worries About Depreciation or Selling

Since you don’t own the car, you don’t need to worry about its resale value – making cash flow and planning much easier.

Types of Business Leasing

There are a few variations of business leasing in the UK:

  • Business Contract Hire (BCH): The most common option. You lease the vehicle for a fixed term with fixed monthly payments. Great for VAT-registered businesses and low-risk budgeting.
  • Finance Lease: You pay a monthly cost and a balloon payment at the end, and the vehicle is sold to a third party. More suitable for businesses that want some control over resale.
  • Business Car Subscription: A more flexible, all-inclusive option. Pay monthly with no long-term tie-in – includes maintenance, insurance, and more.
  • Electric Car Salary Sacrifice: Technically not a business lease, but worth including. Employers lease the car and employees drive it through a tax-efficient salary deduction.

Why Lease Instead of Buy?

Leasing offers several business advantages over purchasing:

  • Preserve Cash Flow: No large upfront payments – capital can be used elsewhere in the business.
  • Predictable Costs: Fixed monthly fees simplify budgeting.
  • Tax Efficiency: Lease payments can often be claimed as a business expense.
  • VAT Benefits: If you’re VAT-registered, you can reclaim up to 100% of the VAT on a commercial lease (and 50% on personal use vehicles).
  • No Depreciation Risk: Avoid the hassle of selling a depreciating asset.
  • Access to the Latest EVs: Refresh your fleet every few years, with cutting-edge electric vehicles and safety tech.

Why Are Electric Vehicles So Popular To Lease?

With the shift towards net zero and tighter emissions rules, more businesses are switching to electric vehicle leasing. It’s a smart move – and leasing EVs often makes more sense than owning them outright. Here’s why:

  • Lower Benefit-in-Kind (BiK) tax: Just 3% in 2025/26, compared to 16–37% for petrol/diesel vehicles. Please note that the BiK for EVs will continue to increase annually until at least 2029.
  • Cheaper running costs: Electricity is cheaper than fuel, and EVs have fewer moving parts to maintain.
  • Sustainability credentials: Improve your ESG ratings and reduce your company’s carbon footprint.
  • Flexible EV subscriptions and salary sacrifice options: With EZOO, you can access EVs in ways that suit modern, agile businesses.

Are There Any Risks or Downsides?

Leasing is low-risk, but there are a few things to consider:

  • Mileage limits: Exceeding them can lead to excess mileage charges.
  • Wear and tear: You’ll be expected to return vehicles in fair condition.
  • Early termination fees: If you end a lease early, there may be a penalty.
  • VAT complexity: If vehicles are used for both business and personal travel, VAT recovery rules apply.

Choosing the right partner (like EZOO) can help you manage these issues effectively – with tailored guidance and flexible terms.

How EZOO Does It Differently

EZOO’s approach to business EV leasing is designed for modern businesses:

  • Electric and hybrid vehicles: Focused on the vehicles of the future, not the past
  • Flexible plans: From long-term leasing to short-term 3-month subscriptions (the shortest in the UK!)
  • All-inclusive monthly price: Covering insurance, servicing, 24/7 breakdown cover, road tax, and maintenance.
  • Low admin: We manage the setup, paperwork and onboarding
  • Employee-friendly: Salary sacrifice schemes that save money and attract talent

Whether you’re looking to electrify your fleet or roll out a low-emission perk for your team, EZOO gives you the tools, cars and support to do it seamlessly.

Lease Your Fleet Today

Business car leasing is a smart, cost-effective way to run a company fleet – especially as more organisations go electric. It allows businesses to access the latest vehicles without the capital outlay or risks of ownership, while unlocking tax advantages and predictable costs.

From traditional business leases to all-in EV subscriptions and salary sacrifice schemes, there’s never been a better time to rethink how your business uses vehicles. With the right partner, leasing isn’t just a finance option – it’s a strategy for sustainability, flexibility, and growth.

Frequently Asked Questions

Can any business lease a car?

Yes. Limited companies, sole traders and partnerships can all lease vehicles through business leasing agreements, subject to credit checks.

Is insurance included in business car leasing?

Usually not in traditional leasing – but EZOO’s subscription and salary sacrifice options include insurance as part of the package.

What happens at the end of a lease?

You return the vehicle, and if it’s within the mileage and in fair condition, there are no extra costs. You can then start a new lease or walk away.

Can I lease an EV through my business?

Absolutely. Leasing electric vehicles through your business is cost-efficient, tax-friendly, and helps with sustainability goals.

What’s the difference between leasing and salary sacrifice?

With leasing, the business provides the car. With salary sacrifice, the car is leased by the employer, but paid for through the employee’s gross salary – offering tax and NI savings.

Introducing the EV Salary Sacrifice Customer Portal

Introducing the EV Salary Sacrifice Customer Portal

At EZOO, our mission has always been to make driving an electric car as easy and affordable as possible. Now, we’ve taken that one step further with the launch of our brand-new EV salary sacrifice portal – our digital hub designed to put you in control of your electric car journey.

The portal makes finding, customising, and leasing the EV that suits your lifestyle and budget smoother than ever. With the widest range of new and used EVs in the UK, there’s something for every driver and every budget.

What is the EZOO Salary Sacrifice Portal?

The EZOO portal is a personalised online platform for employees whose company is signed up to EZOO’s salary sacrifice scheme. Once logged in, drivers can:

  • Browse the widest range of EVs in the UK – all the way from budget-friendly city cars to top-spec premium models.

  • See tailored monthly prices – personalised to your salary and employer agreement.

  • Customise your car – choose trim, mileage, contract length, start date and more.

  • Get instant, accurate quotes – underwritten by approved leasing providers, so no guesswork.

  • Compare and filter options easily – by brand, range, performance, or budget.

And of course, every EZOO quote includes everything you need in one fixed monthly cost- insurance, servicing, 24/7 breakdown cover, road tax, and maintenance.

Why it makes life easier

Choosing an EV through salary sacrifice shouldn’t feel complicated. With our portal, you can:

  • Research at your own pace

  • Explore costs without back-and-forth emails

  • Get clear, transparent prices from the start

  • Make confident decisions about your next car

It’s designed for the modern driver – quick, intuitive, and stress-free.

As EZOO’s co-founder and CEO Lash Saranna puts it:

“Our new customer portal makes choosing your dream salary sacrifice car easier and faster than ever before. Customers can pick exactly the car they want, to their specification and budget, before finalising the agreement with EZOO’s customer service team.”

See the Salary Sacrifice Portal in Action

We know that seeing is believing, that’s why we’ve put together a short video demo to show you exactly how the portal works.

Watch the demo here and discover just how simple it is to find your perfect EV with EZOO.

UK Electric Car Grant 2025 Update – 13 More Models Added

UK Electric Car Grant 2025 Update – 13 More Models Added

Great news for drivers across the UK! From Saturday 9 August 2025, thirteen additional electric models from Nissan, Renault, and Vauxhall qualify for a £1,500 discount under the expanded UK electric car grant scheme – bringing the total to 17 eligible models this week alone.

What’s New in the UK Electric Car Grant?

Newly eligible models for the £1,500 discount include:

  • Renault: Alpine A290, Megane, R4, R5 and Scenic

  • Nissan: Micra, Ariya (from 13 August), plus the new Sunderland-built Leaf

  • Vauxhall: Corsa Electric, Combo Life Electric, Astra Electric, Mokka Electric, Frontera Electric, Grandland Electric

These join the Citroën ë-C3, ë-C4, ë-C5, and ë-Berlingo, announced earlier this week.

The grant is only available on new EVs, as opposed to used.

What Does it Mean?

  • It’s now cheaper than ever to go electric. 

  • Instant savings, applied at the dealership. No paperwork needed.

  • More choice, especially in affordable models under £37,000.

  • Part of a long-term scheme – running until at least 2029 with over £650 million funding.

How EZOO Makes the Grant Go Further

We don’t just tell you about the UK electric car grant – we help you get the most out of it:

  1. Apply it instantly when business leasing or through salary sacrifice – no extra paperwork, we apply it instantly.

  2. Stack your savings: our all-inclusive packages mean your grant stretches even further.

  3. Zero admin. we handle the details; you just drive.

  4. Stay ahead: we’ll alert you as soon as new models become eligible.

Why Act Now

The UK electric car grant is a key driver in making EVs more affordable than ever. Pair that with the UK’s rapidly growing charging network (over 82,000 public charge points) and the upcoming petrol/ diesel regulation changes in 2030 this is the perfect time to switch. 

With the 13 new models added, there’s now an option for almost every lifestyle, from city hatchbacks to family SUVs. The £1,500 saving stacks with EZOO’s salary sacrifice scheme, unlocking up to 60% off your monthly cost. The discount is applied instantly, charging infrastructure is stronger than ever (with 10% off through OVO when you’re an EZOO customer), and funding is secured until at least 2029. Acting now locks in the savings and gets you behind the wheel of a future-ready EV.

Frequently Asked Questions About the UK Electric Car Grant

What is the UK electric car grant?

The UK electric car grant is a government-backed scheme that reduces the cost of eligible new electric cars by up to £1,500, applied instantly at the dealership.

Which electric cars are eligible for the grant in 2025?

As of August 2025, 17 models qualify, including selected Citroën, Renault, Alpine, Nissan, and Vauxhall EVs. The full list is regularly updated by the government.

Who can apply for the UK electric car grant?

Anyone buying or leasing a new eligible electric car under £37,000 can benefit. The discount is applied automatically, so there’s no need to apply yourself.

Can I use the grant with salary sacrifice?

Yes! When you get your EV through EZOO’s salary sacrifice scheme, the UK electric car grant reduces your monthly cost even further – on top of your tax savings.

How long will the UK electric car grant be available?

The scheme is funded until at least the 2028–29 financial year, but the government can make changes at any time. That’s why it’s worth acting now to lock in the savings.

Does the UK electric car grant cover home charging?

No – the grant only applies to the cost of the car itself. But EZOO can help arrange a home charger installation as part of your EV package.

Can I get the full £3,750 grant now?

Currently, most newly eligible models qualify for £1,500. Some may become eligible for the full £3,750 in future, depending on government updates.

Related: Electric Car Grant: Are EVs More Affordable Than Ever?

Does Business Car Leasing Include Insurance?

Does Business Car Leasing Include Insurance?

When it comes to business car leasing, the fine print can make all the difference.

One of the most common (and critical) questions we get is: “Does business car leasing include insurance?” The answer? It depends on the provider and the type of lease.

Some business car leases come as “fully comprehensive,” while others leave insurance entirely in your hands.

What Is Business Car Leasing?

Business car leasing allows a company to access vehicles – often EVs – for a fixed term, usually 2 to 4 years, with predictable monthly payments. There are a few leasing models on the market:

1. Traditional Business Contract Hire (BCH)

  • Long-term lease (usually 2–4 years)
  • Fixed monthly cost
  • Mileage limits
  • Insurance usually not included

2. Business Car Subscription Services

  • Month-to-month or short-term commitment
  • All-in-one packages
  • Includes servicing, maintenance, roadside assistance – and often insurance

3. Electric Car Salary Sacrifice Schemes

  • Employee leases an EV via gross salary deductions
  • Employer contracts with a provider
  • Typically includes insurance, maintenance, breakdown cover, tyres, and more

Traditional Business Car Leasing: Is Insurance Included?

In most Business Contract Hire (BCH) arrangements, the leasing provider supplies the vehicle – but insurance is your business’s responsibility. This means:

  • You must arrange either a fleet insurance policy or name individual drivers on personal policies
  • You’re liable for ensuring all vehicles are road legal
  • You may be restricted in terms of which insurers are acceptable to the lease company
  • You must ensure cover is continuous for the duration of the lease

This setup works for some companies—especially those with existing fleet policies – but it also adds admin, risk, and cost.

EV Subscriptions and Salary Sacrifice: A Different Story

Now let’s talk about more modern, flexible EV leasing options, like those offered here at EZOO.

EV Salary Sacrifice Schemes

These schemes are becoming hugely popular with forward-thinking businesses. They allow employees to drive an electric car in exchange for a portion of their gross salary. And the good news?

  • Fully comprehensive insurance
  • Coverage for the employee and often their partner or named driver
  • No need for the employee to organise or pay for a personal policy
  • Insurance is maintained throughout the lease term

This makes salary sacrifice schemes incredibly appealing for both HR and employees – no surprises, no admin, and peace of mind.

Business EV Subscriptions

Think of these as Netflix for cars. Business EV subscriptions are:

  • Flexible (monthly rolling contracts or short-term options)
  • All-inclusive
  • Tailored for agile businesses and short-term projects

Insurance is usually baked into the monthly fee, along with servicing, tyres, maintenance, and breakdown. Subscriptions are ideal for companies that need vehicles quickly, without long-term commitment or red tape.

What Are The Advantages of Business Car Leasing With Insurance?

Let’s weigh up whether going for an all-in-one package with insurance included is the right choice.

  • Simplicity: One monthly payment, everything covered.
  • No Admin: No policy comparisons, renewals, or insurance paperwork.
  • Predictable Budgeting: Easier to forecast vehicle running costs.
  • Great for Employees: Especially with salary sacrifice, employees don’t need to think about insurance at all.
  • Risk Mitigation: Cover is guaranteed and designed for leased EVs.

Questions To Ask Your Provider About Insurance

Before you commit to a lease or subscription, ask these questions:

  • Is fully comprehensive insurance included?
  • Does the insurance cover multiple drivers or just one?
  • Are there any driver restrictions (e.g. age or licence type)?
  • What’s the excess in the event of a claim?
  • Is breakdown cover and roadside assistance included?
  • Can we opt out of the insurance if we already have a fleet policy?

Clarity up front will save headaches later.

Build Your Fleet With Peace Of Mind

So, does business car leasing include insurance? Sometimes yes, sometimes no—it all depends on the model. Traditional business leases typically exclude it, while modern solutions like EV subscriptions and salary sacrifice schemes usually include comprehensive cover.

If your business values simplicity, compliance, and low admin, choosing a package that includes insurance is a smart move. Especially with electric vehicles, where incentives, cost savings, and ease of use make bundled options a compelling choice.

Frequently Asked Questions

Does business car leasing always include insurance?

No. Traditional business contract hire usually doesn’t include insurance. However, salary sacrifice schemes and EV subscriptions typically do.

What kind of insurance is included with EV salary sacrifice?

Most schemes offer fully comprehensive insurance, often including cover for the employee, their partner, and named drivers. Breakdown and roadside assistance are usually included too.

Can I provide my own insurance for a leased business car?

In traditional leasing models, yes. In subscription and salary sacrifice models, insurance is usually bundled and not optional.

Is business car insurance more expensive?

Not necessarily. Insurers often offer favourable fleet or business rates, but individual driver history, vehicle type, and location still affect premiums.

Electric Car Grant: Are EVs More Affordable Than Ever?

Electric Car Grant: Are EVs More Affordable Than Ever?

The UK government has just launched an exciting new initiative that could revolutionise electric vehicle ownership for thousands of drivers. The Electric Car Grant, backed by a substantial £650 million funding package, represents the government’s strongest commitment yet to accelerating the transition to zero-emission vehicles.

What Is the Electric Car Grant?

The Electric Car Grant is a comprehensive financial incentive scheme designed to make electric vehicles more accessible to everyday drivers.

The grant offers discounts of either £1,500 or £3,750 on new zero-emission cars priced at or under £37,000, instantly making electric driving more affordable for a broader range of consumers.

This isn’t just about upfront savings either. The grant unlocks potential additional savings of up to £1,500 annually in running costs compared to traditional petrol or diesel vehicles, making the total cost of ownership significantly more attractive.

How Does the Grant Work?

The scheme operates on a two-tier system based on environmental sustainability standards:

  • Band One (£3,750 discount): Reserved for the most sustainably produced vehicles that meet the highest environmental criteria.
  • Band Two (£1,500 discount): Available for vehicles that meet basic environmental standards.

How Do Vehicles Qualify?

The key requirement is that manufacturers must hold verified Science-Based Targets for carbon emissions reduction. This ensures that the grant supports not just zero-emission driving, but also sustainable manufacturing practices throughout the vehicle’s lifecycle.

To qualify, vehicles must meet several criteria including:

  • Zero tailpipe emissions
  • Minimum 100-mile WLTP range
  • Battery warranty covering at least 70% usable capacity for eight years or 100,000 miles
  • List price of £37,000 or less

When Is The Grant Available?

The grant became available from July 16, 2025, with funding secured through to the 2028-2029 financial year. Car manufacturers can now apply for vehicle eligibility, and once approved, they’ll automatically apply the discount to qualifying vehicles – meaning no additional paperwork for customers.

Top Electric Vehicle Picks Under £37k

With 50 electric vehicles from 27 brands currently priced under the £37,000 threshold, there’s never been more choice for grant-eligible EVs. Here are some standout options that could become even more compelling with the grant:

Renault 5 – £22,995 (Potentially £19,245 with Band One grant)

The Renault 5 combines retro charm with cutting-edge technology. This stylish five-door hatchback offers up to 250 miles of range in higher specifications, making it perfect for both city driving and longer journeys. Even the base model includes LED lighting, climate control, and cruise control.

Citroen E-C3 – £22,095 (Potentially £18,345 with Band One grant)

This compact crossover delivers exceptional comfort thanks to its Advanced Comfort seats and suspension system. With up to 199 miles of range from its 44kWh battery, it’s ideal for drivers wanting crossover practicality without the premium price tag.

Kia EV3 – £33,005 (Potentially £29,255 with Band One grant)

Kia’s smallest SUV punches well above its weight in terms of space and refinement. The EV3 offers impressive range options, with the larger battery delivering up to 376 miles – perfect for drivers who want to eliminate range anxiety entirely.

Vauxhall Grandland – £36,455 (Potentially £32,705 with Band One grant)

For families needing maximum space, the Grandland offers a proper family-sized SUV experience at a competitive price. With over 300 miles of range and generous interior space, it proves that electric family cars don’t have to break the bank.

Dacia Spring – £14,995 (Potentially £11,245 with Band One grant)

As one of the most affordable electric vehicles on the market, the Spring could become an absolute bargain with the grant applied. It’s perfect for urban driving and represents an incredibly accessible entry point into electric motoring.

Why This Grant Matters for Your EV Journey

The Electric Car Grant addresses one of the biggest barriers to EV adoption: upfront cost. Combined with the inherent savings from reduced fuel and maintenance costs, electric vehicles are becoming increasingly attractive propositions for both personal and business use.

For those considering EV salary sacrifice schemes or leasing subscriptions, the grant makes the financial case even more compelling. Lower purchase prices mean reduced monthly payments, while the long-term savings continue to accumulate through reduced running costs.

The Future Is Electric

This grant represents more than just a financial incentive – it’s a clear signal of the government’s commitment to supporting the electric vehicle transition. With charging infrastructure investment also announced alongside the grant, the foundations are being laid for a comprehensive electric vehicle ecosystem.

The scheme’s focus on sustainability standards also ensures that as more drivers make the switch to electric, they’re choosing vehicles produced with environmental responsibility at their core. This holistic approach to the EV transition benefits not just individual drivers, but the broader goal of reducing transport emissions.

As more manufacturers adjust their pricing and new models enter the market, the range of grant-eligible vehicles is likely to expand further, giving consumers even more choice in their electric vehicle journey.

The Electric Car Grant isn’t just changing the economics of electric vehicle ownership – it’s accelerating the future of sustainable transportation for everyone.

EZOO is Exhibiting at EVEX 2025

EZOO is Exhibiting at EVEX 2025

We’re excited to be exhibiting at EVEX 2025, the Electric Vehicle Experience Day organised by EV Driver and Suffolk County Council, taking place at Trinity Park, Ipswich on Wednesday 9th July 2025.

What’s EVEX 2025 All About?

EVEX is back for its seventh year, bringing together the best in EV technology, infrastructure and innovation across East Anglia.

The Main Event Day (Wednesday 9 July) is aimed at both consumers and businesses, and we’re excited to be part of it alongside fellow EV industry leaders.

Why You Should Visit the EZOO Stand

We’re joining top brands including Believ, Donalds Kia, Lexus, Tesla, MW Motors and more as a confirmed exhibitor for the Main Event Day. Here’s what we’ll be offering:

Don’t Miss Lash’s Talk

On 9th July, our founder Lash Saranna will present at one of the insightful panel sessions. Expect real-world wisdom from an automotive expert – covering the benefits of EV salary sacrifice, how to communicate the value to employees, and ways businesses can elevate their green credentials.

When & Where to Find Us

  • Date: Wednesday 9th July 2025

  • Location: Trinity Park, Ipswich, IP3 8UH 

  • Event hours: Doors open at 09:00, with panel sessions at 11:30–12:30 (business focus) and 13:00–14:00 (consumer focus) – wrap-up around 17:00 

  • Ticket price: Main Event Day tickets are £10, but available now at the early-bird rate of £5

Get your tickets here.

What Else Is Happening at EVEX?

  • Test drives across the venue. Try a wide range of EV models.

  • Infrastructure showcase: Speak to infrastructure experts and explore the latest in charging tech.

  • Special experiences: Try the Spartan EV off-road drive and ride in a self-driving shuttle, courtesy of Ohmio Lift.

Why This Matters for You

You might be an employer looking to offer EVs as a benefit with zero admin fuss or you might be an employee seeking a cost-efficient way to switch to electric. Either way, EZOO makes it effortless. Visit us to see how:

    • We handle insurance, servicing, breakdown cover and taxation.

    • You benefit from a fully inclusive subscription, flexible terms, and an optional home charger.

    • You get 10% off public charging through our OVO partnership.

Get Inspired

Drop in for a chat, test a car, or catch Lash’s talk.

EZOO is all about making EVs personal, simple and stress‑free.

Let’s help your organisation or your employees make the switch and start saving.

See you at EVEX 2025 on 9th July!

 

 

Ready to go?

Book a demo now.

Why EV Salary Sacrifice is an Easy Win for Your Business

Electric cars aren’t just for early adopters or eco-conscious individuals anymore. They’re now a smart, strategic move for businesses looking to save money, boost employee benefits, and hit sustainability goals in one simple step.

Here’s why switching to EVs – especially through an EV salary sacrifice scheme – is an easy win for your business.

1. It's Cost-Neutral (and Even Cost-Saving)

Implementing a salary sacrifice scheme for electric cars doesn’t cost your business a penny. In fact, it can save you money.

Employees sacrifice a portion of their gross salary in exchange for a new or used electric car, reducing your National Insurance contributions in the process. That means you give your team a valuable benefit and cut costs. Win-win.

2. A Powerful Employee Perk

Recruitment and retention are more competitive than ever. Offering an electric car salary sacrifice scheme puts your business ahead. It’s a highly desirable benefit that lets your staff drive an EV to suit their budget, at up to 60% less than they’d pay privately. And with EZOO, everything’s included: insurance, servicing, breakdown cover, and tax – so there’s zero hassle.

3. No Admin Headaches

Worried about complexity? Don’t be. At EZOO, we handle everything from onboarding and contracts to early exits and vehicle swaps. You get a fully managed service with minimal admin, complete compliance, and dedicated support. You can offer EVs to your team without adding to your workload.

4. Boost Your Green Credentials

Sustainability isn’t just a buzzword. It matters to customers, employees, and investors. Switching to EVs is a clear, credible step towards your carbon goals. Whether you’re looking to build a greener brand or report on ESG metrics, salary sacrifice for business EVs is a powerful move.

5. Suits Businesses of All Sizes

You don’t need a big fleet or a huge team to make EV salary sacrifice work. EZOO has no minimum employee requirements. You might be a startup with five people or a growing company with 500 – either way, we’ll make it work.

The Bottom Line?

Switching to EVs through a salary sacrifice scheme is smart, simple, and future-focused. It helps your people, your business, and the planet. And when you do it with EZOO, you get a personal, all-inclusive service that makes it completely hassle-free.

Ready to make the switch?

Get in touch and discover how easy it is to electrify your business with EZOO.

We’re Exhibiting at the EV SUMMIT 2025

We’re Exhibiting at the EV SUMMIT 2025

EZOO will be exhibiting at this year’s EV SUMMIT, taking place in Oxford on 17th – 18th September 2025, and we’d love for you to join us there!

Billed as “the most important EV event in the UK,” the EV SUMMIT brings together the brightest minds and boldest innovators in electric vehicles: fleet managers, manufacturers, policymakers and tech leaders, to name a few. And this year, we’re proud to be part of it.

Why Visit Us at the Summit?

Come and chat with our team to:

✅ Get expert advice on launching an electric car salary sacrifice scheme at your workplace

✅ Explore flexible options for business electric car subscriptions

✅ Discover how we take care of everything, so you don’t have to

✅ Learn how your company can save on National Insurance and hit carbon targets faster

And if you’re not yet signed up for the event – there is still time!

Use code EZOO20 for 20% off your EV SUMMIT tickets.

Get your tickets here.

Let’s Build a Greener Future, Together

We believe the EV transition should be smooth, affordable, and sustainable for everyone. That’s why we’re so excited to be at the heart of the EV conversation at this year’s summit – sharing what we’ve learned, and learning from others too.

See you there!