Octopus Electric Vehicles has announced a new car insurance scheme which could see thousands of drivers save on their motoring bills.
In a new partnership with Admiral Pioneer, Octopus Electric Vehicles will begin rolling out fairer car insurance costs for drivers investing in EVs through a salary sacrifice scheme.
The new insurance policy will overhaul standard practices to remove a barrier to entry to electric vehicles.
It will charge motorists based on their individual risk, rather than traditional fleet-rated pricing, where everyone involved in the salary sacrifice scheme pays an average.
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Estimates from Octopus EV suggest that the insurance change will help more than three-quarters of new salary sacrifice drivers save on their insurance costs.
The new policy offering, which will launch in the spring, could help the average driver save around £550.
Motor insurance will remain integrated into Octopus EV's salary sacrifice scheme, allowing drivers to avoid extra administrative effort.
READ MORE: Octopus vows to 'fully protect' thousands of UK drivers from new pay-per-mile car tax changes
Octopus Electric Vehicles will be launching a new car insurance scheme for its salary sacrifice customers
|PA
Gurjeet Grewal, CEO of Octopus Electric Vehicles, said the new partnership with Admiral Pioneer would change the established insurance model for thousands of drivers.
He added: "Salary sacrifice has become one of the most powerful ways to help drivers switch to electric - but the insurance experience hasn’t always kept pace.
"By pricing insurance around the individual, not the average, we're making EVs even better value and keeping the experience simple from day one."
Mr Grewal said the change was another step from Octopus EV to make electric cars the "obvious choice" for motorists looking to ditch their petrol and diesel vehicles.
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More than 6,500 employers are signed up to an Octopus Electric Vehicle salary sacrifice scheme
| OCTOPUS ENERGYDrivers will also be able to carry over their existing no claims bonus from previous policies, allowing for further savings.
Octopus EV said this would be a "rare and welcome win" for drivers who are opting for a new salary sacrifice scheme.
Car insurance has long been a problem for fleets, with drivers paying huge costs, even if they have gone years without claiming.
Emma Huntington, CEO of Admiral Pioneer, which is part of the Admiral Group, emphasised that the new insurance move was possible thanks to two "forward-thinking brands".
"We're partnering with Octopus to bring real innovation to EV salary sacrifice, moving beyond traditional fleet pricing to offer insurance based on individual risk," she said.
She explained that the digital-first approach of Octopus EV would pair well with Admiral's insurance expertise to deliver "smarter, fairer, and more personalised insurance for electric drivers".
More than 6,500 companies and businesses already use Octopus EV's salary sacrifice scheme, with employees being able to save up to 40 per cent off an electric vehicle.
Several major employers are already making use of the Octopus EV salary sacrifice scheme, including Dyson, Greene King, Huel and Purple Bricks.