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The United Kingdom has set ambitious targets for electric vehicle use. The UK government has mandated that 80% of new cars and 70% of all new vans on UK roads be zero-emission by 2030. And by 2035, all new vehicles sold in the UK are set to be zero-emission.

There is a long way to go to reach those targets. Zero-emission vehicles accounted for just 2.8% of all road-using vehicles in the country at the end of June 2024, according to the UK Government's Department for Transport. Yet fleet vehicle drivers have been keen adopters of electric vehicles, thanks in part to tax incentives for employers and drivers.

An estimated 71% of salary sacrifice vehicles in 2023 - those leased through a third-party supplier in partnership with an employer - were fully electric cars, according to the British Vehicle Rental & Leasing Association (BVRLA). More than a quarter, 28%, of company cars were fully electric in 2023, the BVRLA said, while 14% of car club vehicles on UK roads also were electric vehicles. While the proportion of fully electric vans lags other types of fleet vehicles to date, penetration is increasing according to BVRLA statistics with 2.0% of light commercial vehicles being electric in 2023, up from 1.8% the previous year.

But while there are clear opportunities for fleet operators in driving the shift towards zero-emission vehicles use, there are various risk-related questions that they should consider.

Vehicle use and infrastructure

Many employees are keen to go some way to meeting personal sustainability goals by choosing a zero-emission vehicle. When fleet managers are making decisions about what types of vehicles to lease, however, there are several considerations to take into account to avoid costs down the line - and minimise potentially difficult insurance claims.

The first thing we urge our clients to consider - and talk to us about - is what will the vehicles in the fleet be used for. Will most trips be short journeys in urban areas involving multiple stops, for example? Will the majority of drivers be making longer journeys in more rural areas that are less likely to have easy access to electric vehicle charging points?

It's important to look both at the types of use for the vehicles in the fleet and the infrastructure currently in place around the UK to support electric vehicles. Concerns about the range that electric vehicles can cover before they need to be recharged, the time it takes to charge them, and where this can take place are important elements to factor in when selecting the types of vehicles to offer on lease.

Driver training

A second important risk factor to consider when offering electric vehicles as part of fleets is driver competency. Some electric vehicles can go from 0-to-60 mph in under 4.5 seconds - faster than the average van.

From a risk, and health and safety standpoint, therefore, it is key to ensure that drivers are competent to drive electric vehicles. They may need additional training or support, for example, to help them make the transition to a different type of vehicle.

Duty of care

Many drivers in a fleet may need or wish to charge their electric vehicles at their home. It is vital that this is done in an appropriate and safe way. The Electric Vehicles (Smart Charge Points) Regulations came into force in 2022 and require charge points sold and for use at domestic premises to have smart functionality and meet certain levels of access and security, amongst other things.

Employers and fleet operators have a duty of care to ask questions that go beyond a mere tick-box exercise. They must establish whether drivers have off-road parking, for example, and ask who will fit the charging point - and ensure that it is correctly and safely fitted.

It's important to understand factors like the electric current that will be supplied to the charging point and where at the driver's home the charging point might be fitted. With off-road parking such as a garage or a driveway, it's best practice for drivers to use a 7kW wall charging unit as opposed to a regular three-pin plug. The UK Department for Transport provides guidance on .

Reducing costs and claims

As with combustion engine vehicles, fleets tend to lease electric vehicles and then sell them on after two or three years of use.

Electric vehicles tend to depreciate in value to a much greater extent than their combustion engine equivalents because of the cost of maintenance, and concerns about the supply of parts and range and longevity, amongst other factors.

Seemingly small repair work such as replacing a broken wing mirror, can take longer for an electric vehicle because the parts are more difficult to source and might take longer to arrive, or because a specialist mechanic may be needed, for example.

This can often mean that an electric vehicle is off the road for a prolonged period. And sometimes it may result in vehicles being written off completely because the timescales and costs involved in repair are too onerous.

Not only does this mean there is an expense for the fleet, and an insurance claim, it also often can raise questions about how to dispose of a vehicle that a traditional scrapyard might not be keen to take, or how to recycle the car's battery, for instance.

Smart decision-making

Fleet managers have a clear desire and requirement to meet their own and their drivers' ESG goals. And while there are environmental benefits to switching to an electric vehicle, it's vital that risk considerations are taken into account at the outset.

By talking to our clients about the nature of their fleets and the challenges and opportunities they are experiencing in moving to electric vehicles, we can help them to ensure they are asking the right questions of themselves, their suppliers and their drivers.

If risk - and opportunity - is better understood, then fleet managers can make informed decisions about which vehicles to lease, to whom and where, to reduce costs and claims and enable drivers to choose electric vehicles that suit their needs.