A new insurance partnership could help salary sacrifice drivers reduce one of the less predictable costs of electric vehicle ownership.
Octopus Electric Vehicles has teamed up with Admiral Pioneer to introduce a new insurance model that prices cover based on individual driver risk rather than traditional fleet averages. The change is designed to reflect real-world driving behaviour more accurately and avoid lower-risk drivers subsidising higher-risk ones.
When the product launches this spring, Octopus EV estimates that more than three-quarters of its salary sacrifice drivers will benefit from lower premiums, with the average saving close to £550. Drivers will also be able to carry over their existing no claims bonus, potentially reducing costs further.
The insurance remains fully integrated into Octopus EV’s salary sacrifice offering, meaning no additional admin for employers or drivers.
Gurjeet Grewal, CEO of Octopus Electric Vehicles, said the move makes electric cars “even better value” by aligning insurance costs more closely with individual risk.
The announcement follows Octopus EV securing £2 billion in funding to grow its fleet from 40,000 to more than 75,000 vehicles, reinforcing the role of smarter cost structures in accelerating fleet electrification.