On the 27th of July 2017, the Telegraph newspaper reported on government plans to ban the sale of all petrol and diesel cars by the year 2040 – in an attempt to force a switch to environmentally cleaner electric and hybrid electric vehicles.
Although the plans could be described as a “tall order”, given the demands they are likely to make on energy production capacity, it is probably not too early to start thinking about how the switch to green cars might affect you if you are a chauffeur running a private hire business.
Such a radical departure from the conventionally-powered cars you are probably driving at the moment is almost certain to have an impact on your chauffeur insurance.
Leading the way
An article in the Guardian newspaper on the 28th of November 2017, suggests that licensed hackney carriages in London have already started such a switch. The London Taxi Company – makers of the iconic London taxi – has rebranded itself as the London Electric Vehicle Company (LEVC) and trials have begun of six new electric hybrid cabs.
If the present experiment proves successful, London’s famous “black cab” may need to be renamed the “green cab” (although those used for the current trials are still painted black), with London’s mayor, Sadiq Khan, boasting to promote “the greenest taxi fleet in the world”.
Chauffeuring a green private hire car
With London potentially setting a trend and the government having pinned its colours to the mast of all-electric and electric hybrid cars by 2040, it seems inevitable that private hire fleets are likely to follow suit.
If you are looking to steal a march on things to come and are thinking of chauffeuring a green vehicle, what impact is this likely to have on your private hire chauffeur insurance?
An immediate concern is likely to be the cost of obtaining insurance for such a relatively innovative – and therefore expensive – vehicle as an electric or hybrid car;
In an article published by the Times newspaper on the 28th of July 2017, it was reported that insurance for an electric car is currently an average 44% more expensive than cover for a conventionally-powered vehicle.
Set against this, however, is that “green” electric cars are still a relative novelty – there are still only around 100,000 Ultra Low Emission Vehicles on British roads, according to Fleet News on the 1st of November 2017. This compares with a total of the 37.5 million registered vehicles recorded by the DVLA up to the 15th of June 2017.
As sales of electric vehicles increase, prices are likely to fall – and, with that reduction, insurance is also almost certain to become cheaper.
What you may be sure of, however, is that specialist providers of insurance for chauffeurs, such as ourselves here at Aston Scott, are committed to maintaining as highly competitive prices for insurance premiums as possible. That is our commitment whether you continue to chauffeur a conventionally-powered private hire car or are tempted to switch to a greener electric or hybrid version.
If you would like to discuss chauffeur insurance why not give us a call today on 03300 085045.