Association of British Insurers wants electric vehicles to replace written-off gas-powered cars

Association of British Insurers wants electric vehicles to replace written-off gas-powered cars

Encouraging consumers to make more sustainable choices, the Association of British Insurers (ABI) has suggested that drivers should go electric after their conventional gas-powered cars are written off. ABI director-general Huw Evans announced that British car insurers were mulling plans to “help” drivers who have had their vehicles written off to switch to electric vehicle (EVs).

Evans’ statement surfaced after the association unveiled its ambitious climate change roadmap for vehicle insurance providers, through which the association aims to help the industry neutralize its carbon footprint by the end of 2050. The plan was described as the most demanding and far-reaching carbon reduction roadmap for the car insurance sector. The plan not only covers car insurance but also includes pensions and other sorts of insurance.

The ABI wants vehicle insurance and long-term savings firms to invest a combined total of around £1 trillion in green infrastructure to help reduce the industry’s carbon footprint. However, the association stressed that the figure would depend on regulatory and market reform. It suggested that the government and industry regulators may need to change the existing rules.

In addition, the association wants car insurers to make policies to encourage the development of a sustainable secondary market for EVs. It also wants a “consistent practice,” allowing the reuse and recycling of zero emission, environment friendly EV charging equipment.

Speaking on the topic, Mr. Evans said, “I’m proud of the tireless effort from the ABI and its members to develop this roadmap which will help all insurance and long-term savings companies understand what they need to do to help us meet net-zero targets. The roadmap will ensure we take decisive steps so that our sector is a big part of the solution, not the problem.”

He stressed that the environmental crisis is the greatest threat being faced by people on Earth. Thus, all sectors need to make efforts to cut carbon emissions like never before. He acknowledged the fact that car insurance sector’s carbon footprint is amongst the most of any industry in the economy but the transition to EVs could help a lot in going green.

British Energy & Climate Change Minister Anne-Marie Trevelyan welcomed the ABI’s roadmap to zero-emissions, saying the association’s efforts combined with government policies would go a long way to tackle the problem of climate change.