James Geoghegan (Dublin Bay South, Fine Gael)
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669. To ask the Minister for Finance if he will consider a matter raised in correspondence (details supplied) in relation to insurance for electric vehicles; and if he will make a statement on the matter. [41897/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Substantial progress has been made under the 2020 Action Plan for Insurance Reform to improve the cost and availability of insurance. Reforms such as the introduction of Personal Injuries Guidelines, the rebalancing of the duty of care, and the banning of price walking in motor and home insurance markets have contributed to a more competitive environment. However, rising premiums in some parts of the market reflect external challenges such as global inflation, supply chain disruption, and increased vehicle technology costs.

In this regard, the Government is firmly committed to delivering further action to drive down insurance costs impacting households, motorists and businesses. One of the first steps to delivering this commitment is a new Action Plan for Insurance Reform, which was published on 24th July. As part of the development of this Action Plan, the Department of Finance undertook a wide-ranging public consultation which received over seventy detailed submissions from a broad spectrum of stakeholders. The Action Plan will advance reform under six key themes: transparency and affordability, competitiveness and availability, legal reform, fraud, climate protection, and innovation and skills. There are also several priority actions, focused on areas where the greatest impact on cost and availability can be achieved.

In relation to EV insurance specifically, Insurance Ireland- the industry body that represents insurers- have advised that while EV insurance is largely similar to insurance for traditional internal combustion engine (ICE) vehicles, there are some distinctions. According to Insurance Ireland, insurers have adapted policies to meet the needs of EV owners by offering features such as roadside assistance in the event of charge depletion, and coverage for stolen charging cables without impacting the No Claims Bonus. Some insurers also offer discounts for EV policies to encourage more sustainable choices.

In some cases, EV insurance may also be more expensive, and this is often because EVs tend to be more expensive to purchase than ICE vehicles, meaning the insured asset is of higher value. Insurance Ireland note that repair costs can also be higher, especially for older EVs, due to the complexity and cost of battery components and the lack of widespread technical expertise. Additionally, supply chain disruptions, including those linked to the conflict in Ukraine, have led to delays in sourcing parts and, in some instances, to EVs being written off for damage that would be considered minor in ICE vehicles.

It may interest the Deputy to know that Insurance Ireland also operates a free information service for those customers who have queries, complaints or difficulties in relation to obtaining insurance cover, which can be contacted at 01 676 1914 or at feedack@insuranceireland.eu. Similarly, Brokers Ireland, the representative body for insurance brokers in Ireland, has access to a wide range of providers and products, and can offer advice for customers when sourcing cover. Brokers Ireland can be reached at 01 661 3067.

In conclusion, Government remains firmly committed to achieving a competitive and sustainable insurance market in which this key financial service is affordable and available to motorists, households, businesses and community organisations right across the country.