A new partnership is promising smarter and fairer insurance for electric vehicle (EV) salary sacrifice drivers
Instead of traditional fleet-rated pricing - where everyone pays an average - Octopus Electric Vehicles and Admiral Pioneer, part of the Admiral Group, have developed a new salary sacrifice insurance model that prices insurance based on individual risk.
Octopus EV estimates that, when the offering launches in spring, more than three-quarters of its salary sacrifice drivers will benefit from lower insurance costs, with an average driver saving close to £550.
The new insurance offering will remain fully integrated into Octopus EV’s salary sacrifice package.
Drivers are also able to carry over their existing no claims bonus from previous policies, with the potential of helping reduce premiums even further.
By moving beyond fleet averages, Octopus EV says that the new insurance better reflects real-world driving and supports a fairer deal for EV drivers, without adding complexity to the salary sacrifice experience.
Gurjeet Grewal (pictured above), CEO of Octopus Electric Vehicles, said: “Salary sacrifice has become one of the most powerful ways to help drivers switch to electric - but the insurance experience hasn’t always kept pace.
“This partnership changes that. By pricing insurance around the individual, not the average, we’re making EVs even better value and keeping the experience simple from day one. It’s another step towards making electric the obvious choice.”
Emma Huntington, CEO of Admiral Pioneer, explained that it is partnering with Octopus to bring “real innovation” to EV salary sacrifice, moving beyond traditional fleet pricing to offer insurance based on individual risk.
“By combining our deep insurance expertise with Octopus’ digital-first approach, we’re delivering smarter, fairer, and more personalised insurance for electric drivers,” she added.
“This partnership shows what’s possible when forward-thinking brands come together.”
Octopus EV believes that partnership strengthens its end-to-end salary sacrifice proposition by making it even easier for employees to make the switch to electric.
The new insurance patnership comes after Octopus EV announced in November, it had received new backing from leading banks to almost double its funded fleet.
The EV leasing company and salary sacrifice specialist has extended and upsized its funding line from banks Lloyds, Morgan Stanley, and Crédit Agricole CIB, bringing its total EV funding to £2 billion.
The deal will allow Octopus to grow its EV fleet from 40,000 cars currently to more than 75,000 once all funds are deployed.
Read how Octopus EV grew from start-up to one of the UK’s biggest sal/sac providers.
