Motorists could be impacted by a major car insurance rule change (Image: Getty)
Major new changes could “elevate premiums” for hundreds of thousands of motorists across the UK, according to a leading expert.
the former with certain owners set to feel the sting.
The new system ranks cars from 1-99 instead of the old 1-50 system, meaning motorists get a more accurate picture of how much it will cost to insure vehicles.
More importantly, under the previous system, and could not be updated.
However, under the VRR system, a model’s ranking can change over time as manufacturers tweak machines.
Electric car owners could be caught out by the new rule (Image: Getty)
This means insurance prices can go up and down as more updates are added .
Chris Rosamond, current affairs and features editor at has stressed the system is “fairer” but warned some motorists could be caught out.
He explained: “Previously, car insurance was based on the more generic 1-50 group rating system, but factors such as an influx of Chinese EVs with insufficient spare parts back-up and a lack of critical repair information, or the introduction of expensive-to-fix tech such as LED headlamps or driver-assistance systems, were making it increasingly hard for insurers to assess risk accurately.
“As a result, premiums have skyrocketed – and we are all paying for this knowledge gap.”
DON’T MISS [COMMENT]
The updates take into account the ‘repairability’ of models as part of the insurance rating score with electric owners likely to be most affected.
It means vehicles will now face higher insurance premiums if their model is considered to have a poor repairability score.
With battery technology still in its infancy, this may come back to bite the 1.9million EV owners later down the line.
Chris explained: “VRR could negatively impact EVs if the difficulty of repairing EV batteries pushes scores up, because we will start to see elevated premiums for models affected.”
It comes after the Association of British Insurers (ABI) reported repair costs for claims are up 28 percent on data recorded in 2023.
Officials at safety group have also stated EVs are “approximately 25 percent more expensive to repair than their petrol equivalents”.
They also state that electric models take “14 percent longer to fix” than combustion models. The new system will come into effect for all new models first registered after 1 August 2024.
But, Chris praised the general concept of VRR and stressed the rule could even improve quality across the motoring sector.
He said: “VRR is a more comprehensive – and much fairer – assessment of vehicles, which is great news for consumers.
“It highlights weaknesses in a way the industry has not seen before and will force manufacturers – including any new brands from China or elsewhere wishing to launch products here – to more closely consider repairability when designing new cars for UK roads.”