Electric vehicle (EV) benefits are becoming increasingly popular among UK companies as part of their tax planning, enhanced employee benefits, and to improve their corporate social responsibility. As a result, Jackson Lee Underwriting (Jackson Lee) has launched EV early termination cover for companies participating in salary sacrifice schemes.
An EV salary sacrifice scheme enables an employee to pay for an electric car monthly using their gross salary (before tax and other contributions are deducted), the same as other salary sacrifice schemes, such as childcare, cycle to work schemes, or pension contributions. However, if the employee leaves the company, the employer becomes financially responsible for any early termination charges from the leasing company.
Underwritten by Great American Insurance International (UK) Limited, Jackson Lee’s EV early termination cover is expected to enhance the portfolio of brokers with corporate clients considering salary sacrifice schemes. It is one in a range of EV-related policies that the MGA plans to launch this year.
Early termination insurance protects companies offering EVs as part of a corporate salary sacrifice scheme against the financial penalties of early redemption, including cases where an employee resigns, loses their license on medical grounds, or falls ill.
Nick Mohan, joint managing director at Jackson Lee, said the MGA predicts that businesses will see growing demand for EVs as they consider their environmental strategy.
“Many governments have announced their intent to be fully battery electric by 2030. This is a sizable and growing market opportunity for brokers. Electric vehicles are here to stay, and current salary sacrifice schemes make them a very attractive proposition right now,” Mohan continued.
“Next April’s national insurance increase will only make the scheme more attractive. We have a reputation in the market for spotting market needs and creating innovative niche insurance products just at the right time for brokers to maximise the market opportunity, and we’re delighted to launch this new product.”
