Octopus EV and Admiral Pioneer deliver EV insurance for salary sacrifice drivers

EV-only leasing business Octopus Electric Vehicles has partnered with Admiral Pioneer to develop fairer insurance for drivers getting an electric car through salary sacrifice.

The partnership aims to remove one of the pain points for drivers switching to electric: insurance costs that do not reflect how individuals actually drive. Instead of traditional fleet-rated pricing – where everyone pays an average – this new model prices insurance based on individual risk.

Octopus EV estimates that when the offering launches in spring, more than 3 in 4 new salary sacrifice drivers will benefit from lower insurance costs, with an average driver saving close to £550.

The insurance remains fully integrated into Octopus EV’s salary sacrifice package, so drivers get one clear monthly cost without the need for extra administration. Drivers can also carry over their existing no claims bonus from previous policies, helping reduce premiums further.

Octopus and Admiral Power say moving beyond fleet averages, 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, chief executive 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, chief executive of Admiral Pioneer, said: “We’re 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. This partnership shows what’s possible when forward-thinking brands come together.”