27 November 2025

Preparing for the 2035 petrol ban: Insurance implications

By Road Runner
A person fills a vehicle's fuel tank with gasoline using a green fuel pump nozzle at a gas station.

The UK’s 2035 petrol ban marks a major turning point for the automotive industry. With the government set to prohibit the sale of new petrol and diesel vehicles, motor trade businesses face significant changes. This shift doesn’t just affect vehicle sales – it also has profound implications for motor trade insurance. Understanding these changes now will help businesses stay compliant and competitive.

Understanding the 2035 petrol ban

The 2035 petrol ban is part of the UK’s strategy to achieve net-zero emissions. From 2035 onwards, the sale of new petrol and diesel cars will be banned, with only electric and hybrid vehicles allowed. Key milestones include:

  • 2024–2030: Gradual increase in EV adoption and infrastructure development
  • 2030: Ban on new petrol and diesel cars originally planned but extended to 2035
  • 2035: Full enforcement of the ban

Impact on motor trade businesses

Motor trade businesses will need to adapt in several ways:

  • Vehicle inventory: Petrol and diesel models will decline, while electric and hybrid vehicles dominate stock
  • Compliance: New regulations around EV servicing, battery safety, and charging infrastructure will become mandatory

Sales strategy: Businesses must pivot to meet growing EV demand and educate customers on new technologies

Insurance implications

The transition to electric vehicles brings new challenges for insurers:

  • Risk assessment: EVs have different risk profiles, including battery-related hazards and higher repair costs
  • Policy adjustments: Traditional motor trade policies will evolve to cover EV-specific risks
  • Road risk cover: Businesses will need road risk cover tailored for electric and hybrid vehicles, ensuring test drives and deliveries remain protected
  • Specialist coverage: Expect new insurance products designed for EV servicing, charging stations, and battery storage

Preparing your business for the transition

To stay ahead:

  • Review your insurance: Ensure your current motor trade insurance covers EV-related risks
  • Train staff: Invest in EV maintenance training to meet compliance standards
  • Update your policy: Work with insurers to secure a motor trade policy that includes EV coverage and updated road risk cover
  • Plan ahead: Start transitioning your fleet and infrastructure now to avoid last-minute challenges

Final thoughts

The 2035 petrol ban will reshape the motor trade industry, and insurance is no exception. Businesses that act early will benefit from smoother compliance and reduced risk.

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