EV leasing firm Octopus Electric Vehicles has partnered with Admiral Pioneer, part of the Admiral Group, to develop smarter, fairer insurance for drivers getting an electric car through salary sacrifice.

The new partnership tackles the key issue of insurance costs that don’t 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.

It’s expected to bring better value for the vast majority of drivers. Octopus EV estimates that when the offering launches in spring, more than three in four new salary sacrifice drivers will benefit from lower insurance costs, with an average driver saving close to £550.

The offering stays just as simple. Insurance remains fully integrated into Octopus EV’s salary sacrifice package, so drivers get one clear monthly cost with no extra admin.

Drivers can also carry over their existing no claims bonus from previous policies, helping reduce premiums even further.

By 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.

Octopus EV said the partnership strengthens its end-to-end salary sacrifice proposition by making it easier for employees to make the switch to electric.

Gurjeet Grewal, 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, added: “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.”