The Rise of EVs: Opportunities and Emerging Risks

The change has been visible on the roads for several years: electric vehicles (EVs), a novelty not so long ago, represent an increasing portion of the automobile traffic we encounter each day. In the UK, registrations of fully electric and plug-in hybrid cars have increased rapidly, rising from 744,823 vehicles (or 2.3% of all cars) in 2021 to 2.1 million (6.2% of all cars) by the end of 2024. Those numbers have continued to climb through 2025.¹ Public charging points for EVs far outnumber petrol stations in the UK: there are currently more than 100,000 charging points across the UK, with a new public charger installed approximately every 13 minutes.²

Considering the UK’s proposed ban on the sale of new diesel and petrol vehicles from 2030,³ the presence of EVs for both fleet and private use will only climb. And why not? As electric cars have continued to improve, the environmental and financial benefits of EVs have become increasingly clear to the public. A traditional car running on an internal combustion engine has a 30% efficiency rate, while a vehicle running on electricity has an 80% efficiency rate.⁴ An electric car owner pays less for fuel, maintenance and tax. Consumers and businesses alike are ready to buy EVs, and corporations and governments are providing incentives to encourage them.

Still, any new technology generates new risks and challenges that must be understood and managed. EVs should be thought of not simply as traditional vehicles that must be plugged in, but as batteries on wheels. Most of the batteries running electric cars are lithium-ion (Liion) batteries, which are energy-dense yet lightweight, making it possible for manufacturers to provide a powerful charge in a small amount of space. Liion batteries are commonly found in a range of other portable electronics for these reasons – and they are considered safer than many other alternatives.

Lithium-ion batteries: power and hazards

Advances in lithium-ion batteries have made the growth of EVs possible, but these batteries have generated high-profile losses due to potential safety hazards. In 2025, the British Safety Council reported that UK fire services were now responding to “at least three Liion battery fires a day” (across devices and transport) and that that the number of fires caused by Liion batteries almost doubled from 2022–2024.⁵

To be sure, such incidents are still rare and lithium-ion technology is generally considered safer than other power sources. Research from the Energy Saving Trust found that there is only a 0.0012% chance of an EV catching fire, compared to a 0.1% chance of a petrol or diesel vehicle catching fire.⁶ However, this could change as the EV fleet grows and vehicles age.

As with anything we incorporate into our daily lives – particularly new technology – it’s important to understand the hazards EVs bring, as well as that we can do to minimise them and improve the likelihood of a safe experience

Understanding the hazards of lithium-ion batteries

Since Liion batteries have been the source of the highest-profile losses the EV industry has faced, it makes sense to examine how the batteries generate risks.

Liion vehicle batteries are made of many smaller cylindrical or prismatic cells that are linked together to meet the required power capacity. A cell is made from an outer case (normally metal) with a hole that releases excess pressure in the event of overheating. Inside the case is a spiral that consists of three thin layered sheets – the positive cathode, the negative anode and a thin sheet of microperforated plastic separating the two. This layered spiral is submerged in an organic electrolyte.

When the cell is charging, lithium ions move through the electrolyte from the positive electrode to the negative and they do the reverse when discharging. The greater the power a vehicle needs, the more cells that are required for it to operate.

It isn’t unusual for a family’s electric car to contain many hundreds of cells, while a heavy-goods vehicle could easily contain thousands. Manufacturers and insurers must consider a number of risks associated with these batteries, including battery runaway, normally occurring vehicle damage or poor handling of cells during maintenance, fires related to charging areas, and slips, trips and falls caused by trailing cables.

Risks of thermal runaway and damaged batteries

The term thermal runaway refers to an unstoppable exothermic (heat-producing) reaction. This occurs when a Liion battery is damaged or exposed to significant heat. During the runaway, the temperature of the battery cells climbs rapidly, causing the cells in the battery to break down and release flammable gases, which, in turn, create the risk of fire and explosion. Once the cell ignites, it produces oxygen and hydrogen, further fuelling the exothermic reaction.

This is of particular concern in vehicles because once the thermal runaway is underway, it becomes difficult to fight the fire. The intense heat exposes the remaining cells in the batteries, igniting them and exposing additional cells to the heat. Extinguishing this fire poses additional challenges. While water will reduce the temperature of the battery, the exposure of lithium to water generates hydrogen, which is highly flammable and, in turn, further increases the intensity of the fire.

The Essex County Fire & Rescue Service reports that while a conventional car fire can usually be extinguished with 1,000–2,000 litres of water, an EV fire may need up to 30,000 litres due to damage-induced thermal runaway in the Liion battery. They also warn that these fires can reignite hours or even days later.⁷ When this kind of fire occurs in an enclosed space underground or in a carpark, the intensity of its heat can cause it to spread quickly and become all the more difficult to control. Off-gassing (release of gases from Liion batteries experiencing thermal runaway) presents an additional risk, as vapour clouds can build up in unventilated spaces and may explode.

Several factors can lead to thermal runaway and most relate to misuse or mishandling of the battery. Exposure to excessive heat could cause the cell separators to melt, releasing flammable gases. A puncture or other form of impact could crush or deform cells and lead to an internal short circuit. Excessive charging could stress the battery, while too little charge can short-circuit the battery, triggering a thermal runaway. Manufacturing defects could also lead to problems.

To minimise these risks, it’s important to store batteries properly, shield them from heat sources and physically protect batteries in use – especially those in fleet vehicles. Using them within warranty conditions and disposing of batteries in a timely way with licensed contractors is critical too.

“Although advanced battery-management systems and alerting technologies are improving safety, there’s still a lot we don’t know about how reliable these controls are in the most demanding real-world conditions,” said Richard Harrison, Head of Risk Control at Travelers Europe. “Fleet charging brings its own challenges. If you consider a depot with refuse trucks charging side-by-side, a single battery fire could escalate rapidly, potentially causing a multimillion-pound loss.”

Fire hazards and electrocution risks of EVs

As the number of EV charging points climbs across the UK, they must be safely integrated into supporting construction – both new and existing. Designated public or work charging points should be fit for purpose. Further, a fire risk assessment should identify intelligent detection and alarm systems wherever EVs are parked and charged in large numbers as damage to one can quickly spread to many.

Indeed, when a fire erupted at an EV charging station in the car park of a retail store in California in September 2025, flames spread from the initial vehicle to at least two vehicles nearby.⁸

Collisions and charging-related risks

Businesses that operate public charging points have a range of risk mitigation factors to consider, such as:

• They must ensure the layout of the charging area reduces the risk of possible impact or collision.
• Charging of vehicles should happen away from main entry and exit points, as well as any high-traffic routes.
• Any vehicle-charging interface should be protected using crash barriers, signage and suitable separation distances to reduce the speed of a collision, along with the potential for one.
• Charging locations must be separated from any combustible materials and periodic checks must be carried out to protect safety.

The same risk management principles apply to domestic and street-side charging locations, with some additional factors to consider, such as:

• These locations should not use domestic multi-socket extension leads when charging.
• The same is true for daisy-chain extension leads, which increase the risk of an electrical fire.
• If extension leads are needed, a suitable outdoor reel cable must be used.
• Charging cables should be purchased from reputable retailers or the manufacturer and meet UK safety standards (CE). They should be checked regularly and replaced if any damage is apparent.
• Charging should be done within a fire-sterile area and from a dedicated wall box charging unit installed by a licensed electrician. 

Slips, trips, falls and professional liability

When selecting a charging location, consider the likely activity surrounding the area in order to limit potential hazards. It is possible that public charging areas may attract more foot traffic, for example, and will need to be inspected to minimise slips, trips and falls due to:

• Potholes
• Obstructed pathways
• Poor lighting
• Unkempt vegetation
• Snow or ice.

At street-side charging areas, owners should avoid having cables cross pavements or walkways – or manage them as well as possible by using shorter cable lengths or cable covers.

Silent operation and pedestrian safety

In the UK, the silent operation of electric and hybrid vehicles has raised safety concerns for pedestrians. One British study published in 2024 found that pedestrians were twice as likely to be struck by an electric or hybrid-electric car compared with a petrol or diesel vehicle, and the risk was about 2.5 times higher in urban settings.⁹ The quieter nature of these vehicles means pedestrians may not hear them approaching, especially at low speeds or in noisy city environments.

The shift toward more autonomous driving systems introduces added layers of liability and safety complexity. Research from Coventry University in 2025, for example, highlights how pedestrians crossing behaviour is influenced when automated vehicles are present. It suggests that autonomous vehicles must adopt more cautious and clearly signalled driving styles to mitigate risk.¹⁰ As vehicles become quieter and more automated, the implications for pedestrian awareness and driver/operator liability grow. A sound generator known as an Acoustic Vehicle Alerting System was mandated in the UK for all new electric and hybrid vehicles registered from July 2021 to mitigate these risks.¹¹

Still, fleet operators will have to recognise that quieter EVs may continue to limit pedestrian awareness. Additional strategies—such as enhanced audio alerts, thoughtful vehicle placement and pedestrian-interaction policies—may be needed to manage risks.

Putting EV risks into perspective

The early years and decades of any life-changing innovation require careful study and adjustment. While petrol-powered cars became widely available in the early 20th century, it wasn’t until the late 1920s when the automobile industry acknowledged the need for such safety measures as shatter-resistant windscreens and four-wheel brakes.

“EVs are becoming more common, but our real-world experience with their long-term use and charging environments is still relatively limited,” Harrison said. “As a result, risk-control strategies are evolving in real time. As the EVs on the road now get older, we’ll get a better understanding of the risks. For now, it’s important to have a hierarchy of controls in place to help manage potential hazards.”

When you understand the hazards, you can design better protections around them until new-and-improved replacements are available. For those purchasing EVs for personal or fleet use, that means knowing the risks of Liion batteries, caring for them properly and limiting the potential for accidents that can pose safety and financial threats.

Contact Travelers to learn more about managing EV-related risks and ensuring your business is protected with the right auto insurance coverage.

Sources
¹https://www.zap-map.com/ev-stats/ev-market
²https://octopus.energy/press/uk-hits-100000-public-ev-chargers/
³https://www.gov.uk/government/speeches/phasing-out-the-sale-of-new-petrol-and-diesel-cars-from-2030-and-support-for-zero-emission-vehicle-zev-transition
⁴https://uk.smart.com/en/drive-electric/are-electric-cars-energy-efficient/
⁵https://www.britsafe.org/safety-management/2025/the-hidden-risks-of-lithium-ion-batteries
⁶https://energysavingtrust.org.uk/report/are-electric-vehicles-a-fire-risk/
⁷https://www.essex-fire.gov.uk/news/essex-firefighters-adapt-new-hazards-electric-vehicle-fires
⁸https://ctif.org/news/fire-charging-ev-spread-multiple-car-fire
⁹https://www.lshtm.ac.uk/newsevents/news/2024/pedestrians-twice-likely-be-hit-electric-or-hybrid-electric-car
¹⁰https://www.coventry.ac.uk/news/2025/pedestrian-avs/
¹¹https://www.rnib.org.uk/news/new-electric-vehicles-safety-milestone/

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