Current Issues for Insuring Electric Vehicles
The UK has committed to making almost all cars zero-emission by 2050, with many arguing it should be even earlier. Sales of Electric Vehicles (EV’s) have risen by 70% compared to last year, things are certainly changing, but how could this affect your organisations insurance for a fleet of EV’s?
There are certainly several concerns that EV’s have raised for insurers.
- EV technology is still relatively young and the cars are relatively expensive so the cost to repair, or replace, specialist parts tends to be higher.
- As electric engines make little or no noise, there is an increased risk of collisions as pedestrians and other road users may not hear the vehicles approach. Research shows that electric cars are about 40% more likely to hit a pedestrian than a conventional vehicle.
- Whether the battery is hired or leased increases the complexity of claims for electric vehicles. Car manufacturers Nissan and Renault initially only sold their new electric vehicles with the option of leasing the car’s batteries. This gave the consumer peace of mind that, if the car’s battery were to drop below 75% of its original capacity, the manufacturer would replace it for free. For example, if a vehicle is involved in a collision and the car’s battery is damaged, it is unclear whether the driver, or the manufacturer would be responsible for replacing it.
- As EV’s need to be plugged into roadside charging points, for long periods, the driver owes a duty of care to members of the public that could trip and injure themselves on the charging cable.
Given the points above, it’s worth considering that advancements in EV technology are ongoing and as EV’s become more commonplace, factors such as repair costs and more insurers entering the market, will likely lower costs and insurance premiums in the future. This could make it easier to help reduce the impact of harmful air pollution and noise pollution on our environment.