There’s no question that the auto insurance industry has seen some life-changing progress in recent years. One of those areas is in the sector of electric vehicles (EVs). Many people are curious about them but are also nervous about how purchasing one can impact their insurance. Let’s take a look at how EVs are actually impacting the insurance industry in a real, safe, and positive way!
EVs and their insurance changes
Realistically, there are three big sectors that have changed as a direct result of EVs and their growing prominence in modern society. Those areas are battery and insurance coverage, repair costs and insurance claims, and the safety rating of EVs.
Battery and insurance coverage
Of course, one of the most important parts of an EV is its battery. Historically, insurance companies didn’t want to cover EV batteries because they are the most expensive parts of the vehicle, and they needed replacement when used past its lifespan.
This has changed in that many EVs now have comprehensive warranties specific to their batteries that make it easier for insurance policies to simply “fill in the holes” for proper coverage.
Repair costs and insurance claims
Another problem area was that insurance companies work with specific repair shops, forms, and procedures. Since EVs require unique technicians that can repair EVs, and different tools, technologies, and repair times, all of those presets have gone out the window.
With the growing adoption of EVs, shops are now adjusting their teams and technologies with only a slight increase in the rates so that insurance companies can have good coverage options for repairs for EVs.
Safety ratings of EVs
One of the most exciting parts of modern vehicles (EVs as well as traditional vehicles) is that they can use technology to avoid collisions and other accidents that result in the need to file a claim. Vehicles equipped with this kind of technology actually earn savings for the insurance holder.
However, the repair requirements for those driver assistance technologies can also mean a higher bill if they are damaged and the insurance holder files a claim.
The insurance company is changing
What this all means is that the insurance companies offering coverage for EVs are expanding, and the actual coverage for them is often comparable to traditional cars. While there is still a need to progress further, the data so far shows that more and more car owners are going for EVs than ever before. Who knows what the future will hold for insurance policies and EV owners?
If you are going to be in the market for a new car, you can definitely consider an EV just like you would consider a classic gar-powered car. If you aren’t sure how EVs factor into your insurance company, get in touch with your local independent insurance agent and see what the options are! From policy additions, to entirely different policy choices for EVs, the world of insurance is absolutely being influenced by EVs and a customer’s preference for them as responsible vehicle purchases. Contact Harbour Insurance Services at (281) 520-4090 and get more information.