why and how did we get to this point?

Although electric cars are known for their low cost of use, insurers are starting to reveal hidden costs associated with insuring these vehicles. From repairability issues to manufacturers' strict rules, insurers are threatening to skyrocket insurance policies.

MG4 XPower // Source: Frandroid

If the purchase price is still a subject of fear on the part of motorists, another element must also be taken into account. This is the cost per use, which includes maintenance, insurance and even fuel, among others. And in this case, the electric car is clearly the winner, despite the increase in the price of electricity. Especially since insuring an electric car is generally less expensive than for an equivalent thermal vehicle.

However, insurance companies are starting to shy away from electric cars, as reported Numerama Vroom And Automobilwoche.

Heavy technical and financial constraints for insurers

They refuse to insure certain models or significantly increase their prices. A means of pressure which can be explained by several reasons, in particular problems linked to batteries, the repairability of bodywork elements and obtaining spare parts.

Longer lead times for parts and more expensive labor are starting to take a toll on insurance companies. In addition, certain rules imposed by manufacturers regarding electric cars are weighing down the finances of insurers. If the airbag is triggered during an impact, the electric car is considered irreparable, because some manufacturers require the entire battery to be changed as a safety measure, even if it is not damaged.

A manufacturer rule that poses a problem

This constraint poses a real problem for insurers, who cannot carry out a diagnosis on the battery before its replacement. The car is therefore considered a dead loss for the insurer. This situation can only worsen over the years, until it becomes a new electric car scandal.

Especially since means exist today to carry out precise diagnostics of the condition of a battery. High body component costs and long wait times for parts and labor compound the situation.

Uninsurable models: the case of Chinese brands

Certain models of electric cars, in particular those of Chinese brands, are completely refused by insurers, as Autoexpress points out. Insurers' repair networks face technical and cultural problems with these brands. Parts shortages and lack of technical assistance are obstacles to the insurability of these vehicles.

This phenomenon does not only affect newcomers to the automobile market, but also more established brands like BYD, ORA (from Great Wall Motor, the brand is not yet available in France) and even MG. Insurers therefore find themselves in an impasse, forced to refuse to insure certain models or to increase their prices to cover the risks linked to electric cars.

Leave a Reply

Your email address will not be published. Required fields are marked *

Proudly powered by WordPress | Theme: Journey Blog by Crimson Themes.