New electric vehicles made up 7.2% of global car sales in the first half of 2021; a continuous rise for the third year in a row as government bodies across the world put them front and centre of their carbon emissions reduction strategies.
Vehicle pollution is one of the biggest contributors to global warming and quite simply, there will soon be no other choice than to choose alternative fuels.
What’s more, whilst the public have previously been the focus of these efforts, fleet operators are now top of the pile given their usage of Britain’s transport network and impact on current emission levels.
Are fleets already adopting electric vehicles?
Yes. Studies found that almost 30% of fleets are already using EVs, whilst 46% have confirmed plans in place to convert to EVs, and 16% are actively having the discussions today.
Out of those who have not yet made the switch, 50% noted that in five years’ time they can predict they will have, with 35% committing to a two-year transition plan – all well in time for the official ban against sales of new petrol, diesel and hybrid vehicles in 2030.
Do electric vehicles have more claims?
No. EVs are some of the safest cars on the road.
For example, roadside fires reported over the years involving combustion engines are a common claim, whereas EV batteries are less flammable than petroleum or diesel and feature sophisticated safety systems that maintain safe temperatures. However, electric vehicles can cause more risk if not handled properly. There is also a significant lack of repairers EV trained, which may cause issues with commercial vehicles and fleets across the country.
Furthermore, new cars are also tested by Euro NCAP (European New Car Assessment Programme), where they are given a maximum of a 5-star rating, plus a percentage score for each of the four areas: adult occupant protection, child occupant protection, vulnerable road user protection and safety assist.
These scores help to identify the physical safety of the vehicle itself and play a part in the claims handling process as a whole.
Do electric vehicles need specialist insurance?
No. Whilst businesses do have the option to take out a dedicated EV insurance policy if they wish, insurance providers are working to normalise electric vehicle ownership as much as possible, meaning a business wouldn’t need to take out any kind of specialist insurance cover.
Many mainstream insurance firms such as Aviva, LV, Direct Line and Admiral have all EV cover integrated into their quotation systems and are now included by general comparison websites too such as MoneySuperMarket or Compare The Market.
For us, our mission of changing traditions follows our years of global growth and success, shaking up the market to become digital front runners within the claims sector.
Our goal? To offer the most intuitive and forward-thinking solutions to insurers and repairer networks across the globe.
Is electric vehicle insurance cheaper?
Different factors affect your electric fleet insurance costs, but in some cases, yes, EV insurance can be more expensive.
The insurance industry generally applies a higher group rating as servicing and parts for electric vehicles are currently more specialised. For example, the lowest insurance group for a Volkswagen Golf is 7, compared to its electric equivalent Volkswagen e-Golf, which is insurance group 15.
However, it’s important to keep in mind that the insurance group rating of a car is only one factor considered when insurance companies calculate your quote. The other key factor is the risk profile of the driver.
As a result, when working out the insurance group of vehicles, brokers consider what the cost and availability of spare parts would be, the ease of finding a qualified or specialist repairer and the extent of what repairs would need to be carried out.
Will the availability of electric vehicle parts and repairs impact insurance claims?
As with any newly emerging technology, there is currently a high cost for sourcing specialised EV parts, with batteries, for example, equating to 37% of the cost of an electric vehicle in 2020.
There’s also the fact that any EV repair needs to be handled by specialist mechanics – something the UK are knowingly in short supply of.
In fact, the Institute of Motor Industry (IMI) recently called for a significant government investment of £15 million towards EV technician training, highlighting that the funding would play a critical role in building the much-needed skillset of 75,000 vehicle technicians.
This, combined with the recent supply chain delays and parts shortages across the globe, makes repairing an EV a costly and timely process.
Is the data ready for insurers to accurately handle electric vehicle insurance claims?
With GT Motive, absolutely. We pride ourselves in offering the very latest references, labour times and spare parts prices in our cloud-based estimating solution, including both EV and internal combustion engine details.
This allows our customers to instantly access the exact right data they need, from any location that has web access. Whether that be insurers demanding accuracy, or repairers seeking comprehensive information.
But that’s not all.
We’re constantly updating our data points to ensure our entire supply chain, from bodyshops to brokers, have the most precise data, always. For example, new vehicle models are added bi- weekly to our OEM prices, with data being updated daily in our solution. This helps us to offer a 96-98% car parc coverage, making our system a highly reliable tool for a claims department.
At GT Motive, we understand that automotive and insurance players need this data, along with sophisticated technology and service to automate their processes.
As we near closer to the 2030 EV roll-out, insurers, brokers and bodyshops alike, can all rely on our estimating solution to support them in the repair and electric vehicle insurance claims process.
Keen to find out more?