Electric vehicle (EV) sales increased by 76% last year as a rise in fuel costs, petrol shortages and environmental concerns are pushing more drivers to choose an electric car over diesel or petrol versions. These cutting-edge vehicles cost more to purchase and repair due to the specialist parts required, such as Lithium-ion batteries, and ongoing supply-chain issues which means insuring an EV is currently more expensive than traditional insurance.
According to a recent report* electric vehicle parts are being targeted by thieves which is another factor influencing the increase in insurance costs with charging cables often being stolen for resale. As more consumers are choosing to switch to electric vehicles and more cost-effective models are being launched insurance policies will need to start reflecting the price of traditional petrol engines.
Many insurers are now starting to offer Electric Vehicle specific policies and are utilising opportunities using connected car data solutions, such as driver and vehicle insights, to help keep the costs of cover down to ensure they can offer this rapidly increasing pool of policyholders a competitive solution.
At Trakm8 our enhanced ‘Connectedcare’ services work alongside our driver data analytics to give insurers a more detailed insight into their customer’s vehicles which can help manage and ultimately reduce the cost of EV insurance. This data gives insurers access to advanced insights that include true odometer readings, service intervals, battery state of charge, and other diagnostics data.
Along with driver behaviour insights, the combined data offers an in-depth overview of drivers with electric vehicles, empowering insurers with the data required to help truly understand their profiles and offer more accurate and personalised cover.
By utilising this data it enables insurers to offer wider portfolio of policies to EV drivers including PAYD and UBI insurance solutions that can help their policyholders make substantial savings on their insurance and further reduce the cost to insure electric vehicles.
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