Here’s what the US auto insurance industry really thinks about electric cars, how it affects your premium, and how to choose an electric car insurance company that will really back you up if you need help.
Can insurance companies adapt to change?
A recent one White book of the University of Illinois Urbana-Champaign and Argo Group, an underwriter of specialty insurance products, say EV battery and energy storage factories offer a big opportunity for insurers. In fact, battery manufacturing facilities tend to be well-funded, low-risk businesses with plenty of damage data to analyze. »
The white paper’s recommendations for insurance companies also apply to the electric car insurance industry. He suggests that insurers refine their ranking systems used to determine favoritism; solicit and obtain customer feedback on the insurance products they need most; and continue to model and compile new data on losses in new industries.
And as electric cars are rapidly being adopted in the US market, insurance companies must also quickly embrace change. Alex Hindson, Group Head of Risk & Sustainability at Argo Group, told Electrek:
Insurance is a sector that has a problem with innovation. It’s about data and willingness to take risks. So if insurance companies don’t understand something, they are cautious. »
Gas-powered cars vs. electric cars
Electrek also spoke to a former claims manager for a top 5 insurance company who asked not to be identified so we’ll call him John Smith. He explained the current state of the US auto insurance industry for context:
The US auto insurance industry is struggling right now – it’s losing a lot of money – because of COVID, because that’s when auto production came to a standstill. It is difficult to get spare parts for vehicles because