This is what the US car insurance industry really thinks about EVs, how it affects your premium, and how to choose an insurance company for your EV that really will have your back if you need help.
Can insurance companies embrace change?
A recent white paper by the University of Illinois Urbana-Champaign and Argo Group, an underwriter of specialty insurance products, asserted that EV and energy storage battery factories offer a great opportunity for insurers. That’s because battery-making facilities “tend to be well-funded, low-risk enterprises with plenty of loss data to analyze.”
The white paper’s recommendations for insurers are also applicable in the EV insurance sector. It suggested that insurance companies refine their ranking systems used to determine favorability; ask for and engage with feedback from customers on what insurance products they need the most; and continue to model and compile new loss data across emerging industries.
And because EVs are rapidly being adopted in the US market, insurers need to also rapidly adopt change. Alex Hindson, the group chief risk & sustainability officer at Argo Group, said to Electrek:
Insurance is an industry that has a problem with innovation. It’s all based on data and appetite for risk. So if insurance companies don’t understand something, they’re cautious.”
Gas cars vs. EVs
Electrek also spoke with a former claims director of a top five insurance company who asked to not be identified, so we’ll call him John Smith. He explained the current state of the US car insurance industry for context:
The US car insurance industry is hurting right now – losing a lot of money – because of COVID, because that’s when car production stopped. It’s difficult to obtain parts for vehicles due to supply chain issues. There’s also a chip shortage for new cars. So what that’s doing is raising the used car market prices by about 40%.
If you have an accident in a used car, it costs the insurance company 30-40% more to repair it due to the cost of parts and labor.
Insurance companies are trying to raise their rates to be profitable, and they’re throwing electric vehicles into this because they’re currently taking a bath. They actually don’t want to write new policies because they’re losing money.
And Hindson explained why some car insurance companies don’t offer competitive premiums for EVs:
If an insurance company offers high premium for electric vehicles, it’s for one of two reasons: They either don’t know what they’re doing and price high for uncertainty, or they do know what they’re doing and don’t want to do it.”
In other words, car insurance companies exercise caution if they don’t understand something.
Gas cars often have lower insurance rates, and it’s not because they’re safer. It’s because there’s an enormous amount of data on gas cars that insurance companies can tap into. They’re a known quantity.
But some insurers have decided they want to pursue the emerging EV market, so they’re gathering their own data. So if their prices are more competitive, it may be because they’re building more of the market share.
Neither Hindson nor Smith cited EV fires as a risk factor for insurance companies. Hindson also noted that if an EV gets into an accident, it’s more likely to be declared totaled due to the weight and expense of the battery.
How to get the best car insurance policy for EVs
Some insurance companies are trying to partner with EV companies, and specifically with Tesla, because EV makers have the background knowledge and data they seek.
Teslas need to be repaired by certified Tesla locations, so it takes a lot longer to do the repairs because they’re backed up. When it comes to non-Tesla EVs, many dealers require you to come to their facilities.
The average length of a car rental when your car is being repaired, Smith explained, is between 12-15 days. For Tesla drivers, it averages about 20-25 days. So it costs the insurance company about $36 per day on average for a rental car.
So the cost of premiums has more to do with repair bottleneck and the limited number of facilities to do the repairs than the car’s safety rating.
Smith shared the best way for EV owners to get a reasonable premium and good coverage:
Shop around, because so many insurance companies have a better EV book than others. Progressive and Allstate, for example, are good at using technology to understand data – they put something in your car to better understand your driving habits, and that brings down the premium. [Editor’s note: Smith did not work for Progressive or Allstate.]
Choose a company who wants to embrace and better understand electric vehicles.
When you’re shopping around, ask the insurance company, “Are you partnered with electric vehicle repair facilities?” If they’re not, move on to the next company. In the long haul, it will so much easier to repair if you have an accident.
Hindson also echoed this sentiment, advising that drivers seek insurance companies that use telematics, because car insurance companies love data. And data will eventually help them catch up.
Hindson said:
[The insurance industry] can’t do well by excluding things. We can’t win by playing defense. The problem will solve itself with time.”
Smith echoed this sentiment:
Driving an EV has so many positives. The world just needs to catch up.”
Photo: Tesla
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French infrastructure specialists Proviridis have partnered with EVSE manufacturer Kempower to deliver a novel, underground charging solution for electric semi trucks designed to easily integrate into existing truck depots.
By installing its high-powered charging cabinets underground and integrating the charging cables into a solid metal pipe, Kempower and Proviridis have been able to make room for high-powered charging points in an existing truck depot that didn’t have enough space to install either conventional EVSE or overhead “drop lines.”
For the pilot, the metal pipe is painted in a striking yellow color to make it easier to see while maneuvering the lot, and keeping the dispensers themselves more protected than conventional concrete bollards. The 600 kW power cabinet is positioned a few yards away – a typical space-saving Kempower solution – and connected to the charge points by underground cable.
Proviridis believes their solution provides enough of a competitive advantage that fleet buyers looking to electrify will be eager to give it a try.
“The product is durable across a wide spectrum of temperatures and conditions, requires minimal ventilation, and can cater for a wide range of customer needs,” explains Olivier Verdu, Technical Director at Proviridis. “These are features which perfectly place the Kempower solution for this type of charging configuration in a logistics environment.”
In honor of Black Friday and Cyber Monday, eBike specialist Buzz Bicycles is offering an exclusive discount for Electrek readers on its Centris Class 2 Folding Bike.
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Buzz Bicycles is back with an exclusive new deal
Buzz Bicycles has been a mainstay on Electrek for a few years now, as we have covered several of its electric bikes, which suit riders of all skill levels and help them “Buzz through life.” Buzz is an omnichannel eBike brand that prioritizes direct-to-consumerism and has found success in its mission to deliver ultimate transportation solutions at an excellent value for its growing base of eBike enthusiasts.
The company strives to deliver riders a “Wow moment,” which is usually brought on as they feel the pedal assist function kick in. This feature delivers all you need to conquer hills and longer rides while enjoying new adventures with friends.
The Buzz team has utilized decades of industry experience into its portfolio of eBikes, all conceived and designed in Dayton, Ohio. The company, which operates under the United Wheels umbrella alongside brands like Huffy Bicycles, Niner Bikes, and Batch Bicycles, has adopted an ethos that the freedom of riding should be fun and accessible for everyone, no matter what adventure lies ahead.
By leveraging the global presence of its parent company, Buzz Bicycles can make good on its promise to deliver affordable eBikes that are comfortable, powerful, and safe, much like the Centris Folding eBike, which is as versatile and compact as it is fun. The exclusive deal Buzz Bicycles is offering on the Centris makes it even more fun. You can take advantage of it below.
But first, you’ll want to learn about the capabilities of this foldable eBike to truly understand its value, as well as what accessories are available to level up your purchase.
The Buzz Centris is an easy to ride foldable eBike for all
The Buzz Centris is a Class 2 Folding eBike built for comfort and convenience no matter where you take it. At full size, the Centris’ step-through frame offers a low step-over height of just 16 inches, perfect for riders of all sizes, enabling easy transitions from ground to saddle for its riders.
When you’re not riding, the Centris from Buzz Bicycles folds neatly to 34 inches in length and 22 inches in height, making it easy to store at home or to carry in a vehicle on the way to your next ride. Furthermore, the assembled bike only weighs 68 pounds, making it easy to transport.
You can easily navigate tougher terrain on the Centris thanks to the eBike’s 20″ x 4″ knobby tires and front suspension. The bike is powered by a 48V, 500-watt-hour (Wh) battery pack that can propel it to a top speed of 20 mph for an all-electric range of up to 40 miles on a single charge.
Additionally, this folding model from Buzz Bicycles comes equipped with both a front and rear rack, offering versatile cargo-carrying options so you can customize your ride with a variety of Buzz accessories.
Like all Buzz eBikes, the Centris is tested and deemed compliant with the UL2849 standard. This standard covers the entire electric bicycle system, including the motor, battery, controller, and charger, offering the highest safety standards for added peace of mind.
The Centris Class 2 folding bike from Buzz is available in two colors: Gloss White or Matte Black. This $1,199 eBike is currently reduced to $899 – and you can score an additional $200 off with this exclusive promo, but only for a limited time.
With the purchase of any Buzz eBike, including the Centris, you are guaranteed the following:
10-year limited warranty (lightweight aluminum frame protected for full 10 years)
2-year limited warranty (electrical components covered by 2-year warranty for peace of mind)
6-month limited warranty (additional bike components protected by a 6-month warranty)
Are you interested in the Centris from Buzz Bicycles? You’ve come to the right place. Starting today, while supplies last, you can take advantage of an additional $200 off the sale price by using promo code “ELECTREK200.“ That’s a $500 discount in total!
We highly recommend perusing Buzz’s entire lineup of products. They are designed for commuters and casual riders, with technology and features that help you quickly feel comfortable riding. If you are new to the world of E-transportation, Buzz Bicycles is the brand for you.
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With up to 500 km (310 miles) of all-electric range, the new Mercedes eActros 600 electric semi truck was designed for long-haul trucking – and now, it’s officially in production at the company’s Wörth plant in Bavaria.
“The start of series production of our eActros 600 is a further proof of our ambition to transform the industry,” offers Karin Rådström, CEO of Daimler Truck. “With a range of 500 kilometers on a single battery charge, our eActros 600 is addressing the long-haul segment in Europe which is responsible for two-thirds of CO2 emissions from heavy road freight. Our battery-electric long-haul truck will therefore make a real difference.”
In addition to the 600’s additional range, the newest eActros marks another milestone by becoming the first electric Mercedes semi to be manufactured on a single line (the eActros 300/400 and eEconic leave their standard production lines to have their electric drive components installed at Mercedes’ Future Truck Center in Wörth).
“With the start of series production of the eActros 600, we are expanding our Wörth product portfolio with an important vehicle for the future,” says Andreas Bachhofer, Head of the Wörth site and Production at Mercedes-Benz Trucks. “Construction of this first battery-electric truck made in Wörth will be fully integrated into the existing assembly hall, flexibly alongside the manufacturing of combustion-engine trucks. This means that we are ideally positioned for the production of larger quantities. Our production team is well prepared for the successive ramp-up over the coming months.”
The new electric semi truck features a 600+ kWh battery (hence, eActros 600) that sends power to a new, highly efficient electric drive axle developed in-house by Mercedes-Benz, good enough to “be able to travel significantly more than 1,000 kilometers per day. This is made possible by intermediate charging during the legally prescribed driver breaks – even without megawatt-charging.”