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 really has your back when you need help.
Can insurance companies embrace change?
Contents
- 1 Can insurance companies embrace change?
- 2 Gas cars vs. EVs
- 3 How to get the best car insurance policy for EVs
- 4 Does Tesla need Antifreeze?
- 5 Are electric cars cheaper to insure?
- 6 Do electric cars need servicing?
- 7 Are EV cheaper in the long run?
A recent white paper from the University of Illinois Urbana-Champaign and Argo Group, an underwriter of specialty insurance products, argued that EV and energy storage battery factories represent a great opportunity for insurers. To see also : Who owns the biggest insurance company?. That’s because battery-making facilities are “generally well-funded, low-risk ventures with a lot of loss data to analyze.”
The white paper’s recommendations for insurers also apply to the EV insurance industry. It suggested that insurance companies refine their rating systems used to determine preference; solicit and deal with customer feedback on which insurance products they need most; and continue to model and collect new loss data in emerging industries.
And as EVs are quickly adopted in the US market, insurers must also make changes quickly. Alex Hindson, group chief risk & sustainability officer at Argo Group, told Electrek:
Insurance is an industry that has a problem with innovation. It’s all based on data and risk appetite. So if insurance companies don’t understand something, they’re careful.”
Gas cars vs. EVs
Electrek also spoke to a former claims director of a top five insurance company who asked not to be identified, so we’ll call him John Smith. Read also : General Car Insurance Explained – Forbes Advisor UK. He explained the current state of the US auto insurance industry for context:
The U.S. auto insurance industry is currently hurting — losing a lot of money — because of COVID, because that’s when auto production stopped. It is difficult to obtain parts for vehicles due to supply chain issues. There is also a shortage of chips for new cars. So what that does is raise used car market prices by about 40%.
If you have an accident with a used car, it will cost 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 in here because they’re currently taking a bath. They don’t really want to write new policies because they lose money.
And Hindson explained why some auto insurance companies don’t offer competitive premiums for EVs:
If an insurance company offers a high premium for electric vehicles, it’s for one of two reasons: they don’t know what they’re doing and charge high prices because of the uncertainty, or they know what they’re doing and don’t want to. do it.”
In other words, auto insurers are careful 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 a huge amount of data on gas-powered cars for insurance companies to tap into. They are a known quantity.
But some insurers have decided they want to pursue the emerging EV market, so they’re collecting their own data. So if their prices are more competitive, they may build a bigger market share.
Neither Hindson nor Smith cited EV fires as a risk factor for insurance companies. Hindson also noted that if an electric car has an accident, it is more likely to be declared a total due to the weight and cost of the battery.
How to get the best car insurance policy for EVs
Some insurance companies are trying to work with EV companies, and Tesla in particular, because EV makers have the background knowledge and data they are looking for. This may interest you : FOX13 INVESTIGATOR: How the student’s report card can save you money on car insurance.
Teslas have to be repaired by certified Tesla locations, so it takes much longer to make the repairs because they have a backup. When it comes to non-Tesla EVs, many dealerships require you to come to their facilities.
The average duration of a car rental when your car is repaired, Smith explains, is between 12 and 15 days. For Tesla drivers, it takes about 20-25 days on average. So it costs the insurance company an average of about $36 per day for a rental car.
So the cost of premiums has more to do with the repair bottleneck and the limited number of facilities to make the repairs than with the safety rating of the car.
Smith shared the best way for EV owners to get a reasonable premium and good coverage:
Look around, because so many insurance companies have a better EV book than others. For example, Progressive and Allstate are good at using technology to understand data – they put something in your car to better understand your driving, and that lowers the premium. [Editor’s note: Smith did not work for Progressive or Allstate.]
Choose a company that wants to embrace and better understand electric vehicles.
If you’re shopping around, ask the insurance company, “Are you a partner of electric vehicle repair facilities?” If not, move on to the next company. In the long run it will be so much easier to fix if you have an accident.
Hindson also echoed this sentiment, advising drivers to look for insurance companies that use telematics, because auto insurance companies love data. And data will ultimately help them catch up.
[The insurance industry] can’t do well by excluding things. We can’t win by playing defensively. The problem will resolve itself over time.”
Electric driving has so many advantages. The world just needs to catch up.”
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Does Tesla need Antifreeze?
At temperatures below 4°C, use a windshield washer fluid with antifreeze. In cold weather, using windshield washer fluid without antifreeze may impair visibility through the windshield.
What fluids does Tesla need? To maximize performance and battery life, the cooling system uses a specific blend of G-48 Ethylene Glycol Coolant (HOAT). Contact Tesla for more specific coolant information.
Why does a Tesla need antifreeze?
The cooling system uses a specific type of G-48 ethylene glycol refrigerant. Tesla’s systems transfer this heat to a cooling cycle and use electrical resistance heating in cold weather. Glycol coolant is distributed throughout the pack to cool the cells.
Do electric cars need antifreeze?
A major advantage of electric cars is that they usually require fewer fluids to operate than gas-powered vehicles, although most electric cars do require antifreeze. However, this also depends on the type of electric car you purchase. For example, some electric vehicles also require transmission fluid.
Can you drive a Tesla with low coolant?
Even without coolant it is no problem to drive. The vehicle shuts off each engine individually if it gets too hot. Eventually it will shut down the whole car if it overheats.
Why does a Tesla need coolant?
Tesla’s thermal management (as well as GM’s) uses liquid glycol as a coolant. Both Gm’s and Tesla’s systems transfer this heat to a cooling cycle and use electrical resistance heating in cold weather. Glycol coolant is distributed throughout the pack to cool the cells.
Do Teslas take antifreeze?
Yes, the coolant system for the battery, inverter and motors is filled with the same coolant used in ICE vehicle radiators.
Where do you put antifreeze in a Tesla?
Do electric cars use antifreeze?
A major advantage of electric cars is that they usually require fewer fluids to operate than gas-powered vehicles, although most electric cars do require antifreeze. However, this also depends on the type of electric car you purchase. For example, some electric vehicles also require transmission fluid.
Do Tesla cars use antifreeze?
Depending on the date of manufacture of your vehicle, the cooling system uses G-48 (blue) or HTF-LS (orange-red) coolant. Contact Tesla for more specific coolant information.
Do electric cars use antifreeze?
A major advantage of electric cars is that they usually require fewer fluids to operate than gas-powered vehicles, although most electric cars do require antifreeze. However, this also depends on the type of electric car you purchase. For example, some electric vehicles also require transmission fluid.
What do electric cars use for cooling?
Most electric vehicles use a cooling loop. This loop usually contains an ethylene glycol coolant. The coolant is circulated through the batteries and part of the electronics using an electric pump. This loop contains a radiator to transfer heat to the outside air.
What fluids are in an electric car?
The simple answer is no: electric cars do not use engine oil. That said, electric vehicles (EVs) still use transmission (direct-drive unit), coolant, brake fluid, and windshield washer fluid, all of which require regular checks and replacements.
Do electric cars need oil or antifreeze?
Electric cars don’t need oil to run well. That said, they do require transmission fluid, coolant and brake fluid.
Are electric cars cheaper to insure?
Insurance for an electric car can be more expensive than insurance for a regular gas car. The higher price tag and more complex equipment of an electric car mean that it may cost more to repair or replace in the event of an accident. That could mean higher rates for policyholders who have comprehensive and collision coverage.
What are the disadvantages of electric cars? What are the disadvantages of electric cars?
- Their batteries require rare metals. …
- Making electric cars causes more emissions. …
- They are only as green as their energy sources. …
- Electric cars can be expensive to buy. …
- You can’t drive that far with an electric car. …
- There are not enough charging points.
Is it financially worth buying an electric car?
All things considered, an electric car can make financial sense over time, especially when gasoline prices are high. And if you’re looking for a way to reduce your personal carbon footprint, an electric car may be ideal, with a result that’s both financially and environmentally friendly.
Do electric cars need servicing?
An electric car needs maintenance just as often as any other car. The service includes: Tire wear & check tire pressure. Replace windshield wiper.
What is the disadvantage of electric cars? These disadvantages include finding charging stations, charging times, higher initial costs, limited driving range and battery replacement can be expensive.
Is it expensive to maintain an electric car?
The average cost to maintain an EV, according to AAA, without insurance is $949 per year. It’s about $330 less than a gas-powered vehicle. They do not require oil changes and other routine maintenance.
Is it cheaper to maintain an electric car?
No oil changes, no gaskets replaced, no valves clogged, electric cars do not have combustion engines, so those costs are eliminated. By comparison, internal combustion engine cars, especially as cars age, engine maintenance can be a huge monetary expense.
Are repairs on electric cars expensive?
According to a recent study by CCC Intelligent Solutions Inc. repairing the average EV model based on actual insurance claims for small, non-luxury cars with front-end damage that was still drivable cost $4,041. That was about 27% more than the average for roughly comparable non-EV models.
Do electric cars require a lot of maintenance?
Fully electric vehicles typically require less maintenance than conventional vehicles because: The battery, motor and associated electronics require little or no regular maintenance. There are fewer fluids, such as engine oil, that require regular maintenance.
What is the most common problem with electric cars?
Charging speed and time The most common problem electric vehicle owners complain about is the time it takes to charge the vehicle. You probably spend more time charging your electric car than refueling your ICE car.
Do electric cars have a lot of problems?
Battery electric vehicles and plug-in hybrids have more problems than the average car, according to the annual JD Power U.S. Initial Quality Study (IQS) released Wednesday. The 2022 survey found EV owners cited 39% more problems with their new vehicles than owners of new combustion engine vehicles.
What is the biggest issues with an electric cars?
EV owners have experienced chronic problems with displays, exterior door lights, faulty temperature sensors, mismatched paint, seals and weatherstripping. Not only do these problems happen, but they happen more quickly than with conventional vehicles.
How often does an electric car need to be serviced?
EVs require vehicle system maintenance and tire changes as many as twice a year. These help maintain optimal battery performance and EV longevity. EVs that have been in use for more than 8 to 10 years and after the factory warranty has expired will also likely need a battery replacement at some point.
What kind of maintenance do electric cars need?
Maintenance for electric cars All fluids are checked, including brakes, power steering, transmission and coolant. You also have to check and sometimes replace the hoses, belts and seals, replace the wipers and even the battery every few years.
Do electric cars need to be serviced?
Fully electric vehicles typically require less maintenance than conventional vehicles because: The battery, motor and associated electronics require little or no regular maintenance. There are fewer fluids, such as engine oil, that require regular maintenance.
Are EV cheaper in the long run?
The 2021 study compared vehicles of different sizes and found that while total cost of ownership over 15 years is similar between electric vehicles and their gas-powered counterparts, electric vehicles are slightly cheaper to run per mile.
Are Teslas cheaper in the long run? On the other hand, the Tesla Model S has an electric charging price of $0.037 per mile (which is about the price you would pay to charge your Tesla at home), which puts you at $555 to cover the same 24,000 mile distance. lay. So yes, the fuel savings with a Tesla are significant.
Are electric cars actually cheaper in the long run?
It costs $1,700 less per year to drive the 120 MPG Kona 15,000 miles on electricity than the 30 MPG gas version. In this way you earn back your costs in eight years. Electric cars are also cheaper to maintain, according to AAA, costing $330 less per year. So you can break even in 6.7 years.
Will electric cars ever go 1000 miles?
One of them is Aptera Motors of San Diego, whose solar-electric car offers an astonishing range of 1,000 miles per charge (1,600 kilometers). Yes, that’s right, 1,000 miles!
Will electric cars be cheaper to maintain?
No oil changes, no gaskets replaced, no valves clogged, electric cars do not have combustion engines, so those costs are eliminated. By comparison, internal combustion engine cars, especially as cars age, engine maintenance can be a huge monetary expense.
Does it cost more to run an electric car than a gas car?
The 2023 Nissan Leaf. An Energy Department analysis released this week also found that battery-powered EVs generally spend less than $1,000 a year on electricity for their vehicles, versus average fuel prices between $2,000 and $7,000 for gas vehicles.
Does EV range decrease over time?
EV batteries can begin to lose range over time. New Jersey-based Tom Moloughney, editor-in-chief at InsideEVs.com, said he sees an average range drop of 2% to 3% per year in the EVs he owned, which travel 24,000 to 20,000 miles per year.
Will electric cars get cheaper by 2030?
Air Board officials predict that the cost of an electric car will equal the price of a gas-powered car as early as 2030 as inventories build to meet the mandate. Despite the higher initial cost, the Air Board’s analysis shows that drivers will ultimately save much more on maintenance and operating costs.
Will the price of electric cars decrease?
As demand for electric cars increases, industry experts say prices will get cheaper. According to Treehugger.com, experts expect electric and gas cars to cost about the same by 2025.
How Far Will electric cars go in 2030?
Electric vehicles – predicted average range 2020-2030 The average electric car on roads around the world is expected to have a range of approximately 440 kilometers by 2030.
Will electric cars take over by 2030?
Just over half of passenger cars sold in the U.S. will be electric by 2030, according to a BloombergNEF report, thanks in part to consumer incentives included in the $374 billion in new climate spending set by President Joe Biden.