PRICING OF INSURANCE FOR ELECTRIC VEHICLES

Electric vehicles are increasingly dominating the global market, with this seeking to reduce carbon emissions. Electric vehicles accounted for 14% of the total number of cars as at the end of 2022, with the number gradually increasing, making it necessary for insurance companies to assess the risks associated with these vehicles and provide insurance coverage to protect the general public and compensate for losses caused during accidents. This article looks into various factors that insurance companies can put into consideration for them to offer insurance cover for electric vehicles.

Specific Risks Associated with Electric Vehicles

• Battery fire as a result of overheating.
• Increased risk of collision due to the silent nature of electric vehicles.
• Risks of autonomous driving in which sometimes self-driving technology doesn’t correctly identify roadway obstacles.
• Electric vehicles might not run efficiently when the weather is cold and the sensors may not work well.
• The risk of electrocution.

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