Electric vehicles in the sights of insurance

Luxury electric vehicles and electric SUVs cause 40% more claims than their combustion engine counterparts, says the Swiss arm of the French insurer AXA. These Swiss data, which primarily highlight trends, also show that small and micro electric cars cause 10% fewer accidents than similar petrol vehicles. Nevertheless, the accident rates for electric cars are, in general, the same as for traditional cars.

Accidents specific to electric vehicles

Although electric cars today represent only a tiny fraction of vehicles in circulation – 1% of the fleet in Switzerland –
their exponential growth

    ask insurers. The crash tests carried out in August 2019 by AXA showed that while these new cars are generally as safe as those with combustion engines, they have specificities at the origin of certain accidents.

"The maximum acceleration is directly available, while for combustion engines, even very powerful, it takes a moment to reach it"says Bettina Zahnd, Accident Research and Prevention Manager at AXA. A driving style that surprises many new converts and increases the number of accidents.

In addition, the use of the driver assistance system, which is common among drivers of electric vehicles, leads to overconfidence in the system and a lack of response in risky situations. Finally, the batteries of electric vehicles are extremely flammable. They can catch fire up to 48 hours after a collision, causing more damage, including the toxic emissions that emanate.
These risks represent real challenges for insurers.

Attractive insurance offers

AXA intends to continue its research

   . "We will take action [regarding insurance offers, Ed] as soon as we are sure that the trends are significant or as soon as we see that the costs of accidents involving electric vehicles are significantly more expensive than others"says Bettina Zahnd.

But this is not yet the case. Insurers even today offer cheaper offers to ensure electric vehicles with a lower range, so shorter journeys and reduced driving speed. In France, AXA is offering a 30% discount on electric vehicles.

The European Union has already reacted to other problems caused by these new vehicles, particularly with regard to their silence, which is responsible for many accidents. Studies in the United States have shown that silent electric vehicles are more likely to cause accidents with pedestrians or cyclists. This is why, since 1 July 2019 in Europe, electric cars must now be equipped with a sound signal to alert pedestrians.