Why Are Insurance Premiums for New Energy Vehicles Increasing?
3 Answers
New energy vehicle insurance premiums are rising due to lack of pricing data, immature technology, high equipment costs, and the nature of new energy vehicles. Lack of pricing data: Insurance companies lack original pricing data for new energy vehicles. For operational efficiency considerations, initial pricing may be set higher. Immature technology: New energy vehicle technology is not yet mature, resulting in higher accident rates and claim ratios. Most auto insurance companies raise pricing due to cost considerations. High equipment costs: The high cost of supporting equipment for new energy vehicles increases claim costs to some extent. New energy vehicles: These refer to vehicles that use non-conventional vehicle fuels as power sources (or use conventional vehicle fuels with new onboard power devices), integrating advanced technologies in power control and driving systems to form vehicles with advanced technical principles, new technologies, and new structures. To support the development of the new energy vehicle industry, the government has also implemented subsidy policies to encourage consumers to purchase new energy vehicles.
After switching to a new energy vehicle, I noticed that the insurance premium increases every year. Upon consulting an insurance friend, I learned that the main reason lies in the excessively high repair costs. The battery and motor of electric vehicles are outrageously expensive—once there's an accident or malfunction, the repair costs start at tens of thousands, more than double that of traditional fuel-powered vehicles, driving up insurance companies' expenses. Additionally, new energy vehicles involve newer technologies with higher risks, such as batteries being prone to overheating and catching fire. Statistics show a 30% higher likelihood of claims, prompting actuaries to raise premiums to hedge against these risks. I recommend paying attention to driving habits and safety inspections, not rushing to renew insurance, and comparing quotes from multiple providers—you might find more affordable options. After all, the rise in premiums is also related to increased demand due to higher sales volumes, with supply chains struggling to keep up, pushing prices up.
The rising insurance premiums for new energy vehicles are a significant trend based on data analysis, with the core factor being strengthened risk assessment. Insurers' actuarial models indicate that electric vehicle repair costs far exceed those of fuel-powered cars, with battery replacements often costing tens of thousands, coupled with frequent fire incidents leading to high claim rates, resulting in soaring overall underwriting costs. In this industry, it's understood that premium pricing is based on expected losses. Due to the lack of historical data for new energy vehicles, insurance companies have to adopt conservative pricing. Additionally, the surge in market demand and rising costs in the supply chain, such as lithium ore prices affecting repair parts costs, further drive up premiums. Vehicle owners can mitigate this by enhancing preventive maintenance to reduce the likelihood of claims.
