{"id":1992969,"date":"2023-08-07T09:55:01","date_gmt":"2023-08-07T13:55:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/insurance-companies-realize-what-is-happening-with-evs-things-could-soon-get-expensive\/"},"modified":"2023-08-07T09:58:32","modified_gmt":"2023-08-07T13:58:32","slug":"insurance-companies-realize-what-is-happening-with-evs-things-could-soon-get-expensive","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/insurance-companies-realize-what-is-happening-with-evs-things-could-soon-get-expensive\/","title":{"rendered":"Insurance companies are aware of EVs&#8217; impact &#8211; costs may rise soon."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finsurance-companies-realize-what-is-happening-with-evs-things-could-soon-get-expensive%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1992969&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Insurance Companies Realize \u200cWhat Is \u2063Happening\u200b with EVs &#8211; Things Could Soon Get Expensive<\/h2>\n<p>It almost seems\u200c as if\u2064 as each\u2062 month passes, \u2063we get one more bit of evidence showing why \u200cbuying an electric vehicle is a bad\u2063 idea, and now we \u200bare seeing that even the insurance industry \u200bis starting to see the problems with the technology.<\/p>\n<p>Insurers are finding that many of the costs a car owner \u200bfaces \u200dare higher for EVs than for gas-powered \u200cvehicles. A June\u200b review of EV insurance costs published by <a href=\"https:\/\/www.marketwatch.com\/guides\/insurance-services\/future-of-car-insurance-rise-of-evs\/\" target=\"_blank\" rel=\"noopener\">Market Watch<\/a> notes \u200bright at the outset that insurance prices for EVs\u200b are higher\u200b than for gas cars.<\/p>\n<p>One\u2064 reason right \u2062off\u200c the\u200d top is the fact that new EVs are generally <a href=\"https:\/\/www.westernjournal.com\/new-study-electric-vehicles-cost-charge-filling-car-gas\/\" target=\"_blank\" rel=\"noopener\">more expensive<\/a> than new gas \u200ccars, and, naturally, the higher the price tag on\u2063 something, \u200bthe higher\u200b an insurer is going to charge to cover the \u200bitem. Market Watch noted that <\/p>\n<blockquote><p><strong>\u201cthe average price of a new EV\u200d reached $58,940. This \u200cis more\u200b than $10,000 higher than the industry average cost of a new vehicle at that same time, \u200bwhich was $48,008.\u201d<\/strong><\/p><\/blockquote>\n<p>Market Watch added\u200b that coverage\u2063 for EVs are \u201canywhere from 10\u2063 percent to 135 percent\u201d higher than the national \u2064average depending on which \u2062EV you want to insure.<\/p>\n<p>So, right off, before anything else is\u200b even considered, the higher price tag on a new EV starts\u200b car owners out with higher insurance costs. But there are many more \u2064reasons that EV insurance costs are\u2063 worse for EV owners, including <a href=\"https:\/\/www.westernjournal.com\/data-shows-incredible-way-electric-vehicles-create-double-pothole-damage-gas-cars\/\" target=\"_blank\" rel=\"noopener\">repair<\/a> costs.<\/p>\n<p>\u201cHigh repair costs\u200d play a \u2063significant role\u2062 in determining EV insurance premiums as well,\u201d Market Watch reported. \u201cWhile\u200b there are fewer components at risk of breaking\u200b down in an EV, the parts that do require repair or replacement \u200care \u200cmuch\u200c more expensive. This\u200d is especially true if\u200d an EV\u2019s\u200b battery pack is damaged. ConsumerAffairs found that the average cost to\u200d replace\u2062 an\u200c EV battery ranges from \u2063about $4,500 to\u200c nearly $18,000.\u201d<\/p>\n<p>There are \u200calso the <a href=\"https:\/\/www.westernjournal.com\/lefts-electric-vehicle-hopes-dreams-run-wall-evs-piling-lots-no-buyers\/\" target=\"_blank\" rel=\"noopener\">problems<\/a> EV owners face \u200bin even getting \u200dthose repairs made.<\/p>\n<p>\u201cEV\u200d owners also face a shortage of qualified repair shops \u2063and technicians,\u201d Market Watch\u2064 reported. \u200c\u201cThe specialized training required to \u200brepair electric vehicles means fewer available options and higher\u2063 charges for customers when repair needs arise. \u2063All of these factors drive \u200bup insurance costs\u2062 for EV drivers.\u201d<\/p>\n<p>In addition, Market Watch noted that repair costs for EVs are double or more than for\u2063 gas-powered\u200d or hybrid vehicles.<\/p>\n<p>While\u200d Market Watch\u2062 concluded its report on an optimistic note, claiming that \u201caverage premiums will\u200c likely level out as the \u2064market adapts to the rising number of EVs on the road,\u201d that\u2019s a risk, and an expense, that many potential EV buyers \u200caren\u2019t willing to take.<\/p>\n<p>The Market Watch report \u200dquotes a licensed insurance agent saying some \u201cinsurance companies actually offer discounts or incentives for EV owners because they\u2019re\u2063 more eco-friendly and are involved in fewer fire-related accidents,\u201d but when \u200cEV batteries do catch \u200dfire, they can be <a href=\"https:\/\/www.westernjournal.com\/tesla-catches-fire-takes-25000-gallons-water-42-minutes-firefighters-extinguish\/\" target=\"_blank\" rel=\"noopener\">notoriously difficult to extinguish<\/a>.<\/p>\n<p><a href=\"https:\/\/www.consumerreports.org\/money\/car-insurance\/electric-vehicles-cost-more-to-insure-than-gasoline-powered-a6372607024\/\" target=\"_blank\" rel=\"noopener\">Consumer Reports<\/a> \u200dalso found that EVs are more\u200b costly to ensure than \u200cgas-powered cars \u2062to insure.<\/p>\n<p>In an April piece, Consumer Reports also <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/insurance-companies-realize-what-is-happening-with-evs-things-could-soon-get-expensive\/\" title=\"Insurance companies are aware of EVs' impact - costs may rise soon.\">cited higher showroom price tags<\/a>, higher repair costs, and troublesome \u2064consequences from \u2063accidents.<\/p>\n<p>These costs may finally be \u200dgetting to\u2062 consumers. Even Ford \u2062was\u2062 forced\u200d to <a href=\"https:\/\/www.westernjournal.com\/ford-pushes-back-electric-vehicle-target-admits-transition-will-slower-industry-expected\/\" target=\"_blank\" rel=\"noopener\">push back<\/a> its expectations as Americans have proven \u200bslower to adopt EVs than the industry expected.<\/p>\n<p>The New York Department of Financial Services is also warning insurance consumers\u2063 that EVs may present some challenges that they may not be quite\u200d ready \u2064for. The state agency includes on its listings of <a href=\"https:\/\/www.dfs.ny.gov\/consumers\/auto_insurance\/difficult-to-insure_vehicles\" target=\"_blank\" rel=\"noopener\">\u201cDifficult-To-Insure Vehicles\u201d<\/a> EVs from manufacturers such as Rivian and Tesla.<\/p>\n<p>Speaking\u200d of the Rivian,\u2064 one owner found just how problematic accidents can be when in February his truck was rear-ended and by May <a href=\"https:\/\/www.westernjournal.com\/ev-suffers-minor-fender-bender-owner-stunned-repair-bill-skyrockets-42000-mechanics-start-work\/\" target=\"_blank\" rel=\"noopener\">he was told<\/a> that the cost\u2062 to \u200brepair\u2064 the vehicle wild be an\u2064 eye-popping $42,000, or about half what the truck cost \u200bin the first place.<\/p>\n<p>Others are noting that insurance companies are finding \u2064particular drawbacks to\u200c electric vehicles, as well.<\/p>\n<p>Reuters \u200creported in March that insurance \u200dcompanies are finding coverage costs\u200c to be soaring after even small car accidents\u2064 because even minor \u200ddamage to \u200dan EV\u2019s battery pack costs \u2062so much \u2063to replace that they have no\u200c choice\u2063 but to call the\u200c whole thing a loss.<\/p>\n<p>\u201cFor many electric vehicles, there is no way to repair \u2063or assess even <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inability-to-repair-damaged-electric-vehicle-batteries-presents-sustainability-problems\/\" title=\"Inability to repair damaged electric vehicle batteries presents sustainability problems\">slightly damaged battery packs<\/a> after accidents, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pro-abortion-states-seek-to-become-safe-havens-for-women-seeking-abortions\/\" title=\"Pro-Abortion States Seek To Become \u2018Safe Havens\u2019 For Women Seeking Abortions\">forcing insurance companies<\/a> to write off cars\u200b with few miles\u2063 \u2014 leading \u200bto higher premiums and undercutting gains from going \u200delectric,\u201d the\u200c <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/scratched-ev-battery-your-insurer-may-have-junk-whole-car-2023-03-20\/\" target=\"_blank\" rel=\"noopener\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-says-vast-majority-of-law-enforcement-are-decent-honorable-people\/\" title=\"Biden Says \u2018Vast Majority\u2019 Of Law Enforcement Are \u2018Decent, Honorable People\u2019\">wire service reported<\/a><\/a>.<\/p>\n<p>\u201cWe\u2019re buying \u2064electric \u200bcars\u200c for sustainability reasons,\u201d \u2062Matthew\u200d Avery, research director at automotive risk \u200cintelligence \u2063company Thatcham Research, told Reuters.\u2062 \u201cBut an EV isn\u2019t very \u2062sustainable if \u200cyou\u2019ve got to throw the battery away \u2062after a minor collision.\u201d<\/p>\n<p>What is clear here is that insurance companies are just beginning to\u200c see the major drawbacks in covering EVs, so the future of\u2063 EV coverage is \u2064still evolving. But. so far,\u200c that evolution is on an <a href=\"https:\/\/www.westernjournal.com\/insurance-companies-raise-rates-electric-vehicles-amid-troubling-pattern-totaled-cars\/\" target=\"_blank\" rel=\"noopener\">upward trend in\u200d costs<\/a> for EV drivers. And \u2062these costs are hitting\u2064 all car drivers thanks to the growth of EVs on the road.<\/p>\n<p>At some point, that price \u2064might be too high.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/insurance-companies-realize-happening-evs-things-soon-get-expensive\/\">Insurance \u200dCompanies Realize What \u2062Is Happening \u200dwith EVs \u2063- Things Could Soon Get Expensive<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The \u2063Western \u2063Journal<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Each month, more evidence emerges against buying electric vehicles. Now, even the insurance industry acknowledges the technology&#8217;s drawbacks. Insurers are discovering numerous costly issues associated with these cars.<\/p>\n","protected":false},"author":180,"featured_media":1992970,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-1992969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1992969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/180"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1992969"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1992969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1992970"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1992969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1992969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1992969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}