Will Insurance Costs Derail the EV Revolution?

[Ptarmigan]

Will Insurance Costs Derail the EV Revolution?
https://realclearwire.com/articles/2023/08/02/will_insurance_costs_derail_the_ev_revolution_970320.html

Four hundred ninety-eight electric vehicles (EVs) and over 3,200 other vehicles, including 350 Mercedes Benzes, were bound for Egypt on the Fremantle Highway when one or more of the EVs caught fire, costing at least one seaman his life and injuring several others. Curiously, the Dutch coast guard had initially reported that only 25 of the vehicles were battery-electric models.

At last report, the Dutch coast guard admitted that it has been unable to put out the fire and that the ship has taken on water and is “listing” and on a trajectory toward a capsize. Should the ship sink, the total loss would also threaten the Frisian island of Ameland, part of a UNESCO World Heritage Site that is home to over 10,000 aquatic and terrestrial species and located near one of the world’s most important migratory-bird habitats.

On a global scale, of course, 3,000 vehicles are but a drop in the bucket, and in insurance terms, the loss of one 18,500–ton transport ship and one human life (all the wounded are expected to survive, despite broken bones, burns, and respiratory problems) is only so much. To compute a total cost, the ecological devastation would also have to be factored in, along with the cost of rescue, firefighting, and salvage operations.

But all in all, this was a freak accident, a one-off. This stuff never happens. Right?

Actually, it does. Just a year ago, the “Felicity Ace” sank as it was being towed from the site where 13 days earlier a fire had broken out on board. That ship, too, was transporting EVs and internal-combustion vehicles – including 15 Lamborghini Aventador LP 780-4 Ultimae supercars valued at half a million dollars apiece. Also lost were 1,117 Porches, 1,944 Audis, 561 Volkswagens, 189 Bentleys, and 70 other Lamborghinis.

Insuring EVs is very costly.

But massive fires are not the only insurance concern with EVs. The New York Times recently reported the sad story of a Rivian owner whose electric pickup truck was involved in what would normally be considered “a minor fender bender.” The owner’s insurance company gladly offered to pay about $1,600 for the repairs, but the certified repair shop produced a bill for $42,000 – about half the cost of the vehicle.

The Times reporter explained: “A key reason is that the accident damaged a sleek panel that extends from the truck’s rear to front roof pillars.” To repair and repaint the vehicle, mechanics had to remove the interior ceiling material (the headliner) and the front windshield. Indeed, the State of New York’s consumer guide for auto insurance lists many models as “difficult-to-insure vehicles” simply because they are electric.

But that’s still better than the news reported in March that insurance companies are having to write off EVs with just a few miles – leading to higher premiums – because of the many EVs for which there is no way to repair or assess even slightly damaged battery packs after accidents. EV battery packs are ending up in junkyards in multiple countries.

According to the Agent Support Network of America, the intense impact of a crash can be much more devastating to EVs, increasing the likelihood of a totaled versus repairable car. EVs, according to Consumer Reports, may not withstand an accident as well as traditional gasoline-powered vehicles. EV batteries are vulnerable to damage, and with any indication of a compromised battery, insurance companies will likely declare an EV crash a total loss.

An EV with a minor fender bender ended up costing $42,000, which is half the vehicle. The battery pack gets dumped as a result. Battery packs are expensive. It is basically a total loss.

[SVPete]

EVs' battery packs form a large percentage of an EV's floor. That probably does good things for stability in curves . However, the battery pack being almost everywhere in the car means being hit almost anywhere damages the battery pack. Other than the battery pack catching fire or not in the next year or three, there apparently is no way to easily determine whether the damage is trivial or significant. And being the entire floor of the car means replacing it entails removing the whole body of the car.

Ummmmm, “listing”? RealClearWire put quote marks around a term that has been standard usage for centuries? Oy! What will they do if the ship capsizes and someone writes/says that it turned turtle?

[Old n Grumpy]

I won’t be surprised if home owners insurance goes up if you park your ev in the garage.