EV owners beware! With certain model Hyundai & Kia vehicles suddenly uninsured, will the car insurance cancellations continue with electric vehicles? For reasons why that could happen, keep reading on…
Fire Risks
Recent developments in the automotive insurance industry have raised questions about the future of electric vehicle (EV) insurance coverage. With ‘;/]the rise in popularity of electric vehicles, insurance companies may consider the potential risks associated with these vehicles, especially in densely populated urban areas.
Imagine a neighborhood where homes are in close proximity to one another, and many residents own EVs. Some EV owners may have a 220V power outlet in their garage to fast-charge their vehicle, adding to the convenience of owning an EV.
Such conveniences pose a significant risk to the community, particularly in the case of a fire. EVs garaged in or parked in close proximity to homes increase the likelihood of a massive fire. In such a scenario, multiple home fires, injuries, and deaths would not be unlikely. Insurance companies have already began large scale cancellations for other vehicle related matters.
Recent Dropped Coverage for Kia and Hyundai Vehicles
State Farm and Progressive have discontinued coverage for Kia and Hyundai vehicles manufactured between 2011 and 2019. Why? These vehicles lack anti-theft immobilizers, a technology that prevents unauthorized individuals from driving a vehicle.
Without this essential security feature, Kia and Hyundai vehicles are more susceptible to theft. This vulnerability was a significant concern for car these insurance companies, so they canceled policies on these vehicle owners. What other reasons would insurance companies cancel policies on EV owners?
Cost of and Right to Repair along with Limited Availability of Technicians
EV owners do not have the same “right to repair” laws afforded to combustion vehicle owners. This lack of access to repair information and proprietary parts makes it difficult and more costly for independent repair shops. This, in turn, can affect the cost of repairs that insurance companies; it’s also annoying for DIY EV owners. With the higher level of technical expertise required to repair electric vehicles, a technician shortage will further drive up the cost of repairs. These issues for insurance companies lend yet another reason insurance company may refuse to offer coverage.
High Voltage Batteries and Safety Hazards in Accidents
Then comes along the safety hazards associated with high voltage batteries in EVs, which ought to be a concern for insurance companies. In the event of a collision or accident, high voltage batteries could be damaged, leading to an electrical short circuit and possibly a fire. There is no industry for charging systems or battery technology across different electric vehicle manufacturers.
Which brings us to… It doesn’t take a collision or accident for a fire to occur. High voltage batteries in EVs can catch fire without a collision or accident. The high energy density of these batteries allow them to overheat, ignite, and catch fire. Add in battery manufacturing defects, improper charging, or exposure to high temperatures and the odds of fire are even greater.
Overcharging (improper) or an overheated battery (high temperatures) may short-circuits leading to thermal runaway. When runaway happens, a rapid uncontrolled release of energy within the battery ignites a fire that is nearly impossible to extinguish. This is why it’s important for EV owners to properly maintain their vehicles, including the battery and charging systems, to minimize the risk of fire.
Tesla is trying! To mitigate this risk, EV manufacturers, such as Tesla, have implemented strategies to encourage the use of their proprietary charging systems and their proprietary batteries. By doing so, Tesla ensures that their batteries are charged safely and effectively. This proprietary solution by Tesla reduces the risk of electrical issues and fires. With there still being no industry standards, insurance companies insurance could one day cancel policies on EV owners.
Informed Decisions for Electric Vehicle Owners
In conclusion, buyer beware! The insurance industry faces challenges with rise of EV popularity, and that is not without risk to you, the consumer. Safety hazards like fire risk, lack of right to repair laws, and limited technician availability will undoubtedly impact coverage, whether it’s available, and cost decisions post-collision. Car insurers ought to be cautious, and so should EV owners with insurers suddenly discontinuing coverage on certain Kia & Hyundai vehicles. While proprietary charging systems may make buying seem less risky, there is no standardization and regulation on the EV industry. Can you afford to go green?
If you want to avoid the risk of your future auto insurance policy being canceled, like what happened with some Kia & Hyundai owners, consider buying a vehicle that can be extinguished safely and effectively.
SOURCES:
Is my car still insured? What we know about State Farm, Progressive dropping some Hyundai, Kia cars
Repairing An Electric Vehicle Could Cost More Than Gasoline Cars: A New Kind Of Sticker Shock
How Much Should You Worry About EV Fires?
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