Fleet managers should be aware that investing in an Electric Vehicle Fleet brings its own challenges
Many fleet managers and CEOs want an electric fleet. A carpark of premium electric cars indicates success and sustainability. However, electric vehicles are entirely different machines to a regular ICE fleet, and therefore possess different risks.
As a leading international insurance broker, we talk to many fleet managers who want to know which vehicles are the best for their business’s fleet. Many CEO’s have their heart set on an electric fleet – and while we appreciate the benefits, fleet managers need to understand the challenges associated with insuring and maintaining an all-electric fleet.
Why are insurance premiums higher for electric vehicles?
Replacing Parts
The cost of replacing parts, such as sensors, lights, switches, is far greater than that of older ICE models (internal combustion engine). This is because of the availability of parts.
Registered Repair Shops
Another oversight is that many repair shops are not equipped to handle EVs. The reduced number of repairers means wait times are longer and labour costs are higher.
Long Wait Times
The combination of parts coming from abroad, slower supply lines, and less repairers mean electric vehicles are likely to be sat in garage forecourts far longer than regular cars.
Complex Repairs
EVs depend upon heavily sophisticated electronics and software. Repairs are difficult and lengthy, and many fixes cannot be done roadside by breakdown response vehicles.
Replacement vehicle availability
The custom when supplying a replacement, is that the vehicle must be of equal value to the one being repaired. However, electric vehicles typically cost more than most ICE vehicles, and therefore sourcing a replacement vehicle can prove more difficult for insurers.
Tire Costs
EVs are far heavier than ICE vehicles, giving the misconception that their tires wear faster. However manufacturers make tires specific to EVs with increased strength and resilience. Therefore tires last the usual 20,000 miles, however they are more expensive to buy and to fit. REMEMBER: Always check your fleet’s tires and tread depth every 2 weeks.
Greater Torque
Regular drivers of ICE vehicles will be surprised at the acceleration speed of EVs. Because the electric motors directly spins the wheels, the feeling can be unnatural, and overaccelerating is a real risk, causing a surprising number of incidents
More Stringent Manufacturers
EV manufacturers are typically more stringent that popular ICE makers. Safety requirements need to be higher because of the extreme dangers associated with battery fires and electric shocks. They will mandate part replacements, and buying the parts from makers of premium EV models can be very expensive.
Why Fleet Managers should use an Insurance Manager
Insurers consider all these factors when setting their premiums. Using a broker is the best way to ensure good insurance premiums – but using a dedicated, award-winning, nationally recognised broker, such as Romero Insurance, is the best way to ensure the best premiums and the best service.
Fleet managers who utilise Romero Insurance we gain access to an award-winning inhouse claims team who are available 24/7 to handle any accidents or repairs. Our specialists have 20 year experience managing and servicing commercial businesses and corporation with their fleet needs – and know the emerging risks to look out for.
Arrange a non-invasive confidential review with us today to see how much better we can service your business’s needs.
Arrange a confidential review with Romero Insurance
