China’s suffering EV insurers

In China it  costs about the same to insure an EV as it does to insure an ICE auto that is twice as expensive, reports the Nikkei.This reflects the fact that EV owners are about twice as likely to file a claim, according to  LexisNexis Risk Solutions.

China’s CIRI Auto Technology Institute, which researches  insurance-related car technology, said the reasons for high premiums on EVs are:

Their quicker acceleration;

They are more expensive to repair, particularly the batteries;

Some EVs can only be repaired by their manufacturers;

Their prolific use in the ride-hailing industry means they they get more use than ICE cars.

In short, EVs are more expensive, heavier, more powerful, more complicated, more expensive to fix and do more mileage than ICE vehicles which is why, last year, EVs accounted for 4.7% of  all  vehicles on China’s roads and 8% of all premiums.