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1 min read

How can insurance brokers help facilitate their customers’ shift to electric vehicles?

Written by Steve Molloy

As the world moves towards a greener and more sustainable future, the adoption of electric vehicles (EVs) has gained significant momentum.

The UK, too, is witnessing an increasing number of EVs on its roads as people recognise the environmental and cost-saving benefits they can offer.

However, transitioning to an EV can be a daunting process for customers due to various factors such as range anxiety, charging infrastructure, and uncertainties about insurance coverage. This is where insurance brokers, in collaboration with their claims management partner, play a crucial role in guiding and supporting their customers through this transition.

While some brokers will be ahead of the game, I’ve created some simple tips so brokers can get started on making EV solutions a USP. And later, I’ll suggest how they can harness data from Motor Assist to refine their electric vehicle insurance solutions.

  1. Knowledge and Expertise: Insurance brokers possess a deep understanding of the insurance landscape and can help customers navigate the complexities of electric vehicle insurance. They can offer tailored advice and recommend appropriate coverage options to suit the specific needs of EV owners.
  2. Specialised EV Insurance Solutions: Electric vehicles have unique characteristics that set them apart from traditional internal combustion engine (ICE) vehicles. As a result, they can require specialised insurance coverage. Insurance brokers can develop products specifically designed for EVs, covering aspects like battery damage and charging cable protection in the event of an EV-specific incident.
  3. Charging Infrastructure Support: One of the primary concerns for potential EV owners is the availability of charging infrastructure. Brokers can assist customers by providing information about EV charging points and locations. Moreover, they can guide customers towards insurance policies that offer coverage for potential breakdowns or accidents related to charging infrastructure.
  4. Range Anxiety Mitigation: Range anxiety is a common barrier to EV adoption. Insurance brokers can educate customers about advancements in battery technology, improved ranges, and the growing network of charging stations in the UK. By addressing range anxiety concerns, brokers can encourage more customers to consider the switch to electric vehicles.
  5. Incentives and Savings: Insurance brokers can enlighten their customers about various incentives and savings associated with EV ownership. This could include lower insurance premiums for EVs, reduced road tax, and potential government subsidies available to EV owners. By highlighting these benefits, brokers make the transition to electric vehicles a more appealing option.
  6. EV-ready repair network: The bodyshop sector has been slow to invest in training and the necessary technology because up until now EV repair volumes are low. Motor Assist has developed relationships to ensure it has full nationwide repair coverage for all EVs, including Tesla models.
  7. Future-Proofing Coverage: The landscape of EV technology and regulations is continuously evolving. Insurance brokers can monitor these changes and ensure that their customers' coverage remains up-to-date and compliant. By offering future-proof insurance solutions, brokers help provide a seamless ownership experience for EV customers.

Telematics and driver data can help brokers to support their customers as they transition to EVs

The surge in EV adoption presents unique challenges and opportunities for insurance brokers. Embracing innovative technologies, such as telematics, and leveraging driver behaviour data from cutting-edge claims management suppliers like Motor Assist can significantly enhance their EV insurance services.

Furthermore, brokers can encourage underwriters to develop insurance for EV drivers. They can use the data and intel they can access to present a low-risk business case to underwriters, enabling the broker to create bespoke EV offerings.

Telematics devices allow providers to collect real-time data on drivers’ habits, patterns, and vehicle performance. For EV insurance, this data becomes invaluable in understanding the unique characteristics of electric cars, driving behaviour, and the risk profile associated with certain vehicles. By analysing telematics data, brokers can tailor policies to individual drivers, offering more accurate premiums based on their driving habits and EV usage.

With many years of experience and a huge fleet of ICE and electric vehicles, Motor Assist can play a crucial role by providing historical data related to EV accidents and repairs. This information enables insurance brokers to refine their risk assessment models, leading to more competitive and comprehensive EV insurance products. By staying updated with the latest industry trends through claims data, brokers can adapt their offerings to address emerging risks specific to EVs.

Furthermore, harnessing customer data from insurance brokers can facilitate a smooth transition for drivers shifting to EVs. By understanding their clients' driving behaviours, commute patterns, and charging preferences, brokers can offer personalised guidance and incentives to encourage the adoption of EVs. This may include special discounts for careful drivers, tailored coverage options for EV owners, and even partnerships with charging networks to ease range anxiety concerns.

Insurance brokers have a vital role to play in facilitating the transition to electric vehicles for their customers. Through their knowledge, specialised insurance products, and access to data through their claims partners, brokers can instil confidence in potential EV owners, making the switch to EVs smoother and more rewarding.

By partnering with Motor Assist and harnessing its end-to-end incident claims management solution, we can help you and your customers transition to electric vehicles with solutions to accommodates EVs.

Motor Assist's end-to-end and modular packages offer agility, visibility and performance. That's why we're offering the opportunity to benchmark your current incident claims management costs against our offering.

Book a benchmarking call today