Will the price of electricity run out soon?

Olivier Mustacakis, co-founder of Assurland.com (Insurance Comparator), was unanimous when asked about the cost of insurance contracts for battery-powered vehicles. “Today, few cars are on the road, so electric car insurance is more expensive. Also, while large SUVs and Tesla have a fairly high loss rate, some are made of aluminum. More expensive to repair.. However, making an online quote tends to prove that Assurland’s manager is wrong. Compared to the same with a 100hp PureTech engine, the benefits of the Peugeot e-208 Active Pack differ by 24 euros per year. Mutual insurance company. Same as above for competing mutual.

Optical illusion

But there is, however. ” Since January 2021, the government has increased the mobility of electricity Suspended insurance contract special tax (TSCA) for 3 years, That is, until December 31, 2023. This rebate is not symbolic. 33% discount on civil liability, 18% discount on guaranteed damages. Example: For the Peugeot e-208 Active Pack, a comprehensive insurance premium of € 671.40 per year (€ 695.80 for the petrol version). However, ignoring tax refunds, the price of civil liability goes from € 238 to € 316.50 per year. Similarly, the warranty will increase from € 432.80 per year to € 510.70. This will eventually result in a premium of € 827.20 per year on the e-208, which is 18.8% more than the Thermal Peugeot 208. That’s it for entry-level vehicles.

Peugeot e-208
Peugeot e-208© Peugeot

Loss rate is still low

Doing the same exercise on the Tesla Model 3 takes the problem to a whole new dimension, even before selling prices start to rise again. This mutual site doesn’t want to hear about it: “Your request is a bit specific, do you want to be recalled by an adviser?” We always read.Conflicting mutuals agree to run the simulation Equipped with entry-level Tesla Model 3. The annual all-risk premium offered is 8.4% more expensive than the 184 hp BMW 320i Lounge. Nevertheless, its selling price and segment are similar. “Electric vehicles drive less, which can help offset lower billing and more expensive repair costs. However, the population buying this type of vehicle today does not necessarily represent all drivers. Not that. As the use of electric vehicles becomes more common, the loss rate increases mechanically and as repair costs increase … this affects the price. “Says Thierry Casagnerez, Head of Indemnity for the insurance company Generali Insurance.

Compare the actual autonomy of the best electric vehicles according to a standardized measurement cycle. Battery capacity, consumption, autonomy, we tell you everything!

Balancing performance

However, according to a 2019 Axa Switzerland survey, in addition to the price of mechanical intervention, and thus repairability, another factor appears to be affecting insurers. “In the luxury and SUV categories, the frequency of complaints for more powerful models is about 40% higher. According to experts, the acceleration of electric vehicles partially explains this phenomenon.” Is it displayed? Electric motors provide all the torque instantly, a fact unique to this type of technology. Providing high power is also a way to justify the high price of electric vehicles, even if this performance has little to do with the actual needs of the driver. But by doing so, the maker Tesla takes the lead, creating machines with performance that no one can understand.

The price of uncertainty

However, this is not the only list of reasons for high insurance premiums for electric vehicles. For Zurich, Switzerland, “These new vehicles, especially new manufacturers, have a higher risk of longer repair times due to restricted access to spare parts and problems. It happens that you don’t. ” Thereby, If so-called green vehicle insurance is more expensive, it is also because the insurer is guessing about possible problems. “We have decades of manufacturer and model data, so we know the average repair cost. This helps insurers cover insurance prices. This data. Without it, companies may need to include uncertainty in their premiums, because they don’t know what the cost of risk will be. Illinois University (USA).