Original text here from Patrice Bernard (LinkedIn)
For the vast majority of insurance companies, coverage for electric vehicles (EVs) is nearly identical to that of any other type of car. However, EVs have distinctive features that warrant a more tailored approach, as illustrated by Singapore’s Income Insurance in its new offering.
Their advertising campaign highlights a key difference: the battery. From an insurance perspective, the battery is both an extremely expensive and somewhat fragile component. It is particularly sensitive to damage, as it is often replaced outright at the slightest indication of impact or deformation—a reality until manufacturers improve repairability.
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As a response, eDrivo, Income’s EV insurance product, explicitly guarantees unlimited replacement of the battery in the event of a covered incident. While this provision is standard in comprehensive policies, its prominent inclusion provides peace of mind for EV owners. On the flip side, recognizing the high cost of such coverage, eDrivo offers a voluntary deductible of 3,000 Singapore dollars (roughly 2,000 euros) per incident, which reduces the premium by 5%.
In a different domain, the policy also includes 24/7 emergency charging assistance in case of battery depletion. This feature aims to alleviate driver anxiety, particularly among those new to EVs, and potentially encourage broader adoption. However, the benefit is limited to one incident per policy period, which may be less appealing if the coverage period is annual.
Given that EVs are frequently equipped with connected systems, eDrivo extends its coverage to include protection against hacking risks. This provision covers losses and damages resulting from exploitation of software vulnerabilities that lead to unauthorized access to the vehicle. However, as with any such coverage, proving the origin of the incident could become a source of dispute.
In summary, Income’s offering represents a first step toward an EV-specific insurance product from a generalist provider. However, it doesn’t yet reach the sophistication of specialized solutions, such as those developed by Tesla, which deeply integrates insurance into its ecosystem.
As the EV market continues to expand rapidly, insurers will likely need to delve further into the unique factors that differentiate EVs to create truly competitive and comprehensive offerings.
