As more data rolls in from the insurance industry, an unfortunate trend has persisted for electric vehicles: They cost more to insure.
And there are enough of them in the vehicle fleet now to underscore that it’s no longer a matter of insurance companies covering themselves for the unknowns of a new vehicle type.
Based on calendar-year results examined by the insurance analytics team at LexisNexis Risk Solutions, EVs now have a 17% higher claim frequency and 34% higher claim severity versus what the firm considers “traditional segments.”
“Consequently, the number of paid claims, as well as the total claims payment amount for EVs has risen faster than the number of EVs as a percentage of the total PPA market over the year,” underscored LexisNexis in its report, out Thursday. While the EV fleet in 2023 was 1.5% of the insured vehicle fleet, it represented 1.7% of all…
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