Obtaining the “Unreachable Goal” EV Companies Have Set Forth

 

The Biden administration has proposed a lofty goal of 50% of automotive sales being electric vehicles by 2030. Considering the current adoption rates for electric vehicles in the US compared to Europe, or the current leader, China, this is going to take a massive realignment for the entire industry.

An important piece of this infrastructure support puzzle is getting the auto insurance industry prepared and on-board with a scaled EV shift. Because right now, it’s not doing EV adoption rates any favors; research from ValuePenguin found insurance premiums are usually higher than traditional gasoline-powered cars, meaning EVs don’t actually become more affordable for drivers in the long run until 8 years into ownership, on average.

While President Biden’s goal may seem unreachable, the willingness of vehicle manufacturers to partner with the government to reach that goal forces us to consider the possibility. While the current EV market is small, it’s not uncharted territory. The Biden administration would do well to study the top cities for owning an EV and employ some of those cities’ strategies.

Insurance companies will need to make sure their analytics fairly represent the risk that electric cars present, and they should explore partnerships with repair companies, dealers, and parts manufacturers, and even the government to help them lower the costs of repairs, thus lowering their risk and the customer’s rates.

Melanie Musson is a published insurance expert who specializes in EVs at 4AutoInsuranceQuote.com.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

 

Follow us on social media for the latest updates in B2B!

Latest

Driving Automation: Automating Workflows in the Parcel Post and Distribution Fulfillment Industries
January 21, 2022
  Think back to ten years ago when same-day delivery was a rarity; today, nobody bats an eye at its prevalence. Dan VanderAkker, Vice President of Kasa, joined Host Daniel Litwin to explain how workflow Read more
Using Data to Optimize Climate Control in Food Processing Plants
January 20, 2022
  John O’Haver, business development specialist, and Kevin Lockard, national operations manager, both with Polygon US, joined Tyler Kern on Ideal Connections to discuss flat roof drying — a potential Read more
ConCensis: Six New Year’s Resolutions for 2022
January 20, 2022
  Every new year brings with it New Year’s resolutions. And these resolutions don’t have to be personal goals, as Censis Clinical Educator Jill Sweeney explained to ConCensis’ Tyler Kern. Resolutions can Read more