EV Insurance Risks You May Not Know About

by | Jun 15, 2022 | Auto Insurance | 0 comments

EV Insurance Risks

BC is already a leader in electric vehicle (EV) sales in North America. But after experiencing the highest consumer gas prices in history, the number of EVs on the road is about to skyrocket. While beneficial for the environment and your pocketbook (once the initial investment has been made) there are insurance and liability risks that have come to light that EV drivers should be aware of. Let’s review.

Three Safety, Insurance, and Liability Risks Posed by Electric Vehicles that EV Drivers Probably Don’t Know About

EV Fires

If your EV is not working properly, you might park it in your garage until you have the time to take it into the shop. However, there may be a risk in leaving a malfunctioning EV at home and plugged in. Charging electrical systems can build up heat. When there is corresponding damage to safety components such as a fuse, the heat build-up can cause components to melt, ignite, combust, and/or outright explode.

If your EV has been acting up, don’t plug it in. If it’s already plugged in, disconnect the power supply immediately. Moreover, don’t drive it into the repair shop or EV dealership. Just last week in Vancouver BC, a driver had to kick out the window of his new Tesla after it suddenly lost power and caught on fire. The minute you discover a problem, have your electrical vehicle towed-in for immediate inspection and repair.

Range Anxiety

Have you noticed that you’re more stressed behind the wheel of an electric vehicle than you were when you drove a gas-powered car? You may be experiencing range anxiety. Range anxiety is a negative mental and emotional state experienced when you constantly worry about whether or not your EV battery charge is sufficient to take you over significant distances. Despite BC having more EV sales per capita than the rest of the continent, there are simply not enough charging stations to accommodate everyone. In addition, EV drivers report malfunctioning apps and charging stations which compounds the issue. When your mental state is compromised, you are distracted, which puts you and others on the road at risk. View these tips to reducing range anxiety.

Thieves Are Interested (and figuring it out)

Many EV owners have a false sense of security when it comes to the security of their vehicle. It’s true that EVs are harder to steal compared to gas-powered vehicles as they have built-in theft prevention measures. When they are stolen, they are often recovered quickly due to tracking and instant power-down functionality.

However, as with any valuable asset, criminals figure out workarounds. Seeing as modern EVs are web enabled, cyber-car-thieves can hack into the system to gain entry into the vehicle. Mitigate this risk as you would your smartphone or laptop – integrate multi-factor authentication (MFA). Most EVs now have a PIN feature to add a second layer of protection. When enabled, the user needs to enter a PIN to start the vehicle. For you it’s a very small 2-second inconvenience. For a potential thief, it’s a full-stop on their ambition. Enabling a PIN also protects your vehicle should your FOB or other app-connected device end up in the wrong hands. Further, EV manufacturers stay ahead of current “hacks” by updating software that includes security patches to address new vulnerabilities. That is why it’s very important to update your EV (and connected apps) software in real time.

Mitigate the potential financial fallout that may come from any of the above EV exclusive risks. Contact Park Insurance today to find out if your auto insurance covers these contingencies and more.

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