As a growing number of drivers opt for greener transport, the motor vehicle insurance market is evolving too.

Amid a growing Environmental & Social Governance focus last year, a record number of Electric Vehicles (EVs) were sold across Australia, according to the Federal Chamber of Automotive Industries.

The rise in EVs brings new challenges for insurers and underwriting agencies, says Tom Hall, Senior Technical Underwriter at Dawes.

“It’s not difficult to see why EVs have taken off over the past few years,” Tom says.

“Besides the green credentials EVs provide, they have lower running costs, reduced emissions, improved fuel security, and a balanced energy supply.

However, he says there is still variance across insurance for these vehicles.

“When insurers calculate premiums for popular and conventional vehicles, they draw on years of statistics on what might go wrong and the cost of repairs. But the relatively short history with EVs means there’s still uncertainty in the market.”

Regardless, it’s essential to move with the changing landscape to better protect EV owners, Tom says.

The benefits of specialised motor insurance for EVs

With 37 years in specialised motor vehicle insurance, Dawes was one of the first underwriting agencies to arrange insurance for EVs in Australia, starting with the Tesla in the early 2010s.

This year, Dawes released enhanced insurance products for specialised vehicles and motorcycles, with more provisions for EVs.

New features include a $1,000 sub-limit for alternative transport if a client can’t charge their vehicle due to a power cut.

“It also includes up to $2,500 towards the repair of a charging point on a client’s residence if the insured’s electric vehicle damaged it,” Tom says. “These changes reflect Dawes’ commitment to modernisation and adapting to a fast-changing market.”

While insurance for EVs is slowly becoming more accessible, there are still concerns, particularly the risk of battery fire.

“Some insurers cover thermal run-away battery fire, and others don’t, which is a good example of why it’s so important for EV owners to receive specialised advice and understand the fine print of their insurance cover,” Tom says.

It’s also important for brokers and insurers to increase risk mitigation advice in this space, such as correct charging practices.

“EVs are a great option for people and companies looking to reduce their carbon footprint, and it’s important that they can access expert advice and understand the need for specialised cover.”

About Dawes

Dawes Underwriting Australia has specialised in arranging prestige motor insurance for over 37 years and is one of 30 agencies within the Steadfast Underwriting Agencies network.

From exotic high-end cars and classic cars to specialist vehicles and motorcycles – Dawes understands that cars and bikes can be as unique as the people who drive them.

If you have questions, please get in touch with the team here or call us on 1300 188 299 to learn more about our first-class insurance for first-class vehicles.

Dawes Underwriting Australia Pty Ltd t/as Dawes Motor Insurance (ABN 18 050 289 506, AR No. 342982) (‘Dawes’) is an Authorised Representative of SGUAS Pty Limited (ABN 15 096 726 895, AFSL 234437) (‘SGUAS’) and acts for the insurer, Allianz Australia Insurance Limited (ABN 15 000 122 850, AFSL 234708) (‘Allianz’). Consider the relevant Product Disclosure Statement and Target Market Determination available by contacting Dawes on 1300 188 288 or visiting www.dawes.com.au, before deciding if it is right for you.