As part of the ‘Road to Zero’ carbon emissions strategy, the UK government has banned the sale of all new petrol, diesel and hybrid vehicles from 2030, pledging that at least half of all new car sales, and up to 40% of new van sales, will be hybrid or electric.

According to recent findings from the Society of Motor Manufacturers and Traders (SMMT), in 2020 electric vehicles had a 27.2% market share, with petrol making up the bulk of the market with 56.4%.  In 2021 however, electric vehicle sales increased by over 71% on average, whilst diesel took the biggest hit as sales reduced by almost 50%.

However, vehicle electrification means a great deal more than simply choosing a make and model. Operations, aftercare and claims handling processes needs to be carefully thought out, but it’s also a case of understanding the status of ‘EV support’ in the market too. 

In other words, as we look to an electric future, what happens when something goes wrong.

The different types of vehicle explained: EV, BEV, PHEV, HEV and MHEV

These complicated acronyms stand for any vehicle with an electric motor, be that wholly electric or just partly. To break them down, these mean:

EV (electric vehicles) or BEV (battery electric vehicles) have electric motors charged with a plug.

PHEV (plug in hybrid electric vehicles) have electric motors charged with a plug but also have a typically petrol engine.

HEV (hybrid electric vehicles) have electric motors charged by braking and a petrol or diesel engine as well.

MHEV (mild hybrid electric vehicles) have a much smaller 48v electric motor, charged by braking which supports the internal combustion engine during start up and take-off.

More acronyms are likely to come soon.

Claims against stolen electric vehicles

As of 2021, recorded thefts of electric vehicles were still relatively low, but this is likely to rise in line with the increase in EV sales.

Most electric vehicles on the road still rely on an internal combustion engine to some degree, with MHEVs, PHEVs, and HEVs making up 76.3% of electric cars and vans.

However, it may not be the vehicles themselves that thieves are targeting. This could be because electric vehicles are usually connected in some way to the cloud, and like your phone it will become possible to disable electric vehicles over the air, rendering them useless to whoever is in possession. 

In fact, the motive for electric vehicle thefts of the future is likely to be for their batteries.

In 2020, batteries in electric vehicles made up 37% of the cost of an electric car, with the average electric car costing £44,000. Yet, whilst the cost of batteries is predicted to fall to around 19% by 2030, batteries will always be consumable part of an electric vehicle.

Because of this, companies around the world are developing more convenient and easier ways to change modular batteries, expanding the market and increasing demand.

The complexity of electric vehicle repairs

The Institute of Motor Industry (IMI) recently warned that as of Autumn 2021, vehicle workshops and motor garages in the UK do not currently have the existing skillset and talent needed to repair or service electric vehicles.

Calling for a significant government investment of £15 million towards EV technician training, they highlighted that the funding would play a critical role in building the much-needed skillset of 75,000 vehicle technicians.

CEO of the IMI, Steve Nash said: “the government has committed £1.9bn to tackling consumer uptake and charging issues… we are asking that £15m is set aside for employers to access to support their own investment in skills training to get their workforce EV-ready. This will be particularly important for supporting the UK supply chain.”

Ethical insurance and claims handling

Common insurance claims range from rear end collisions to toolkits being stolen from commercial vans. However, regardless of the engine type this happens with, an EV owner could face a higher premium than a petrol or diesel owner.

In truth, an EV owner could pay up to 14% more for EV insurance completely, even though many electric variants are smaller and less powerful than traditional vehicles.

This is because there is an increased risk of collisions as EV engines make almost no noise – this means that pedestrians and other road users may not hear the cars approaching, with research showing that electric cars are about 40% more likely to hit a pedestrian than a conventional vehicle.

At ECSG, we are specialists in technical claims handling. Our dedication to deliver bespoke claims solutions is born of the belief that, through collaboration and honesty, everyone, regardless of fault, should have access to market leading services and be treated fairly and respectfully.

Insurers, MGA’s and brokers alike choose us to support them with service fulfilment and supply chain execution, trusting that we will improve their claims spend and experience. And by working hand in hand with underwriters, we’re able to ensure that only completely valid claims are paid.

In fact, we’re experts in identifying issues with policy coverage and understanding policy mechanisms. No stone is left unturned; we’re here for our clients, no matter the claim or the fault.

To find out more about our professional motor claims handling platform, reach out today.