Advances in battery technologies and environmental concerns continue to bolster a growing interest in the adoption of electric vehicles (EVs).
While the U.S. lags Europe in adoption, multiple indicators suggest a shift away from many hybrids to more full electrics. There is also an acceleration in projected sales trending toward mass adoption in the U.S. well within the current decade. With the proliferation of EVs come new challenges for insurers. Traditional models for underwriting internal combustion engine (ICE) vehicles do not translate. Values, depreciation rates, repair costs and both first and third-party exposures present new and unique distinctions. Consequently, the processes, resources, and expertise requisite to administering claims with EVs must be re-examined and enhanced to provide appropriate expert adjudication and mitigation.
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