Insurance for electric vehicles? Problem solved!

Electric mobility is a hot topic nowadays, and although the Czech Republic still lags behind Western Europe, the popularity of new and used electric cars is growing. However, one of the problems with electric cars is their insurance. Insurance companies are slow to adapt and that is why insurance specifically targeted at electric vehicles is limited. Having said that, Czech customers can now arrange additional insurance, such as extended warranties or GAP insurance for their electric vehicle.

Reducing the carbon footprint is one of the most important global topics today. The European Union wants to achieve carbon neutrality by 2050, and the European Parliament recently approved a proposal that would ban the sale of new cars and light commercial vehicles with combustion engines from 2035.

Overall, today every 10th new car registered in the European Union is electric, and even though their share in the Czech Republic is still 2%, it is expected that by 2030, 60 to 65 percent of new cars in the Czech Republic will be electric. Today, more and more Czechs are choosing electric cars due to the reduced availability of conventional vehicles with combustible engines. In the first half of 2022, there was an 88% year-on-year increase in registrations of passenger electric vehicles.

The popularity of used electric cars is also increasing. Used vehicles accounted for a quarter of this year's registrations. And since Czechs are generally very interested in used cars because of their greater affordability, experts see great potential in the used car market for accelerating the introduction of electromobility to the Czech Republic.

The popularity of electric cars will also increase with the development of infrastructure and the increase in the number of charging points. According to the plans of the Ministry of Transport, 17,000 charging stations should be created within 6 years, and the investments should exceed 5.5 billion crowns. Lower maintenance and operation costs are also a big argument for purchasing an electric car. For example, the Volkswagen car company has calculated savings on service costs of up to 35% for electric vehicles.

Innovative insurance for new and used electric cars

The emergence of electromobility brings a revolution not only on the roads, but also in other services related to it. Insurance is no exception. Nonetheless, since electric cars are still relatively new on the roads, insurance companies lack the necessary data to evaluate the risks, whether it concerns defects, battery life or the liquidation of damages. For example, they fear a higher risk of fire or higher repair costs because of more complex technologies, so they are in providing insurance and therefore there are options available on the market.

DEFEND INSURANCE GROUP is a pioneer in supplementary insurance for both new and used electric vehicles within the Czech Republic and countries throughout Central and Eastern Europe. For more than 25 years DEFEND INSURANCE GROUP has focused on innovative insurance solutions for the automotive industry including related products and services made available at almost 4,000 new and used car dealers, insurance brokers and authorized representatives in 7 European markets.

„The purchase and operation of a vehicle represents one of the biggest expenses for every household. Furthermore, it is necessary to consider the risks of possible additional expenses for repairs or loss of the vehicle total damage or theft. And in the case of electric cars, these expenses are even higher, because in the Czech Republic they are one of the most expensive explains Gabriela Motejzíková, Country Manager of DEFEND INSURANCE GROUP for the Czech Republic. She went on to add that the possibility of purchasing insurance for electrics vehicles can also be a major selling point as its one less reason to be afraid of purchasing an electric car.

Protection against unexpected failures including battery failure

There are still a lot of unknowns surrounding electric cars and the lifespan of their components, which is why many Czechs are still reluctant to buy them. But with our extended warranty, drivers have to worry about sudden mechanical and electrical breakdowns. The DEFEND Car Protect e-DELUXE warranty offers protection similar to the manufacturer's warranty and therefore covers all important parts, including the battery and charger. It is possible to arrange for electric cars of up to 6 years old with a maximum mileage of 160,000 kilometres and another great advantage for both drivers and sellers is the number of optional parameters that allow the warranty to be adjusted to the client's needs and the dealer's business strategy.

In addition, there is an unlimited number of insured events available up to the limit of the insurance benefit, which can be for one insured event or up to the purchase price of the car. This is a great advantage in the case of electric cars, which are among the more expensive cars. DEFEND warranties cover not only car parts, but also the cost of work according to the service price list, vehicle towing, and a replacement vehicle as part of additional coverage.

Protection against loss of value of the electric vehicle

It is also possible to protect yourself against financial loss as a result of a drop in the price of an electric car, which is necessity for many models, as they are associated with rapid depreciation. In the event of total damage or theft, DEFEND Gap insurance, will cover the difference between the purchase price of the car and the market value at the time of the insured event or protects against debt to the leasing company or bank. Just like the extended warranty, Gap insurance from DEFEND INSURANCE offers a number of optional parameters so that clients can adjust the insurance to their needs and pay nothing extra.

Quality first

„Electromobility is gaining momentum in the Czech Republic, and in the coming years support and pressure for its development will increase. At DEFEND INSURANCE GROUP, we are already prepared for this, and accordingly, we offer our partners and their client's insurance for electric cars and other electric vehicles, along with our quality customer service and fast claims handling. Clients always come first for us, and we value their trust in us. Thanks to this, we provide our partners not only an opportunity for business growth, but also the means to significantly contribute to building customer loyalty towards their companies," concludes Gabriela Motejzíková.

Are you interested in offering extended warranty and GAP insurance for electric cars? Do not hesitate to contact us by e-mail info@defendinsurance.eu or phone number +420 233 103 111.

The article was published in the Autoservis & Mobilita magazine (September 2022).