Robert Sleat, Head of Leasing Brokers and Telesales at Premia Solutions, thinks more brokers should offer GAP insurance to new electric vehicle (EV) and hybrid drivers due to their higher accident risk.
YOU might assume that EV drivers are less likely to make an insurance claim than drivers of petrol and diesel vehicles given that they typically drive fewer miles but it appears that the reverse is true.
A study by researchers at Lero, the Research Ireland Centre for Software, and University of Limerick found a 4% increase in at-fault claims involving EVs compared to internal combustion engine (ICE) vehicles. Hybrid drivers appear to be at even greater risk, with 6% at-fault claims compared to ICE drivers.
Although the research focused on telematics data from commercial vehicles in the Netherlands, as well as insurance claims, there have been similar studies from UK insurers showing an increased risk here too.
Why are EV drivers more likely to crash?
The Lero-UL researchers say that driver behaviour changes significantly when switching to EVs or hybrids.
Anecdotally it is thought that the instant torque and rapid acceleration of EVs can catch new EV drivers off guard, and increase the risk of accidents.
There is also an increased risk of the vehicle being written off as repair costs can be significantly higher for EVs.
The result? Customers can find themselves in the difficult position of:
- Losing the vehicle
- Still owing money to the leasing provider
- Facing unexpected financial stress early in the agreement
How can leasing brokers help protect EV drivers?
In this situation, GAP can be invaluable to EV drivers. Our online platform, Look After My Car, gives leasing broker customers exclusive offers on a range of insurance products and services specifically designed for drivers of leased vehicles.
Membership is free for a broker’s customers and that gives them GAP insurance free for three months, ensuring customers have essential protection during the highest-risk period of their lease.
Key points your customers value:
- No automatic renewal
- No payments taken
- Immediate peace of mind from day one
At the end of the free of charge period, customers are given the option – not obligation – to upgrade to full GAP cover, which can include:
- Up to £5,000 initial rental protection
- Up to £500 excess contribution
- Up to £500 excess contribution even if the vehicle isn’t written off.
- £500 inconvenience payment
- A courtesy car for up to 30 days
Even if a customer chooses not to upgrade, they still benefit from having had protection in place during the most vulnerable early months of their lease.
How can leasing brokers make Look After My Car available to their customers?
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Sarah Tooze has been an automotive journalist for more than 15 years, specialising in the fleet and transport sectors. She has held senior positions at industry-leading B2B titles Fleet News and Smart Transport, and led campaigns championing motorists as consumer editor for online used car marketplace Heycar and motoring advice website HonestJohn.co.uk. In 2017 she won the Newspress Automotive Business Journalist award.
