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Electric vehicles (EVs) may keep you from spending an arm and a leg at the gas pump, but you can count on shelling out more cash to insure them – about 25% more than their internal combustion engine counterparts, according to ValuePenguin. These higher premiums largely come from the fact that EVs are overall more expensive to replace and repair, but insurers still lack the long-term data required to know exactly how to underwrite this fledgling technology.
One tick against EVs when it comes to insurance is fire risk. EVs utilize lithium-ion batteries, which have shown to be at risk of igniting. Following Hurricane Ian, the Florida Office of Insurance Regulation encouraged those affected by the storm to be alert, as these batteries could increase in temperature to the point of ignition after being submerged in salt water. These fires are also capable of igniting or reigniting weeks after the event. Fires and explosions caused by lithium-ion batteries can also produce corrosive and poisonous gases.
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Brittney Meredith-Miller
Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].
