If you are looking to purchase an electric vehicle in the near future, there are a number of important things to keep in mind before you do so, especially when it comes to your insurance. Here are five:
1. Your charging station may not be covered by insurance
One of the most important tools you will need to buy if you are serious about owning an electric vehicle is a charging station. While many vehicles can be charged using the everyday plug we use for all other electrical devices, this will take an awfully long time. Instead, most manufacturers recommend purchasing a charging station. This device attaches to a wall in your garage and allows increased power to be fed to the car's batteries, charging them quicker.
While this is an essential part of owning an electric vehicle, they are not usually covered by motor insurance policies in Hong Kong. So if the vehicle and charger are damaged, there is a good chance you will have to pay for the repairs to the charger out of your own pocket.
2. Using technology like self-driving may cause issues with insurance claims
Electric cars are the perfect vehicles for technology, with many manufacturers integrating an ever increasing list of tech-based features like self-driving, advanced routing via GPS, tablet-like interfaces, etc. Arguably the most popular feature is self-driving. While it is pretty good, there have been accidents that occur when people are letting the car drive itself.
Because this is a new form of technology, insurers have not actually all implemented rules around whether they will cover accidents that occur while using this mode. For most accidents, it is highly likely that insurers will consider claims on a case-by-case basis. If, for example, you let your car drive itself while you sit in the back seat (no driver in the front seat), and there is an accident, it is likely that the insurer will deny a claim, as you basically are taking an unnecessary risk.
3. Some insurers may not cover cords connected to your car while charging
What we mean here is that if you are in a public location and are charging your vehicle you are going to need to use the power cord. Anyone who has power cords running along their floor has likely tripped on it at least once, and this could very well happen while you are charging your car.
If the person who trips is not the driver, then you may open to liability. If you have insurance this will be covered in most cases, but there are plans out there that don't cover power cords connected to your vehicle. It is therefore, a good idea to check with your policy to ensure you will be covered.
4.Your premiums may increase faster than other cars
This is not the case with all insurers, but if an insurer in Hong Kong deems electric cars to be risky, they will likely attach higher premiums for insurance. This is not ideal, but we have seen it happen in other countries, and it is entirely possible that it could happen here in Hong Kong. That's why it is so important to work with a broker like Kwiksure who can help you find the best value insurance for your car.
5. Not all car insurance policies for electric vehicles are created equal
Finally, like all other car insurance policies, there are a great number of policies on the market that now cover electric vehicles, or have included coverage benefits for electric vehicles in their existing plans. Because of this, you can bet that policies will have different levels of coverage for different cars. For example, some policies will include coverage of charging stations and cords while others may attach a limit. This makes it important to ensure that you not only shop around but also understand all of the coverage benefits offered by prospective insurance plans.
Talk with the experts at Kwiksure today to learn more about your electric vehicle insurance options.
