Youi shares how insurers can accelerate transition to electric vehicles

Youi shares how insurers can accelerate transition to electric vehicles | Insurance Business Australia

Mergers & Acquisitions

Youi shares how insurers can accelerate transition to electric vehicles

Insurance company backs government’s EV strategy released this year

Mergers & Acquisitions

By
Roxanne Libatique

As the insurance industry focuses on addressing the impacts of climate change, Youi has shared how insurers can support the National Electric Vehicle Strategy to accelerate Australia’s transition to using electric vehicles (EVs).

In April, the federal government introduced the National Electric Vehicle Strategy to improve affordability, create jobs, and reduce carbon emissions by:

encouraging the uptake of EVs;
boosting the supply of affordable and accessible models; and
creating the resources and infrastructure needed to support rapid growth.

How can insurers help accelerate transition to EVs?

Youi said Australian insurers can support the National Electric Vehicle Strategy through the standard inclusion of roadside assistance for EV customers, a feature already included in comprehensive car insurance policies.

“Measures such as this give Australians considering an EV purchase greater confidence, accelerating the necessary electrification process,” it said.

Youi noted that uncertainty around insurance availability and premiums is a barrier for Australians considering switching to EVs. Therefore, providing EV insurance will help the transition.

“In recent years, customers haven’t been able to get their hands on electric cars, but that’s now changing, and they have greater choice,” said Marni Jackson, head of product – vehicle at Youi. “Now EV ownership is becoming a more real possibility, customer thoughts are turning to practical aspects like car insurance.”

Tony Antonucci, executive general manager products and partnerships at Youi, said that Youi insures most EVs on the road and is ready to do the same for models that will hit the market in the next two years.

“We’ve always been supportive of electric vehicles, and we’re very comfortable underwriting them,” Antonucci said. “Car insurance premiums on our electric and newer ICE vehicles tend to be very similar – for insurers, the switch to electric vehicles should be an easy swap-over. It’s not the dramatic change we’re expecting with driverless cars, for example.”

Early this year, insurers warned that premiums for EVs are likely to rise unless manufacturers improve access to battery data and address barriers to repairing packs after minor collisions.