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It's Electrifying!

It's Electrifying!

With recent hikes in petrol prices, people are naturally keen to find alternative ways to put energy into their vehicles – and electric vehicles (EVs) could well tick all the boxes. However, how will insurance companies deal with these new kids on the block? We have all heard conflicting stories in the past regarding green cars – some say that hybrids can be more expensive to insure and yet some companies appear to offer a discount for hybrid vehicles. Recent advice recommends that drivers considering buying an electric car should consult their insurance provider to discuss adequate insurance cover as electric cars could require specific insurance policies compared to traditional vehicles.

Just what are these specific policies, and how may they affect EV drivers? We can only think of three reasons why EV cars should be classified differently:

>These cars, due to their unique engineering, carry higher repair costs and require parts which are non-standard so are often not readily available to the standard repair shops
>All car insurance rates are built on a risk profile. A lack of long-term crash data on electric vehicles automatically raises their standing in the risk category
>Smaller vehicles and electric vehicles are more susceptible to theft and, in the event of accident, are more likely to be written off, resulting in high expenses for the insurance companies.

Electric vehicles are not the cheapest cars on the market and so it perhaps follows that those purchasing these new age vehicles may have more money to spend on insurance. However, the insurance industry needs to educate people so they realise they must seek professional advice as to the cover they take out on these vehicles. If you are considering purchasing an electric vehicle, make sure you speak with an expert and get the right cover for the vehicle.

You may consider yourself a live wire in the trend setting stakes by owning one of these hybrid vehicles, but you don't want the plug pulled on any claims you may have to make in the future, so make sure you get the right advice!

Contact Westhill Insurance Services, today.

Posted on 2nd September, 2010