Businesses that rely on company vehicles to complete work tasks need commercial auto insurance. However, with the rise of electric and autonomous vehicles, your commercial auto insurance needs may be different than they were just a few years ago. It's important to understand how this coverage applies to modern vehicles and what changes you might need to make to an existing policy.
Luckily, a local independent insurance agent can help you get set up with the right type of commercial auto insurance for electric fleets and autonomous fleets. They'll make sure your policy provides all the coverage your electric and autonomous vehicles need against several common threats, including vandalism and liability claims. But first, here's a guide to commercial auto insurance for electric vehicles and autonomous vehicles, including what it covers and why it's important.
Key Takeaways - Commercial Auto Insurance for Electric and Autonomous Vehicles
- Electric and autonomous vehicles have more complex coverage needs than standard fleets.
- EVs and autonomous vehicles have more expensive and custom parts that require prolonged repairs.
- Longer and more complex repairs are just one reason insurance costs are higher for EVs and autonomous vehicles.
- Commercial auto insurance for EVs and autonomous vehicles must include additional coverage, including for cyber liability and environmental liability.
- Working with an independent insurance agent is strongly recommended, as they can help compare your coverage options and tailor a policy to your unique business's fleet.
What Is Commercial Auto Insurance for Electric and Autonomous Vehicles?
Commercial auto insurance is a type of business insurance policy designed to protect company vehicles, such as delivery vans or trucks, from many common threats, including accidents and theft. A commercial vehicle policy covers risks for business vehicles that standard car insurance won't. Today, you can customize commercial auto insurance policies to cover electric and autonomous or self-driving vehicles. This coverage is part of a complete business insurance policy.
How Electric Vehicles Change Commercial Auto Insurance Needs
Electric vehicles (EVs) can have slightly different coverage needs from standard vehicles. Electric car fleet insurance must consider the special mechanics of these vehicles and the cost of repairs as compared to conventional fleets.
Unique commercial auto insurance needs for electric vehicles include:
- Battery and component coverage: EV batteries are more expensive to repair and replace than standard vehicle batteries. As such, commercial auto policies for EVs must account for the cost of battery repairs or replacements following malfunctions and accidents, battery degradation, and protection for other vehicle components, including control systems and electric motors.
- Cyber and data security threats: EVs have cyber risk and data breach concerns that standard vehicles don't. Commercial auto policies for EVs must include cyber liability insurance in the event of a cyberattack or data breach, and business interruption insurance in the event of an extended suspension of company operations due to the incident.
- Charging station and component coverage: EVs use charging stations that can be expensive to repair or replace after power surges, theft, and other damage. Commercial auto policies for EVs must also address coverage for damaged charging stations and equipment, coverage for losses from charging station vandalism and malfunctions, and optional coverage add-ons for mobile charging units or portable car chargers.
- Custom roadside assistance: EVs can also have different roadside assistance needs than standard fleets, such as requiring towing to custom repair centers or on-site charging. Your commercial auto policy will need to include coverage for towing to certified EV repair facilities, emergency charging services, and 24/7 roadside support for EVs.
- Environmental liability: EV batteries can cause harm to the environment if they leak or are improperly disposed of. As such, your commercial auto policy for EV fleets should include environmental liability insurance to cover the cost of lawsuits against your business for such incidents, as well as cleanup costs and regulatory fines.
An independent insurance agent can help you look for specific commercial electric vehicle fleet insurance that includes all the customized coverage you need for these unique autos.
Unique Coverage Considerations for Autonomous Commercial Vehicles
Self-driving vehicles also present unique insurance coverage considerations that standard fleets don't require. When insuring a commercial autonomous vehicle fleet, look for policies that include the following special coverage:
- Cyber liability insurance: Because of their connected operating systems, autonomous vehicles also carry a risk of cyberattacks and data breaches. When hackers break into these systems, they can cause safety concerns, including hijacking the vehicle. As a result, accidents and lawsuits can happen.
- Coverage for technological failures: Autonomous vehicles rely on complex software and sensors that can cause catastrophic failures and accidents if they malfunction. Look for a commercial auto policy that addresses coverage for these possible technological failures.
- Increased coverage for maintenance and repairs: Self-driving vehicles can be more costly to repair than standard fleets due to their advanced and complex technology. Be sure your commercial auto policy includes enough coverage for the increased cost of maintenance and repairs for autonomous vehicles.
An independent insurance agent can help you find the best coverage for self-driving commercial vehicles, which will include all the necessary protection.
Comparing Insurance Costs: Electric vs. Gas-Powered Vehicle Fleets
Commercial auto insurance can be much more expensive for EV fleets than traditional gasoline vehicle fleets. This can be due to several key factors, including:
- Increased repair expenses
- Extended repair times
- Higher original vehicle sale price
- More expensive and custom parts
- Increased technology and complex systems
- The need for specialized service technicians
- Higher claim payouts
It costs an average of over $1,030 more to repair an electric vehicle than a gas-powered vehicle, which results in higher claim payouts by insurance companies. Due to the increased risk of higher claim amounts, insurers must increase premium rates for commercial auto insurance for EVs. Still, an independent insurance agent can help you find affordable commercial auto insurance for electric vehicle fleets.
Claims, Repairs, and Risk Management for EV Fleets
Electric vehicle fleets have longer repair times than standard vehicle fleets. In fact, EVs take approximately 14% more time to repair than standard gas-powered cars. Repairs take much longer for EVs due to the intricate diagnostics and the difficult disassembly and reassembly required.
Because of the prolonged repairs required for electric vehicles, insurance premiums are higher. The extended time needed for repairs increases costs to the business as it must be without its vehicle for longer, which can create the need to rely on business interruption coverage. As such, claim payouts by the insurer are often much higher than for standard commercial autos, leading to more expensive policy costs.
How Much Does Commercial Autonomous Vehicle and Electric Vehicle Insurance Cost?
The cost of commercial auto insurance for your business's electric or autonomous vehicle fleets can vary considerably depending on the types of vehicles you need to insure. Other factors that can impact your premium rates include:
- Fleet size
- Location
- Driver history and training
- Annual mileage
- Specific vehicle uses
- Battery value and replacement costs
An independent insurance agent can help you find cheap commercial auto insurance for EVs and self-driving vehicles.
Commercial Auto Insurance Discounts for Electric Fleets
Fortunately, there are a few ways you can save money on commercial auto insurance for EV fleets. Many insurance companies offer discounts for using solar-powered charging infrastructure and other sustainable practices for your vehicles. You might also be able to earn a discount for your vehicle's safety features.
Further, many commercial auto insurance companies offer bundling discounts if you buy more than one type of coverage. You can also ask about green fleet discounts that are offered by some insurers for EVs. An independent insurance agent can find all the commercial vehicle insurance discounts for EVs that your business qualifies for to reduce your premiums as much as possible.
How an Independent Insurance Agent Can Help You Get Commercial Auto Insurance for Your Electric or Autonomous Fleet
When it comes to finding the right coverage for your business's electric or autonomous vehicle fleet, no one's better equipped to help than a local independent insurance agent. These agents have access to several of the best commercial auto insurance companies, so they're free to shop and compare policy options and present you with multiple quotes.
They'll ensure you get set up with a policy that offers the best blend of coverage and cost. And down the road, your agent can help you file commercial auto insurance claims and update your business's coverage when necessary.
FAQs About Commercial Auto Insurance for Electric and Autonomous Vehicles
What makes commercial auto insurance for electric and autonomous vehicles different from standard policies?
Commercial auto insurance policies for electric and autonomous vehicles must account for the unique technologies used in these vehicles and how repairs and replacements can affect potential costs. These policies must also provide coverage for special components required for these vehicles, such as custom charging stations.
Why are insurance premiums typically higher for electric and autonomous commercial vehicles?
Autonomous and electric commercial fleets have custom parts and technology and more complicated systems than standard vehicle fleets. Repair times typically take longer for these special vehicles, and parts are more difficult and expensive to replace. As such, claim amounts tend to be higher, and the insurance company must increase coverage premiums to cover their costs.
Which coverage options are most essential for businesses using EV fleets or autonomous vehicles?
Your business should consider coverage for environmental liability, cyber liability, custom parts and equipment, and specialized roadside assistance for its EV and autonomous fleets.
Can my business get discounts on commercial auto insurance by switching to electric vehicles?
Yes, businesses can get green discounts on their coverage from many different insurers if they switch from gas-powered to electric vehicles.
Sources
https://ksa-insurance.com/blog/autonomous-vehicles-commercial-auto-insurance/
https://www.insuranceadvisor.com/resources/electric-vehicles-impact-commercial-auto-insurance
https://www.pierceinsgroup.com/newsblog/high-cost-car-insurance-electric-vehicles/
https://www.mccartyinsurance.com/electric-fleet-commercial-auto-coverage-strategies/
https://www.bankrate.com/insurance/car/electric-car-insurance/