Insurance exclusive to electric vehicles (EVs) will begin implementation on July 1, according to the Financial Supervisory Commission (FSC) in an announcement on Monday.
The FSC pointed out that the structure, energy source, and maintenance of EVs differ from traditional vehicles, which dictates that risk profiles cannot follow traditional evaluation methods of fuel vehicles. Also, due to the expense of parts damaged in accidents, insurance companies usually face high compensation costs. With some companies only providing coverage under certain conditions or even refusing coverage, prospective buyers are often deterred from purchasing an EV, and current owners have difficulty finding policies.
EV-specific insurance clauses additionally cover battery failure within the scope of product liability to provide owners with more complete protection, according to the FSC. EV owners will also be able to add insurance to protect the electric vehicle from damage or loss caused by charging.
The FSC said that, in response to global climate change, the sustainable development of transportation has become paramount for the promotion of net-zero carbon emissions. It added that it hopes that more industry players will launch exclusive insurance products for electric vehicles.