Electric Luxury SUVs May Give Liability Claims Costs A Jolt

Several car makers have announced ambitious plans to go electric in the next decade or two, but as more electric vehicles (EVs) hit the streets, there could be an increased insurance risk, according to one insurer.

With the growing popularity of EVs — nearly 3 million are expected to be sold this year globally, while 30% of all vehicles are anticipated to be electric by 2040, according to expert estimates — insurance professionals at AXA in Switzerland wanted to know what this meant for insurers, emergency responders and pedestrians.

The answer? The possibility of an increased risk of collisions, specifically when it comes to electric luxury SUVs compared to traditional internal combustion engine (ICE) vehicles, said Bettina Zahnd, accident research and prevention manager with AXA in Zurich.