Will Increased Insurance Costs Derail The EV Revolution? Here are some of the reasons to consider, why it might. If you remember that car-carrier ship that caught fire and sank in the ocean in early 2022? The Felicity Ace, operated by Mitsui OSK Lines, that took 3,000 #Porsches #Audis #bentley and #lamborghini to the bottom of the Atlantic. Mitsui OSK Lines has filed a lawsuit against Porsche seeking 30 Million Euros in damages, blaming the fire on the lithium battery in one of their electric vehicles.
How does this impact the future of electric vehicle insurance. On the ship that was on fire, there was 498electric vehiclesand over 3,200 other vehicles, including 350 Mercedes Benz, were bound for Egyptwhen one or more of the EVs caught fire, costing at least one persons life, and injuring several others.
Atlast report, the #dutch coast guard admitted that it has been unable to put out the fire and that the ship has taken on water and is “listing” and on a trajectory toward a capsize. The ship sank, the total loss would also threaten the Frisian island of Ameland, part of a UNESCO World Heritage Site that is home to over 10,000 aquatic and terrestrial species and located near one of the world’s most important migratory-bird habitats.
But all in all, this was a freak accident, a one-off. This stuff never happens… Right?
There have been more cargo ships with electric cars on board catching fire lately, we have more details about the most recent cargo ship carrying nearly 3,000 cars that caught fire off the coast of the Netherlands, while traveling from Germany to Egypt. Almost one in seven cars on the blazing cargo ship are electric.
Recently, two firefighters died battling flames that broke out on another roll-on, roll-off cargo ship docked at Port Newark in #newjersey .Firefighters arrived at the scene when just five to seven vehicles on the 10th floor of the ship were on fire, but the fire quickly spread to the 11th and 12th floors.
Why does this matter? The cargo ship is one of several that have caught fire and burned over the past year. While this could result in a major environmental disaster if the ship sinks, firefighters and salvage crews are working to keep it afloat and extinguish the fire so it can be brought into a facility for reclamation.
Insurance companies are having to write off#evs with just a few miles if they are damaged. This is leading to higher premiums because of the many EVs for which there is no way to repair or assess even slightly damaged battery packs after accidents. EVs,according toConsumer Reports, may not withstand an accident as well as traditional gasoline-powered vehicles. EV batteries are vulnerable to damage, and with any indication of a compromised battery, insurance companies will likely declare an EV crash a total loss. This puts those EVs and their batteries in junkyards to degrade over time and hopefully not leak the chemicals or catch fire.
The higher costs for auto insurance only add to the already-higher costs of purchasing an EV, then procuring a personal charging station and spending more money to upgrade home wiring boxes especially for older homes.
The cost to insure electric cars continues to rise for multiple reasons. When insurance companies set their rates, they’ll look at claims that have been paid for similar cars, among other things, and set their prices.It comes as all motorists face soaring insurance costs, with prices said to be at an all-time high.
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00:00 Will Increased #insurance Costs Derail The EV Revolution?
02:03 cargo ship fires
04:00 environmental impact