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Economy

“China’s flood of new electric cars cost 20% more to insure than fuel-powered cars”

“…In general, the insurance premium for new energy cars — which includes electric — is about 20% higher than it would be for comparable traditional fuel-powered cars, said Wenwen Chen, director at S&P Global Ratings, who leads the firm’s research for China insurance.

Many factors go into determining pricing. But Chen said insurance companies find that the loss ratio — a measure of cost for insurers — tends to be higher for new energy vehicles than for internal combustion engine cars.

One of the main reasons she cited for a higher loss ratio is more accidents, especially more costly ones — since new energy vehicles often use parts that aren’t mass-produced yet…”

https://www.cnbc.com/2022/09/27/chinas-new-electric-cars-cost-more-to-insure-than-fuel-powered-cars.html

Wow! She just admitted that gas cars are more safe than electric. That wasn’t her intention I don’t think. Do you want to have a wreck? Buy an electric car. An insurance company is telling the reason why they charge more is because electric vehicle crash more.

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