What does the future of insurance for electric cars look like? – Digital insurance | CarTailz

The Golden State continues to be the land of opportunity as it influences the timing and path of vehicle development. On August 25, 2022, the California Air Resources Board (CARB) approved the Advanced Clean Cars II Regulations: All new passenger vehicles sold in California are to be zero-emissions by 2035. These regulations are a direct response to Gov. Newsom’s 2020 Executive Order N-79-20, which requires all new passenger vehicles sold in California to be zero emissions by 2035. Governor Hochul follows her Notice on September 29, 2022 directing the New York City Department of the Environment to implement regulations for all new passenger vehicles sold in New York to be zero emissions by 2035 in light of the New York Environmental Protection Act Amendment (NY Assembly Act 4302/Senate Act 2758). With the trend towards electric vehicles, this raises questions about how the change and the latest technologies will affect car insurance.

Cyber ​​risks and threats
As vehicle technology advances with the growth of electric cars, we see more opportunities for cyber risk and hacking. Cars and trucks can have different entry points for a hacker. Security experts have for years raised concerns about the potential risks of hacking vehicles with advanced technology, which can include both petrol and electric vehicles.

A squadron attack was triggered of two people working together to access and start a vehicle highlighted an additional risk and consideration for insurers. Cyber ​​risks are not limited to theft of a vehicle by hacking a key card or key fob. Hacking into vehicles from remote locations must be considered, as has been widely reported for years. As transport networks grow, alongside traditional taxis, we are also seeing passengers plugging in their devices and there is potential for transmission of data, viruses or malicious software. EVs can be particularly vulnerable as they can plug into charging stations to replenish batteries. In terms of malware, the risk potentially increases when using unattended public charging stations that have been tampered with.

Cybersecurity and Mitigation
The National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT) issued this Cybersecurity Best Practices for Modern Vehicle Security on September 9, 2022“to support industry-led efforts to improve the industry’s cybersecurity posture and to provide NHTSA’s views on how the automotive industry can develop and apply sound, risk-based cybersecurity management processes throughout the vehicle lifecycle.” And the US Department of Energy published Vehicle cybersecurity threats and mitigation approaches in August 2019 to provide guidance on how to limit the risks associated with advanced vehicle technology.

insurance aspects
Auto insurance policies have traditionally been developed with an emphasis on the financial responsibilities associated with a vehicle owner’s and driver’s liability and protection against personal damage such as fire and theft. However, theft has now taken a different form. As described in the example above, thieves don’t just smash windows and use tools to hot-wire cars. They use technology to spoof trailers inside a home or on a person to gain access to vehicles. You’re looking for vehicles with unfolded mirrors, which indicates a key fob is in the car.

In addition, while advances in vehicle technology offer many benefits from a safety perspective that can potentially help reduce accident rates and the severity of bodily injury, replacing vehicles with more advanced technology can also be more costly and must be considered during underwriting assessments .

While automotive engineering involves risks, these risks are not insurmountable. Through careful underwriting and rating considerations, including evaluating vehicle data as technology and data transfer advances, the insurance industry has an opportunity to support the advancement and many benefits of electric and automated vehicles.

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