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Car insurance implications of electric vehicles


The transition to electric vehicles (EVs) in South Africa is gaining momentum, fuelled by governmental incentives and sustainability efforts. In this article we will explore the insurance implications and considerations for consumers amidst this transition, whilst referring to expert opinions ¹

Government Initiatives Driving Change

Recent governmental incentives, such as 150% investment spending claims for electric car (EC) producers and reprioritized funds, signal a positive shift towards promoting green vehicles. These initiatives are seen as catalysts for increasing EC adoption and altering the insurance landscape. ¹

Anticipating a Surge in EV Insurance

Despite minimal coverage of electric or hybrid vehicles by specialised insurers, impending regulations favouring EV production and the rise of solar energy suggest a forthcoming surge in EV insurance coverage. The expert addresses consumer concerns regarding charging infrastructure and technological advancements that are making EVs more appealing. ¹

Managing Risks during Load Shedding

Load shedding risks EC usage due to strain on backup power systems. It is important that there are backup systems can support EC charging to prevent inconvenience or damage. ¹

Understanding Insurance Costs

The expert reassures consumers that insuring an EV is comparable in cost to traditional vehicles but acknowledges potential adjustments due to higher value and repair costs. She emphasizes the importance of using accredited repairers for EVs to maintain warranty and insurance coverage integrity. ¹

Navigating Battery Concerns

Statistics suggest electric vehicle replacement parts are slightly pricier than those for combustion engine vehicles. It was clarified that insurance coverage regarding battery failure, noting that while standard policies typically exclude wear and tear, comprehensive motor policies may cover damage from accidents or theft. ¹

Addressing Flat Battery Situations

Insurance does not cover flat battery replacement costs but can arrange towing services. Home chargers fall under home insurance policies, highlighting the need for comprehensive coverage beyond vehicle insurance. ¹

Insights into the Future of EV Insurance

Key insights to be outlines for the future of EV insurance, is the potential for competitive rates, essential comprehensive coverage, and the variability of coverage based on individual risk profiles. ¹

Conclusion: Navigating the EV Insurance Landscape

As South Africa transitions to ECs, understanding insurance implications is crucial. The expert emphasizes the importance of proactive planning and staying informed to safeguard investments and ensure peace of mind. ¹


The article aims to provide South African motorists with everything they need about insurance implications of electric vehicles.

Do you want to buy car insurance now? Get affordable car insurance with one-of-a-kind benefits such as fixed premiums*, reducing excess*, and exceptional service with Prime South Africa. T’s and C’s apply. Please get professional financial advice from a certified financial advisor to ensure you select the appropriate financial services product.

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