Hybrid and EV insurance is set for surgery

The global hybrid and electric car (EV) insurance market is expected to grow at a compound annual growth rate (CAGR) of 16.88% by 2030, according to the latest analysis by HTF Market Intelligence.

This growth projection is due to the growing adoption of hybrids and EVs, which is driving the demand for insurance products designed for these types of vehicles.

Hybrid and EV insurance refers to special coverage that addresses the unique risks associated with these vehicles, such as the high cost of replacing batteries, the availability of charging infrastructure, and the potential impact of government incentives.

As hybrid and EV ownership increases, so does the demand for insurance policies that meet these specific needs.

Additionally, the report analyzes market dynamics, emerging trends, and key drivers, challenges, and constraints affecting the market.

The report sets out several objectives, including:

• analyzing and forecasting market size by value and volume;
• estimating the market shares of key sectors; again
• examines the development of the hybrid and EV insurance market in different regions.

It also aims to provide a detailed assessment of factors influencing market growth and to assess the business strategies of market-leading companies, including activities such as research and development, partnerships, and new product launches.

Hybrid and EV insurance market trends

One of the main trends highlighted in the report is the increase in consumer switching rates towards environmentally sustainable transport, which is increasing the demand for specialized insurance products.

The expansion of EV and hybrid markets across various regions provides a significant opportunity for insurers to introduce and expand specialized insurance offerings.

However, the market faces challenges, including the high cost of repairing or replacing critical components such as batteries and electric drives. These costs can make it difficult for insurers to handle claims efficiently.

In addition, the high initial premiums associated with EV and hybrid insurance, due to the high cost of parts and repairs, may discourage some consumers from choosing these specialty insurance products.