With the popularity of electric vehicles increasing what impact is this having on both consumer hire choices and repair times?

Sept 2021

Replacement vehicles: the EV elephant in the room

The EV revolution is moving with pace; a recent study by Regit, in partnership with Cox Automotive, found that more than half of drivers would consider an EV for their next vehicle purchase. Great news for the government’s 2030 targets; but how is the insurance sector preparing for this uptick in demand?

The front-end of the customer experience is being tackled effectively; motorists can find a policy that is EV friendly. But with the automotive sector still under-skilled when it comes to vehicle repairs – the Institute of Motor Industry says the workforce is currently at just 6.5% EV qualified – the question is what impact that will have on vehicle repair turn-around. The knock-on effect of delays to repairs is customers having to use replacement vehicles for longer and that is the big elephant in the room.

Electric motorists have made a conscious choice to reduce their impact on the environment; they won’t find compromising on that choice particularly palatable when it comes to a replacement vehicle. And that presents motor insurers with an urgent need to ensure their replacement vehicle partners are well prepared for the march to EV.

A replacement vehicle network that is fit for purpose – as well as having a clear strategy for the future – is crucial. But it’s important not to focus just on the size of a supplier’s EV fleet. Look into the accessibility of low emission vehicles in the areas where there is greatest EV use – Clean Air Zones (CAZ) and Low Emission Zones (LEZ) – as well as the supplier’s own repair networks and how well equipped they are to handle Electric and Plug-in Hybrid vehicles.

At Europcar Mobility Group we have a clearly stated plan to achieve 20% of our fleet EV/PHEV by 2023. Supporting that goal we are currently establishing a network of Green locations in or close to Low Emission Zones, each with their own or access to charge points and a supply of EV/PHEV. We have also created a repair network for our own fleet that is EV-ready, ensuring that our vehicle supply won’t be undermined by off-road delays.

In today’s competitive motor insurance environment, insurers cannot afford to lose customer satisfaction points. Addressing the replacement vehicle elephant in the room now is therefore crucial.

James Roberts, Business Development Director – Insurance  
Europcar Mobility Group UK