Dawes Underwriting Australia is offering enhanced motor products with more provisions for electric vehicles. 

The Steadfast network member was one of the first underwriting agencies to arrange insurance for EVs in Australia, starting with Tesla cover about a decade ago. 

New features include a $1000 sublimit for alternative transport if a client cannot charge their vehicle due to a power cut. There is also up to $2500 for the repair of a home charging point if the insured’s EV damaged it.

“These changes reflect Dawes’ commitment to modernisation and adapting to a fast-changing market,” senior technical underwriter Tom Hall said. 

While insurance for EVs is slowly becoming more accessible, he says there are still concerns over the risk of battery fires, and policies vary across providers. 

“Some insurers cover thermal runaway battery fire and others don’t. It’s a good example of why it’s so important for EV owners to receive specialised advice and understand the fine print of their insurance cover.” 

A record number of EVs were sold across Australia last year, bringing new challenges for insurers and underwriting agencies. 

“When insurers calculate premiums for popular and conventional vehicles, they draw on years of statistics on what might go wrong and the cost of repairs, but the relatively short history with EVs means there’s still uncertainty in the market,” Mr Hall said.  

He recommends brokers and insurers increase EV risk mitigation advice, such as correct charging practices. 

“It’s important that [owners] can access expert advice and understand the need for specialised cover.”

From Insurance News magazine: Why lithium-ion batteries pose such a powerful problem for insurers