Insurance companies should give premium discounts for annual battery health checks of clients’ battery-electric vehicles to help keep premiums down and affordable for low-income families.
That’s the opinion of U.K. battery health specialist Altelium, which says the rollout of electric transport to low earners can only happen if there is confidence in the health of secondhand BEVs.
It says the insurance market is overlooking the importance of these health checks that should be run annually to give insight into how the vehicle has been driven plus an accurate assessment of the vehicle’s value. In the U.K., the used-car market is where 80% of people source their vehicles. In 2023, used BEV sales grew by 90.9% to 118,973, but this was just 1.6% of all used-car sales. Sales of used BEVs may exceed 700,000 by 2030, more than 9% of all used-car sales.
It says a healthy battery reflects the type of driver who has been the previous owner. Smooth drivers, who avoid repeated fast charging and have been easy on the brakes and acceleration, will be protecting the vital resources in the battery. This will allow the battery to maintain performance and range longer and give the vehicle a higher resale value.
The company suggests insurance discounts tied to annual battery health testing would:
- Incentivize owners to drive and operate their vehicles to maximize vehicle health, protecting value and resources;
- Offer a way to reduce insurance premiums through safer driving;
- Align with the broader goal of promoting equal access to sustainable transportation.
Alex Johns, Altelium partnership lead, says: “The insurance industry should be exploring with a sense of urgency the value of an annual battery health check as part of policy renewal. It would put the insurance industry firmly on the side of the consumer and makes complete sense for people and planet alike.”
