Vero Insurance is making lower-emission vehicle ownership easier for businesses, thanks to an enhanced Motor Fleet Insurance offering that also caters to EVs.
Vero is aiming to offer coverage that helps to facilitate its customers to focus on sustainability.
“Our organisation has a strategy to reduce our operational emissions, and off the back of this we wanted to encourage our customers to also reduce their impact,” said Vero’s Portfolio Manager – Commercial Fleet and Engineering, Richard Sandow.
“If we think about fleets specifically, we know that we’re early in the EV adoption cycle as most businesses seem to be in the piloting phase. We wanted to enhance our coverage to give customers the confidence that their insurance needs can be met and to help address their coverage concerns to support them in their transition.”
In expanding its Motor Fleet Insurance coverage, Vero analysed some of the unique risks and liabilities associated with EVs; from charge cable trip hazards, to thermal runaway, and of course if your fully electric vehicle runs out of charge.
“It’s important for us to educate customers on what the difference in exposure is compared to Internal Combustion Engines (ICE) vehicles, whether that be material damage or liability exposures,” Mr Sandow explained.
The team at Vero included some new definitions for the EV-specific exposures their customers might face, while also educating fleet buyers about the risks associated with EV ownership.
“When you’re charging a plug in EV the risks are different to fuelling an ICE vehicle. For example, when plugging the charging cord in you often walk away from the vehicle, which can increase the risk of trips and falls,” Mr Sandow said.
“Another leading cause of damage is incompatible chargers that can cause battery combustion, which can lead to third party property damage. We’re trying to make sure that, because your EV exposures are slightly different to an internal combustion engine (ICE) vehicle, there can be coverage for those sorts of exposures.”
The result is an improved fleet insurance product that addresses many of the EV-specific gaps that standard insurance options may not always factor in for fleet operators making the electric switch.
“We have a couple of benefits in there that other insurers may not offer” Mr Sandow said.
“We provide EV towing cover, where if a client’s fully electric vehicle runs out of charge and they’re stranded, we will pay the reasonable costs of towing that vehicle to the nearest charging station. Another is that we’ve got listed EV accessories that we’ve included cover for.”
A significant concern for many fleet operators is the unknown residual value of electric vehicles, with values dropping faster than comparative ICE vehicles. Vero offers peace-of-mind for fleet buyers, extending its New for Old replacement cover from two to three years – should an EV be a total loss.*
“So in the event of a total loss, anywhere up to a three-year-old EV, we’ll try to replace it with a new one of the same or similar make and model (subject to conditions and availability) which is a really material benefit for our customers,” Mr Sandow said.
The key enhancements to the Vero Motor Fleet Insurance for EVs include:
- Cover for charging risks: Liability cover when charging, and property cover provided for manufacturer supplied portable charging parts including the plug and cable^
- Extending the New Vehicle After Total Loss benefit from two years to three years for EVs*
- New cover for towing EVs (fully electrics only) that run out of charge to the nearest charging station: Vero will pay the reasonable costs of towing to the nearest charging station, no excess required
- New definitions for Thermal Runaway and Battery Electric Vehicles (BEVs) to improve understanding
Since launching the updated Motor Fleet Insurance in December last year, Mr Sandow said both brokers and customers have benefitted from improved peace of mind.
“The feedback has been really positive. We know brokers are getting a lot of questions from their customers who are considering piloting EVs, or that want to transition a significant portion of their fleet to EVs,” Mr Sandow said.
“When you include covers like new for old benefit, towing cover and those sleep-easy benefits – it can mean a lot to customers.”
Vero worked hard to ensure that companies electrifying their fleets aren’t charged an arm and a leg, too, with competitive pricing that doesn’t add to the transition costs.
“We’re making sure we support our customers in their EV journey through our improved products, dedicated underwriting team, best-in-class claim service and expansive repairer network.”
With more than 190 years of experience providing specialist insurance products, the Vero brand is a trusted option for your fleet. To find out more about Vero’s Motor Fleet Insurance offering, click here.
Disclaimer:
This article is sponsored by Vero Insurance. The information is intended to be of a general nature only. Subject to any rights you may have under any law, Vero Insurance does not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. Limits, conditions and exclusions apply. Read the Product Disclosure Statement (PDS) before buying this insurance. Go to vero.com.au for a copy. Target Market Determination is also available. Any advice provided by Vero Insurance has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.
*EV must be continuously insured with Vero Insurance from within 13 months of first being purchased until the total loss. Need to be the first registered owner and a vehicle of the same or similar make and model must be available. Refer to the PDS for details.
^Coverage limited to portable plug-in charging cable and charging plug supplied by the manufacturer of your EV as original equipment.
