If you are looking to install a charging station at home and in your business, it is crucial to consider insuring your commercial EV charger.
Do you know how to insure your commercial EV charger? Do you know where owner liability starts and where it ends? In case of cable theft or vandalism, who will pay for repairs?
We will answer all these questions and more in this article. So keep reading.
What is Electric Vehicle Charging Station Insurance?
In 2020 the Plug-In Car Grant (PICG) – one of the ambitions of The Government’s Office for Low Emission Vehicles strategy of ‘Road to Zero’ – received a £403m boost, extending the grant to 2022-23.
This additional funding presents opportunities for businesses like yours to respond to the demand for increased Electric Vehicle (EV) charging points throughout the UK. We’re here to support you, working closely with insurers that understand your market.
Electric cars have become a more viable option for car buyers. Many drivers are becoming more motivated to help the environment by going green. Fewer fossil fuel emissions can aid in healing the atmosphere.
Switching to an electric vehicle involves major changes. First, you’d need charging equipment. Many EV owners have set up chargepoints at home. Public stations aren’t something new, however.
What’s new is charging station insurance. What’s the coverage type that’s involved with electric vehicle chargepoint? Charging stations must be covered. Coverage amounts vary depending on the services and accessories they provide.
Should you drive an electric car like Tesla or Prius, you will require a wall charger. There are some cases wherein you need to utilize an adapter with an A/C or dryer plug, a well-installed EV charging station is your best bet.
That electric car charger is not cheap. If ever it gets damaged, just hope your insurance covers it. Insurance providers are now beginning to offer programs that specifically meet the needs and problems of electric vehicle owners.
Wall charger insurance coverage can reimburse you for specific types of damage or loss to an EV charger if:
- You are the owner of the charger
- You use it to charge the covered vehicle
- The charger is attached to the property or address where your car is parked
While optional in some places, the UK generally requires flat owners to have liability insurance for EV charging stations. This may protect your charger against specific accidents at certain limits.
When Does an EV Charger Pay For a Claim?
Once you’ve filed a claim with your insurance company, they will check the theft or damage. If they discover that it is a covered incident corresponding to the electric vehicle’s charger stated in your car insurance policy, they will pay for the limit designated by your policy contract.
While there’s no need for you to pay a deductible, your auto insurance rates may increase once you file a claim. You may be surprised to find out that the pricing on insurance policies such as electric cars is generally higher than the conventional automobile.
What An EV Charger Coverage Doesn’t Pay
Auto insurance policies have things they will not cover, also called “exclusions” to protect insurance providers from negligence or fraud. Should you file a claim for EV charger coverage, it may be under these circumstances for which it could be rejected:
- Manufacturer’s negligence, liability or defect, or faulty manufacturing
- Damage due to power charge use that’s not recommended by the manufacturer
- Intentional loss or damage you caused, or by someone you caused to damage the charger
- Wear and tear due to freezing, and electrical or mechanical breakdown
Tesla owners must read the owner’s maintenance and repair manual for suggestions. Be sure to choose a manufacturer-approved charger cable for your chargepoint or your insurance claim can be rejected. You are responsible for the proper installation and maintenance of your EV charging station.
Is the Charger Part of the Electric Vehicle?
Since an electric car can’t function without a charger, there’s also the question of whether the charger should be treated as part of the vehicle and included in the vehicle insurance coverage. The answer would likely be provided by the courts in the near future.
In the meantime, lessors may need coverage when financing these charging units and electric vehicles. This may go beyond a property security registration because the units are presently treated as “fixtures” installed to the real property instead of the vehicle’s addition.
Lessors may also need a NOSI or Notice of Security Interest over the land title where the unit is installed, and be named as a loss payee over the real property insurance. This potentially enables the lessor to get priority over the mortgage provider and next land buyers, but only in relation to the charging unit.
The item involved in having a charging station is the cable that plugs into the car. Some owners what to buy a detachable cord and keep it in the car’s trunk. Others pick a cable that is attached to their home’s charging station. A public station can provide a usable universal cord or leave the task to the owners.
Cable vandalism has been a major issue. The copper can be stolen and sold for profit. EV charging station insurance covers cord replacement. Replacement claims, though, may increase rates or drop the policy.
Cancelling the provision of a universal cable pulls out the coverage for cord damage or the owner’s liability of the personal cord and vehicle.
EV charging stations are being installed in several areas. A number are owned independently, like in a business. Others are possessed by the car or utility companies. Tesla, for instance, provides stations that owners of their cars can freely use.
Stations are generally available in condominium complexes or flats for use of residents. The stations are covered by the complexes’ property insurance. Theft, injuries or vandalism are covered.
Independent owners must have EV charging station insurance that will provide business owners with the same coverage. The priority should be on the customers and their property.
While the majority of electric car chargepoint insurance coverage was validated, there are still some areas that cause discord while insurance claims come and go. One case would be if the person gets injured by tripping over a charging cable. Insurance companies can always argue against a claim, depending on the cord’s owner.
If an owner has his own cord and brings it to the charging station, that cord is covered by the auto policy. It’s considered part of the vehicle. The charging station insurance can be liable if the incident took place within their property. An individual’s car insurance can also be considered since the cord is privately owned.
A lot of these scenarios are new because of the emergence of individual vehicle charging stations. It’s crucial that you get a clear understanding of the coverage. Talk about several scenarios with the representatives before making the commitment.
The main purpose of electric vehicles is to reduce pollutants, although they do consume much electricity. Businesses such as parking garages or malls must be aware of this increase in risk and expense.
A power outage could occur if the charging station is installed on the workplace or property. Free-standing stations don’t bear the same risk as those installed on another commercial business.
Transformers generally cool down in the evening and later hours during the day. Less usage and cooler temperatures generally give transformers an opportunity to recharge. Electric vehicles, though, are mostly charged after a work day.
That increases the odds of a power outage because hot transformers tend to become used even during their downtime.
Power loss can lead to a decrease in business revenue since a total shutdown is necessary. Business insurance coverage will include business loss. Some may get rid of this option for charging station owners, though.
There’s also a liability issue regarding the transformer and victims of the outage. Consider getting an EV charging station insurance policy that covers such an increase in risk.
Product Liability Warranties
There is also a question as to whether the manufacturer’s warranty goes all the way from the retail chain to the end-user of the charging equipment. The equipment may come from a third-party manufacturer and not necessarily the main manufacturer.
Contacts will probably insure and indemnify product-related liability related to the vehicle. If the coverage doesn’t include charging equipment exposure, consult the insurance advisors to know what may be needed – such as additional coverage – to sufficiently protect yourself.
Insurance Liability and Requirements
Many lessors and vendors may also need carriers to sign a form addressing how the charging equipment is being installed.
For instance, the lessors and vendors may cover warnings towards hiring a licensed electrician, inquire about any municipal permits required to acquire the charger, and consult the real property insurer to see whether restrictions or changes apply to the current insurance coverage.
Review these instructions and warnings, follow them strictly, and maintain records of their compliance. This will provide evidence of diligence should a charger-related incident occur, to reveal that the incident wasn’t due to the non-compliant installation.
If the EV fleet includes the leasing or buying of rapid chargers that draw more energy while in use, then there could be more electrical safety standards, insurance, permits and other regulations to meet.
The insurer may also ask for documents or photos that reveal the proper instalment of the unit, so follow the instructions you get from the lessor or vendor and consult with the insurance advisors regarding the requirements before installing the charging station.
Effect on Insurance Policies
Lessors and vendors may also want to be considered on both the real property insurance and auto policies to be covered for electric vehicle-related losses, damage or charger related to a charger explosion or vehicle accident.
Some court decisions indicate that filling a vehicle with gasoline is treated as part of the routine operation and that accidents may be covered if there are no obstacles like a driver smoking in the area. The same can be said with the charging procedure as part of an electric vehicle’s routine use, although the courts will probably point that out too.
The real property policy, vehicle policy, or both can prepare for the accident with complete coverage. It’s the reason why insurers may ask for records of the charger’s installation. The insurers may have their own requirements to follow so the coverage can be claimed should anything happen.
While leasing, and purchasing electric vehicle charging units, don’t forget to:
- Check out your warranties from the EV charger manufacturer to other parties.
- Check which installation and requirements are posed by the lessor or vendor, and follow them.
- Contact your real property or vehicle insurer to understand the needs of your coverages and other applicable requirements.
- Understand the collateral they provide the lessors and their impact.
Does Electric Car Insurance Cost More?
The majority of prospective buyers cost more upfront but in return for fuel efficiency and better environmental impact. But what a number of individuals don’t know is that buying an electric car also affects car insurance costs.
To prevent surprises when the time comes to switch and update your policy, you need to know how much insuring an electric vehicle costs.
Insurers are yet to make up their minds as to whether electric cars pose a bigger liability risk than a gas-fueled ones. Electric cars don’t need special coverage while policies are still like those available for traditional vehicles.
But electric car drivers tend to pay less in insurance, about £45 less than insuring a diesel or petrol car, according to a research conducted by the website Comparethemarket.com.
The difference is that electric vehicles generally cost more than conventional cars but have more incentives. You still keep the same liability limits over your policy while insuring an electric vehicle, although comprehensive insurance and collision may cost more because of the car’s price ta.
Collision insurance may also cost more since hybrid and electric cars may require factory-authorized maintenance after an accident because of their distinctive parts. As we gather more crash data on electric vehicles, insurance companies may consider them as higher risk.
The Bottom Line
We hope this article about EV charging station insurance was informative to you. EV charging stations are becoming more necessary as the demand for them increases. Many cities encourage the shift to electric cars by creating their own.
Public charging stations add major convenience to electric car driving. There are a number of easy coverage solutions in terms of public charging station insurance. There are some issues that need to be cleared out so that the coverage becomes most satisfactory for people.