The first half of 2020 resulted in plunging automotive sales with historic lows. This was largely due to the social restrictions and lack of driving all together. Buyers were unable to travel and visit showrooms but they were encouraged to spend time outdoors. Bikes ended up being the all-time high seller, leaving car sales in the dust. However, in 2021, used vehicle sales have taken a sharp turn toward record numbers with electric vehicles taking a surprising leap in the ranks. As global health and conservation became priority number one, Boris Johnson introduced an ‘extremely ambitious’ plan to ban the sale of new petrol and diesel cars starting from 2030 with a ban on sales of new hybrid cars by 2035.
The RAC, a well-known breakdown and recovery company, surveyed 3,000 drivers with over half saying having access to a car is more important than it was before COVID-19 lockdowns. Additionally, 3 out of 10 drivers said they want to convert to electric or hybrid models. This was not new information to the RAC. They had already predicted the need for their recovery vehicles to be equipped and ready for BEV roadside assistance. In 2019, the RAC developed the first lightweight mobile electric vehicle charger. It’s capable of delivering enough power to ensure the vehicle can reach a charging point.
As the world becomes more green-minded, it’s clear that even though people are opting for their own vehicle leaving public transportation behind for now, electric vehicles are fast becoming the choice of new car buyers. For the new surge in conservation requirements, electric car sales have and continue to show great promise for the years to come. In a recent report by the Cazoo Data Services Analytics team, electric vehicle sales are on a steady climb and market share has skyrocketed since early last year.
It’s important to note that Cazoo Data Services insights show BEV sales account for just 0.7% of the total used car market sales so whilst it is heading the right way it is still only a very small part of the market.
At the moment, new BEV sales are the result of low company car tax and drivers are looking to lower their running costs. However, electric vehicles can be very expensive to repair and even dangerous to a degree. Although these vehicles are great for being eco-friendly, they also come with challenges and potential performance or defect issues such as:
- Complex and costly repairs on ADAS (advanced driver assistance systems)
- Electrical fires
- Cyber threats
- Disposal of critical components and raw materials and sustainable sourcing
- Increased complexity of supply chains and how new technology will impact product commercial liability insurance
- Total loss or write-off if certain battery damage occurs
What does this mean for insurers?
For insurers to be able to assess risk data accurately, they need to be able to see the full picture of any vehicle whether it’s electric or fuel operated. This isn’t always the case. Many times, data only shows surface information with no real deep comprehensive view of vital details that could demonstrate true value.
Understanding the exact details of a vehicle down to the type of power they need is fundamental in being able to accurately price risk at the point of cover. But many insurers still rely on standard risk groupings for vehicles without considering each vehicle’s unique history, status, and functionality. With the increasing popularity of electric vehicles, it’s so important to understand the specific information at cover and quoted on a VIN-by-VIN basis.
How can this be accomplished in the most accurate and expeditious way?
We can help! Cazoo Data Services is a disruptive force in the field of vehicle data and valuations. We bring innovative AI and data science-driven modelling to an outdated sector that relied heavily on manual editorial processes and opinion in an attempt to establish current and future vehicle values. Cazoo Data Services products offer clear data and insights that insurers love. One of their favourite choices is our Claims Companion. Our intelligent tools offer reporting and data that is capable of integration to:
- Show all the similar vehicles currently for sale and sold within the last 12 months. Without that information, claims handlers would have to do their own archaic market research through various listing sites and filtering tasks.
- Show DVLA data to include last MOT, plate changes and owner changes, eliminating the need to search several sites that typically don’t show previous adverts. Save approximately 15 minutes of handling time per claim.
All this combined with Cazoo Data services market value means insurers are more efficient and can offer fairer cover pricing and claim settlements.
Cazoo Data services data gives insurers the competitive edge with clear and real-time information to accurately price risk and cover. Don’t just take our word for it. Alex Baird of NFU Mutual says: “Cazoo Data Services gives us the full picture. Since we started using the tools, handler satisfaction has increased and the information makes claims handler jobs much easier and quicker. Cazoo Data Services is a one-stop shop for the information and customer experience service we need.”
To learn more about how we can support your insurance business here. and make sure you take a look at our other insightful resources.
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