Prices for compulsory MTPL for electric cars should align with those for regular cars

15 February 2021 — Daniela GHETU
Compulsory MTPL insurance for electric cars should not be pricier than the one for regular cars similar in equivalent power and use characteristics, yet a differentiating may appear considering the existence in the country of registration of an official representative of its manufacturer.

An article recently published by, argues in favor of an equal treatment between electric and classic cars in what the MTPL pricing is concerned, quoting several motor insurers from the Baltic countries. Yet, the authors are stressing out that, in case the car is produced by a manufacturer with no repair representatives in the country, the total costs of repairs will be higher because of the transportation expenses, reflecting, finally, in the price of insurance.

However, the basic underwriting parameters remain for electric cars, as for all the other, the car technical data, traffic accident statistics and driver risk level. While it might be argued that electric cars have less mileage because they are used more like city cars, this is also true that, for this very reason, they are more used in high traffic condition. As such, although some particular factors differ from those of the classic internal combustion engine cars, in the end the differences are offset and there is no reason for a different treatment of the MTPL insurance for electric cars.

One of the fears that accompanied the appearance of electric cars in the insurers' portfolio was that damages occurred to the battery of an electric car will be synonym with its complete wreckage, but insurers' field experience showed that in reality damages occurred to the cars battery do not require such high repair expenses as to make the car repair financially unjustified.

The only factor that, for the time being seems to increase the MTPL price for electric cars in comparison with the classic ones remains the proximity of a manufacturer representative for repairs. Yet, for most electric cars of European origin this is not a real problem, leaving under consideration just the electric cars produced in the USA or other remote territories for which there is just a limited network of representatives in Europe.

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