Green replacements for car insurance write-offs?
Insurers could start replacing written-off or stolen cars with electric vehicles (EVs)…
And that’s big news for the automotive industry.
The plans are part of a long-term plan to improve sustainability, but how would you feel if an EV suddenly turned up after your car had been nicked?!
Okay, it’s probably not going to work like that… but with the industry under pressure to meet emissions targets, it’s a significant change that’s on the horizon.
The Association of British Insurers (ABI) revealed its ‘Climate Change Roadmap’ as it looks to settle home and car insurance claims in a greener way…
Considering that they settled 2.6 million motor insurance claims and more than 730,000 property claims in 2020, it’s fair to say that their net-zero target could have a BIG impact.
Road transport is one of the heaviest polluting parts of society, so any move towards a secondary sustainable EV market is a positive for the environment.
New conventional petrol and diesel cars and vans will be banned from sale in the UK from 2030, which has resulted in rapid growth in EV sales.
BUT secondary markets such as write-offs, stolen vehicles, and courtesy cars are now being given significant attention.
The sector has faced criticism in recent years for rising premiums, but it insists that work is being done to prepare for a greener future, with the associated costs being factored into their pricing.
The ABI’s target is to get insurers moving towards a net-zero target, and the plan reflects the huge number of areas in which insurers operate.
The roadmap includes guidance on educating pension savers on investments, and the resulting environmental impact, as well as encouraging customers to accept repaired and recycled items as part of settlements.
Guidance is being developed in line with investigations into how items damaged during a flood or storm could be sent for re-use or repair, with focus being moved to ensuring that waste and scrappage is minimal.
The obvious issue here is charging points – don’t worry, though, that’s not gone unnoticed.
Central to the plans is the development of a sustainable secondary market for electronic vehicles, with investment being made to ensure that policies are consistent for re-using and recycling charging equipment as it becomes more and more common.
So, do you fancy a new Tesla?
Alright, I’m sure it’s not as simple as that… but it’s a pretty cool way to make the transition to EV!
The automotive industry may be one of the heaviest polluting sectors of society, but as the Director of the ABI said, this means that they’re uniquely placed to play a pivotal role in the future of our environment.
In fact, through initiatives, policy, and investment, the insurance sector should drive the green economy forwards as the automotive industry, and the wider world, prepares for significant changes in the years to come.
Are you ready to wave goodbye to internal combustion engines and say hello to your electric future?