EV cover paused by John Lewis after underwriter's decision

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【Summary】John Lewis Financial Services has temporarily stopped offering insurance for electric vehicles (EVs) due to concerns raised by its underwriter Covéa about the cost of repairing these vehicles. The decision does not affect existing policies or hybrid vehicles. This comes at a time when there is an increasing interest in EVs, with more models available on the market.

FutureCar Staff Oct 02, 2023 9:16 AM PT

EV cover paused by John Lewis after underwriter's decision

John Lewis Financial Services, the lending arm of the department store, has announced that it is temporarily suspending insurance coverage for electric vehicles (EVs). The decision was made by the underwriter Covéa, who expressed concerns about the high cost of repairing these vehicles. In a statement, John Lewis Financial Services explained that the pause applies to both new policies and renewals for EVs.

Covéa and John Lewis entered into a five-year motor insurance partnership in April 2021. Under this agreement, John Lewis markets the car insurance while Covéa handles policy administration, underwriting, pricing, and claims service. However, due to the recent concerns over repair costs, Covéa has decided to halt offering insurance coverage for EVs.

A spokesperson for John Lewis Financial Services clarified that the decision does not affect existing policies or hybrid vehicles. The underwriter's pause on new policies and renewals is temporary and is intended to allow Covéa to analyze the risks and costs associated with insuring electric vehicles.

This development comes at a time when there is a growing interest among motorists in switching to electric vehicles. According to a report by Allianz Partner, 60% of road users expressed a desire to make the switch, and the market has seen a significant increase in the number of electric vehicle models available. In 2021, there were 450 models available, twice the number from 2018.

However, there are concerns regarding the risks posed by electric vehicles, particularly to emergency service workers. Lithium-ion battery fires and the risk of electrocution are two of the leading dangers faced by responders at road accidents. Lithium-ion batteries can catch fire due to overheating, penetration, or overcharging. Richard Dunbar, a former chief fire officer and current managing director at a fire safety and investigation training consultancy, emphasized the importance of having the right knowledge about electric vehicles to protect first responders and ensure prompt medical treatment during emergencies.