Insurers Plan Performance-Linked Battery Cover for Electric Vehicles

Insurers plan to introduce performance-linked battery cover for electric vehicles (EVs) to address a key risk, the battery, which accounts for the bulk of an EV's cost. This new cover will kick in if the battery underperforms within its guaranteed life. Insurers are in talks with automakers to design specialized covers, including residual charging protection and performance guarantees. Extended warranties and battery protection are already being covered under insurance policies for EVs.

Illinois has taken a significant step toward advancing its electric vehicle (EV) infrastructure with the announcement of $18.4 million in grants for 25 new charging stations along interstate highways. This funding, part of the National Electric Vehicle Infrastructure Program, aims to support Illinois's goal of having 1 million EVs registered by 2030 Pritzker announces $18.4 million in grants for new electric vehicle charging stations^[1].

The state, under Governor JB Pritzker, Attorney General Kwame Raoul, and the Illinois Department of Transportation, has secured $148 million in total to build out an EV charging network. This latest round of funding follows the first grant of $25.3 million, which was used to construct 37 charging stations. The new grants will see the construction of 25 stations, with specific locations and grant amounts detailed Pritzker announces $18.4 million in grants for new electric vehicle charging stations^[1].

Meanwhile, in a significant development for the EV sector, Stellantis has unveiled a groundbreaking prototype vehicle featuring the Intelligent Battery Integrated System (IBIS). This system, developed in collaboration with Saft (a TotalEnergies subsidiary), marks a significant advancement in electric powertrain design. IBIS integrates inverter and charger functionalities directly into the battery, improving efficiency, reducing weight, and simplifying maintenance Stellantis – World Premiere: First Prototype Vehicle Featuring Breakthrough Intelligent Battery Integrated System Begins Real-World Testing^[2].

The IBIS-equipped vehicle, a new Peugeot E-3008, is currently undergoing real-world testing. The system promises up to 10% energy efficiency improvement and 15% power gain, along with faster charging times and simplified maintenance. This innovation could have wide-ranging applications beyond automotive, including rail, aerospace, marine, and data centers Stellantis – World Premiere: First Prototype Vehicle Featuring Breakthrough Intelligent Battery Integrated System Begins Real-World Testing^[2].

In parallel, insurers are planning to introduce performance-linked battery covers for EVs. This new cover will address the key risk of battery underperformance, which accounts for a significant portion of an EV's cost. Insurers are in talks with automakers to design specialized covers, including residual charging protection and performance guarantees. This move follows the existing coverage of extended warranties and battery protection under insurance policies for EVs Pritzker announces $18.4 million in grants for new electric vehicle charging stations^[1].

These developments underscore the ongoing efforts to foster a robust and sustainable EV ecosystem, addressing both infrastructure and technological challenges.