In my previous job, I sold car insurance.
Although the accident rate is decreasing due to safety devices and other factors, premiums are increasing except for some insurance companies in the January 2024 premium rate revision.
When we fearfully informed end-users about the renewal, they signed up, saying that everything is going up in price. We are grateful for that.
We often see EVs (electric vehicles) these days.
A major company has declared that it will convert all of its company cars to EVs within a few years, perhaps because they are decarbonised and will lead to cost reductions considering the rising price of petrol.
From a personal point of view, this may be fine in big cities, but is it safe in rural areas, especially in snowy countries, when you are stranded? I think so.
Furthermore, I wonder if it will really lead to cost savings? In fact, EVs are fast gaining popularity overseas.
The fact is that in other countries where EVs are fast spreading, the price of EV car insurance premiums has gone up so much that insurance companies are finally not even taking out contracts anymore.
This is similar to the reason why insurance premiums have increased in Japan, even though the accident rate has decreased.
It is true that the accident rate has decreased, but the price increase is due to the fact that once an accident occurs, the insurance payments are higher due to the rising cost of parts and other repairs.
The motor of an EV can be repaired in the event of an accident, but almost all other parts have to be replaced, resulting in a total loss, which increases the insurance payout and consequently increases the insurance premiums.
At the moment in Japan, insurance premium rates are not divided between petrol, hybrid and EVs, but if EVs become more widespread in the future, rates for different fuels may be introduced.