Taiwan's new EV insurance plans to ensure fair pricing

Premium rates for EVs won't exceed those for gas vehicles by 50%.

Beginning 1 July, electric vehicles (EVs) in Taiwan will have dedicated insurance plans, aligning closely with rates for gas-powered vehicles, Taipei Times reported.

Tesla Inc. dominates the Taiwanese EV market, led by the Model 3 and Model Y, according to insurance firms. 

Despite their growing presence, EVs constitute less than 0.005% of all vehicles in Taiwan, with gas-powered cars at 94% and hybrids at 5.5%.

EVs are treated uniquely due to the necessity of replacing the entire chassis after any collision, leading to repair costs exceeding hundreds of thousands of New Taiwan dollars. 

To ensure fairness, the government introduced new insurance plans for EVs, preventing gas vehicle owners from subsidizing EV repair bills. 

Contrary to earlier predictions, premium rates for EVs won't exceed those for gas vehicles by 50%.

Under the Taiwan Insurance Institute's guidelines, Type A comprehensive insurance for EVs matches gas vehicle rates, whilst Type B and C plans are respectively 6.8% and 9% higher. 

Type B covers all Type A aspects except intentional damage by third parties, and Type C insures only vehicle-on-vehicle collisions.