Speed vs Safety: Insurance Data Reveals High-Torque EVs May Be More Accident-Prone

Is there a higher risk of accidents with faster electric vehicles? Evidence from insurance claims appears to indicate this possibility. The immediate power and rapid acceleration that electric vehicles boast, often praised by enthusiasts, is cited by some manufacturers as enhancing safety.

A comprehensive review of insurance sector figures suggests that the high-performance electric vehicles, particularly the sought-after all-wheel-drive models, could be contributing to the persistent increase in insurance prices for electric vehicles.

2025 model of the Porsche Taycan Turbo GT with the Weissach upgrade

Xiaohui Lu, the vice president of global business development at LexisNexis, told Green Car Reports that their data indicates a direct positive link between the increased torque output of strong electric vehicle motors and their associated loss costs.

According to an internal study of insurance claims by LexisNexis, which encompassed various electric vehicle (EV) brands and insurers, there's a notable connection between EVs that generate over 300 pounds-feet of torque and an increase in insurance loss cost. While LexisNexis did not disclose information regarding Tesla, the leading EV seller, the relationship becomes more significant when considering the EV's weight and the ratio of torque to weight.

The information gathered does not conclusively determine if the availability of significant power and quick acceleration encourages drivers to adopt more aggressive driving habits, nor does it ascertain if high-powered electric vehicles are intrinsically more dangerous.

Additionally, it's challenging to draw parallels with models from the gasoline-engine lineup, as cars possessing over 300 lb-ft of torque are quite rare, and usually fall into the specialized performance category, which could indicate a different demographic of buyers. When compared directly, gasoline-powered cars do not show such a sudden onset of risk.

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The situation is intricate—it affects not only those who drive electric vehicles, but also the expenses related to repairs and additional factors. The connection between two variables doesn't necessarily mean one causes the other, and insurance companies must delve into the reasons why electric vehicles with strong pulling power might be causing insurance premiums to rise across the board.

Lu emphasized that it's crucial to consider other factors beyond torque when evaluating the reasons for the elevated insurance loss costs associated with electric vehicles. He pointed out that vehicles with more torque generally come with heftier price tags, pricier repair bills, and potentially greater distances driven each day, all factors that contribute to the uptick in insurance losses.

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The feature in certain electric vehicles that allows for driving with just one pedal could potentially be causing minor car accidents, particularly for those who are not used to it. Lu mentioned, regarding the dangers, "The information we've collected indicates that there's definitely an adjustment period for drivers transitioning from traditional gasoline cars to electric vehicles."

Based on information disclosed by the company in June, electric vehicles (EVs) are significantly more expensive to insure. This is due to the fact that they experience claims 17% more often and have claim costs that are 34% greater compared to standard vehicle market segments. Furthermore, the volume of claim payouts and the value of these payouts are escalating more rapidly than the overall market rates.

The addition of more electric vehicles to the insurance mix didn't improve matters

The theory was that the limited number of electric vehicles (EVs) could be contributing to the issue. However, by 2023, electric vehicle sales in the U.S. surged by 54% compared to 2022, reaching 1.4 million. This led to a 40% increase in the total number of insured electric and plug-in hybrid vehicles, totaling 3.9 million. Yet, this significant increase in EVs only continued the pattern of more frequent and more expensive insurance claims.

The increased complexity in fixing even minor damages on electric vehicles (EVs) contributes to the greater expense, as evidenced by industry figures. Additionally, the heavier weight of EVs results in more severe damage to both the EV and any other vehicles involved.

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The firm indicates that these elements contribute to a growing profit dilemma for insurers of electric vehicles. As highlighted earlier, the rising expense of swapping out batteries could be somewhat responsible for these difficulties. Given the persistent hike in electric vehicle rates, it seems prudent that Tesla established its own insurance to attempt to reduce expenses and stimulate market competition.

The Highway Loss Data Institute, supported by insurance companies, indicates that Teslas are not involved in accidents more frequently than other cars, however, the resulting costs are higher.

Lu highlights that their research indicates certain electric vehicles come with reduced risk of loss and expenses, and that some individuals utilize electric powertrains for safer vehicle operation. Therefore, insurance companies must adapt to this emerging landscape to develop more intelligent and marketable pricing structures.

Four-wheel drive is often touted as a feature that enhances safety; however, this hasn't been the case with its application in electric vehicles thus far. As more information becomes available, it's possible that insurance companies might differentiate between models like the Model Y, Ioniq 5, and EV6, especially viewing the top-selling, more powerful all-wheel drive variants of these electric vehicles as high-risk performance vehicles.

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