"Fires per 10,000 Vehicles: Electric Cars 0.93 > Non-Electric Cars 0.90"

Over the past five years, the number of fire and explosion incidents per 10,000 electric vehicles was recorded at 0.93, slightly higher than the 0.90 incidents per 10,000 non-electric vehicles.

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According to the Insurance Development Institute on the 18th, from 2019 to last year, the number of electric vehicle own-damage insurance (comprehensive coverage) claims due to fire and explosion was 53 cases, averaging 0.93 cases per 10,000 electric vehicles. During the same period, the number of fire and explosion incidents for non-electric vehicles was 6,256, which translates to 0.90 cases per 10,000 vehicles. The damage amount per fire and explosion incident was 13.14 million KRW for electric vehicles and 6.93 million KRW for non-electric vehicles, making the damage for electric vehicles 1.9 times higher.

Earlier analysis of incidents from 2018 to 2022 showed that the number of electric vehicle own-damage insurance claims due to fire and explosion was 29 cases, about 0.78 cases per 10,000 vehicles. It is analyzed that fire incidents have increased along with the expansion of electric vehicle adoption.

Own-damage insurance covers direct damage to the vehicle caused by accidents occurring while owning, using, or managing the vehicle without involving another driver, compensating up to the insured amount. Over the past five years until last year, the total number of own-damage insurance claims for electric vehicles was 62,266, averaging 1,096 cases per 10,000 vehicles. This is 1.25 times higher than the 880 cases per 10,000 vehicles for non-electric vehicles. The average damage amount per incident was 2.96 million KRW for electric vehicles and 1.78 million KRW for non-electric vehicles, 1.66 times higher for electric vehicles.

The Insurance Development Institute stated that the main reason for the higher accident rate of electric vehicles compared to non-electric vehicles is "because electric vehicles are exposed to higher accident risk due to longer average driving distances," and also noted that "the ability for rapid acceleration seems to have an impact." Due to these reasons, electric vehicle insurance premiums are understood to be about 7% higher than those for internal combustion engine vehicles.