The finding: Interest in electric vehicles (EVs) has ticked up in the past year, per Deloitte’s June 2025 ConsumerSignals report.

• Globally, 44% of consumers said they would prefer an EV for their next vehicle, compared to 39% one year ago.
• In the US, 37% of consumers want an EV, up from 34% in June 2024.

Why this matters: The number of insured EVs has grown faster than the number of insured vehicles overall in recent years. That’s meant higher claims for insurers, because:

• EVs have 17% more claims and 34% more severe claims than internal combustion engine (ICE) cars, per 2023 LexisNexis Risk Solutions data.
• Repair costs for EVs are 28% higher versus ICE vehicles, per Automotive Fleet. That stems from higher costs for EV parts and average repair times that are almost twice as long, per PropertyCasualty360.
• Drivers of the most popular EV on the market—Teslas—have the highest rate of accidents of any drivers, per LendingTree.

As interest in EVs continues to rise, so may claims—and auto insurers will need to adapt to protect their profitability.

Our take: The rise in EV demand marks a fundamental shift in the risk landscape. Insurers can no longer afford to underwrite EVs as they would a regular car and adjust premiums reactively.

Instead, they must move to a proactive model. This will entail:

• Incentivizing safe driving behaviors: This can take the form of discounts for drivers who demonstrate responsible use of their vehicle's performance. For example, because the powerful acceleration of many EVs contributes to higher accident frequency, a "safe acceleration" score measured through telematics could be a new factor in premium calculation. 
• Educating consumers: Insurers have an opportunity to help policyholders understand the unique characteristics of their vehicles, from proper charging procedures to performance capabilities. They could use targeted marketing campaigns to reach EV drivers with information about covering their vehicles and what can help them keep prices lower. They should also ensure customers understand the factors impacting prices during the sign-up process. This could reduce the frequency and severity of claims from driver inexperience.