Insuring the Future: Electric Vehicles

Sparks of innovation or sputters of concern?

The buzziest of buzzwords in conversations around vehicles today is undoubtedly “electrification.” While there is plenty to buzz about, it may surprise casual observers to learn that as of this writing, fewer than 1 percent of vehicles on U.S. roads are electric vehicles (EVs). Interested stakeholders and government agencies continue to push a future when EVs replace traditional internal combustion engine (ICE) powered cars and trucks, offering generous government subsidies, incentives, and tax credits while advocating eventual mandates – and yet, of the nearly 20 million cars sold nationwide in 2022, only approximately 800,000 were EVs. While that number is growing quickly and likely eclipsed 1 million for the first time in 2023 as manufacturers continue to introduce new models and options with promises of massive take-up over the remainder of the decade, it will still be less than 5 percent of all cars sold all year.