Thatcham introduces new Vehicle Risk Rating
It's out with insurance groups and in with five insurability assessments - including Repairability
The days of the insurance group are done. Though the 20-group system was upgraded to 50 a few years back, it’s now been decided that an entirely new approach is needed to properly assess vehicle risk in an ever-changing environment. Thatcham Research’s new regime will see the 1-50 model replaced with five insurability assessments to give a Vehicle Risk Rating; it will also be changeable over the life of a car as risk factors evolve, rather than a static rating as before. Where previously historical experience could be used to assess a vehicle, that’s no longer possible with the advent of so many new cars and technologies.
The five assessments are Performance, Damageability, Repairability, Safety and Security. All broadly familiar criteria for making an insurance assessment beforehand - faster, more exotic car will cost more to cover than cheaper, more utilitarian one - only now going into additional depth, with each assessment being scored from 1-99. Thatcham says this will mean ‘more accurate, individualised insurance premiums for consumers.’
The change reflects how vehicle tech is evolving, with features such as ADAS contributing to the Safety rating, the cost of materials used to make a car factored into the Damageability score and Repairability having to take into account things like powerplant. According to Thatcham’s research - and backed up by masses of anecdotal evidence - EVs are 25 per cent more expensive to fix than petrol equivalents, for example, partly through taking 14 per cent longer to fix. The old way isn’t really fit for purpose any more, it would seem. Not when insurers are paying out more than ever - £2.9bn for Q2 was an 18 per cent increase on the £2.5bn for the same time last year - and so presumably the accuracy of this VRR approach will benefit them also.
The Vehicle Risk Rating is said to have been a year and a half in the making, evaluating over 1,300 data points from 25,000 vehicles derivatives to give the best possible big picture of insurability. Its implementation will take just as long, the VRR running alongside the group system for the next 18 months to allow for adjustment.
Jonathan Hewett, Thatcham Chief Exec, said: "New technology is challenging the existing motor insurance model, prompting an unprecedented shift in the balance of risk from the driver to the vehicle. In response, we’ve worked closely with insurers, drawing upon cutting-edge data analysis to create a rating system that offers a more precise and detailed assessment of vehicle risks. This will not only help insurers price premiums more accurately but also encourage manufacturers to consider insurance outcomes when designing vehicles and implementing technologies.”
Imagine that - an emphasis on simpler, lighter, cheaper-to-insure and easier-to-repair cars doesn’t sound like a bad idea at all.
Personal Injury
Other 3rd party payments
Hire Car costs
Vehicle repairs
Other
They must know these figures and are more than likely trying to reduce whichever is the highest already.
I'm no expert on insurance but it "seems" the minute an "insurance job" comes in, all the related costs go up 50% and approved repair centers just rub their hands.
Happy to be wrong on this.
A new system sounds like a great way for insurance companies to claw back lost profits.
Maybe I'm being too cynical.
Personal Injury
Other 3rd party payments
Hire Car costs
Vehicle repairs
Other
If you just bend a wing and break a light the costs are going to be on par. It's when things like the skateboard are bent etc.
The big issue with some EVs ie Tesla has been that they simply haven't set up any efficient parts service which they'll now have to consider doing.
1) Go down
2) Stay the same
3) Go up
?
If you just bend a wing and break a light the costs are going to be on par. It's when things like the skateboard are bent etc.
The big issue with some EVs ie Tesla has been that they simply haven't set up any efficient parts service which they'll now have to consider doing.
The problem re. damaged EV battery fires is serious enough that portable sensor systems are being developed to watch over them and detect thermal runaway, gas venting etc. as it begins to happen. These packs can be especially dangerous because the casing can look perfectly fine and they can be sitting for weeks before they suddenly combust with little-to-no-warning. Though I don't work in accident repair, I've personally faced a lithium battery fire in a workshop and it's something I never, ever want to repeat again.
I know this isn't an apples-to-apples comparison because it lacks an EV-style BMS but I actually have a Li-Ion car jump starter / power bank sitting in the fire pit in my back garden right now. It was sitting on a shelf for months but one day I walked past and noticed that at least one cell had swollen to the point it'd burst the plastic casing of the power bank itself!
Gassing Station | General Gassing | Top of Page | What's New | My Stuff