Hyundai’s Netflix EV Plan is a Wake-Up Call For Insurers

Straight talking from the Ed;

Are you active in motor insurance would like to stay in the game? Then pay attention to Hyundai’s new Mocean monthly Netflix style subscription plan.

It includes the car rental, comp insurance and all servicing. You can stop the plan at one month’s notice and change cars every six months. For many people, renting a car, especially an electric car, for a short term secondment or freelance job, might make more sense than owning a car and taking the big hit on depreciation. Particularly if you live in a city where pure EVs get free parking, or even free charging at some locations.

But the key issue is the default fully comp insurance being part of the package. Obviously people renting a car from Hyundai, BMW, Audi, VW, Toyota etc aren’t really bothered who does the insurance, so long as they are covered. Most drivers aged 25 and above with under 3 points probably will be. So that’s another cost of say £40-£70 per month on top of the lease costs on a normal petrol/diesel car absorbed into an EV rental plan. Handy.

The danger is that in the longer term brokers and insurers alike will be fighting over a shrinking pool of less wealthy drivers, rural car owners and the retired, who will be less likely to commit to a 4K per year rental plan, no matter how much they value their personal independence.

Maybe the answer for insurers is a new regulation, which gives car renters the right to shop around for the best value insurance on their rented car? That would require some lobbying, similar to the campaigns to get loyalty rewarded for insurance customers, or gas/electric bill payers to get a level playing field on basic PAYG tariffs, from consumer groups. But will MoneySavingExpert and Which? see inclusive insurance as any sort of problem, or a handy solution?

As ever, the detail of the policy T&Cs will be crucial for EV rentals;what will happen if a rental driver makes a claim and then the monthly subs cost rises by £50pcm? Do they get the right to cancel, switch, or must they pay extra because of an at-fault accident? How many named drivers can you add and how much is the cost per day, per trip?

There are interesting times ahead for car insurers and car makers alike.

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About alastair walker 6876 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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