Electric Vehicle Fires: The Alarming 48% Mystery – Closing the Compensation Gap for Victims
File photo of an electric vehicle fire
Electric Vehicle Fires: A Growing Concern
Research fellows Jeon Ji-yeon and Jeon Yong-sik from the Insurance Research Institute have highlighted the need for discussion on ways to reduce the gap in compensation for electric vehicle fires. In their report titled ‘Future Tasks for Electric Vehicle Fire Risk Management,’ they pointed out that the cause of electric vehicle fires is often difficult to determine.
According to statistics from the National Fire Agency, 44.6% of electric vehicle fires between 2021 and 2023 occurred while the vehicle was parked or charging. This indicates that it is likely difficult to respond immediately in the event of a fire. The researchers emphasized that while electric vehicles have a lower accident rate than vehicles using other types of fuel, the severity of accidents is higher.
They also noted that the property damage per fire for an internal combustion engine vehicle is 9.53 million won, but for an electric vehicle, it is more than twice as high at 23.42 million won. This significant difference in compensation amounts for electric vehicle fires highlights the need for careful consideration to ensure that the damage is not passed on to consumers as a burden through increased overall automobile insurance premiums.
A survey conducted last year by Electric Vehicle Fire Safety, an electric vehicle fire research institute, revealed that the cause of 48% of global electric vehicle fires was unknown. This lack of understanding of the cause of electric vehicle fires makes it challenging to determine the best course of action for compensation.
The researchers emphasized that drivers without personal vehicle insurance may face difficulties in receiving compensation for damages. Similarly, drivers without personal fire insurance may struggle to receive compensation for personal assets not covered by group fire insurance or evacuation costs. In contrast, about 88% of homeowners in the United States have home insurance, which can provide compensation if their home is damaged by an electric vehicle charger or fire.