Electric Car Chat - How Software Updates Can Impact Your Insurance Costs - Insurance Revelations Pt5

Unlock the mysteries of insuring electric vehicles as I, Graham Hill, author of "Electric Cars Truth Revealed," guide you through what every prospective EV owner must know. This episode zeros in on the critical yet often misunderstood realm of car insurance, with a tale that will have you double-checking your policy fine print. Hear about Chris Yearsley's experience with his Model Y Tesla and the surprise insurance charge he faced after a simple over-the-air update – a cautionary tale that stresses the importance of being aware of how such updates can affect your insurance costs.

Together, we'll dissect the complexities behind insurance policies and software updates, providing you the insights to navigate potential pitfalls. This isn't just about the nuts and bolts of electric cars, but the nuances that could have significant financial repercussions for drivers like you. Whether you're an EV enthusiast or considering making the switch, this episode is packed with invaluable advice to ensure that your electric journey is as cost-effective and hassle-free as possible. Don't miss out on these essential tips that could save you more than just a few pounds down the road.

To watch the video version click:  https://youtu.be/Vc6QTdPuS3g 

To buy a copy of Electric Cars - The Truth Revealed visit grahamhilltraining.com. Buy the current copy and receive the totally updated version in early 2026. If you are interested in sponsoring this podcast or would be interested in working together please visit grahamhilltraining.com/contact

Transcript

Hi, I'm Graham Hill. I'm the author of Electric Cars – The Truth Revealed, which contains all of this information that I'm giving in these podcasts and more. The idea is to get this information out to as many people as we possibly can, because we need people to transition from petrol and diesel to electric, and things are slowing down at the moment, mainly because people haven't got the information they need to feel comfortable transitioning from petrol or diesel to electric. So if you want to know more I would suggest that you get a copy of the book. In the current set of podcasts we’re going through the insurance implications which is just one of about 50 headings in the book. If you want to order the book, go to grahamhilltraining.com and you can buy a copy of the book and download it immediately. You can also sign up for the training course that will be launched later in 2024. If you pre-order it will be sent out as soon as it’s ready. If you order now it'll be a lot cheaper than if you buy it as a stand-alone training course later in the year, which would be a lot more expensive. It will be hundreds of pounds as opposed to just a few pounds if you order it now. As I say, we've been covering off insurance and what you need to look out for when you're insuring your car and the different types of insurance you need to take into account.

Now, the name Chris Yearsley may not mean anything to you, but Chris Yearsley had a Model Y Tesla and, unlike many, he had read his insurance policy. The policy said that if there are any over-the-air updates to the car, that he must let the insurance company know about these updates so that they were aware of the fact that there had been an update and what the update was for. In particular if the updates affected the performance of the car as they may need to adjust the premium. Anyway, he had a notice of updates on his car. They were very minor things that had no effect on the safety or performance of the car. For example Polish was now included in the list of language options when using the touch-screen controller. Chris phoned his insurer = LV and they said, ‘Yeah, that's fine, we know about this’. ‘We'll be charging your account with £94 for the addition’. Chris argued with the insurance company and said, ‘Look, hang on a minute, nothing's happened, all I've got is Polish on my screen and a few minor adjustments to air condition. Whatever it was’.

There were some minor adjustments and additions that certainly didn't affect the performance of the car. Having had words with the insurer they still refused to do anything about it, explaining that they were the rules. So Chris got in touch with Which magazine. . Which in turn got in touch with LV who responded by agreeing to repay the increased premium to Chris and paying a sum for the inconvenience and distress caused which was paid.

They said that they were changing their rules and were no longer asking customers to inform them of any over the air upgrades and updates. Now, this doesn't just apply to electric cars. You need to check if you're driving a petrol or diesel car that's capable of these over-the-air upgrades. However, it's mainly electric cars that are affected. You need to check your policy to see if you need to tell the insurer because this is the point that Which magazine was making in their report that this could still be going on with other insurers. 

If you don't tell the insurance company about any upgrades over the air and there are terms inside your contract insisting that you advise them of any OTA upgrades, there's a very good chance that if you have an accident, they won't pay out on your insurance claim. You need to make sure that you check your insurance policy to see if you are supposed to make the insurance company aware of any updates to the car’s systems or software which you'll always receive notice of. If you have an accident in the car it may be too late so make sure that you have checked out your policy for Over The Air updates as advised by Which magazine. That's the end of this very brief but important podcast. I’ll catch you on the next one.