LB Forsikring aims to be Denmark’s preferred insurance company for electric cars

26 May 2021

Closes up Human hand is holding Electric Car Charging connect to Electric car

Danish ICMIF member LB Forsikring is working hard to make it easier for its members to choose an electric car with a new electric car insurance cover. The insurance provides a 35% price reduction on small and medium-sized electric cars and completely new and improved terms for electric car owners.

For any of LB Forsikring’s 405,000 members, who may be thinking of buying an electric car, then there is now good news. Denmark’s largest member-owned insurance company has put great effort into making the option of buying an electric car as attractive as possible for their members.

“We want to be the electric car insurance company. The company with a sharp price and the best terms. This sends a clear signal about our new prices and terms. We believe that by providing good conditions we can help give our members a push in the direction of a more climate-friendly car. For electric cars is very much the future,” says Chief Commercial Officer Steen Holse Andersen.

The new terms mean extra coverage on all electric cars and a reduction in the insurance premium of 35% on all electric cars up to 260 hp. A limit that has been chosen quite deliberately, as the price reduction must hit where the members are, Steen Holse Andersen explains.

“Our members are ordinary Danes with ordinary jobs as nurses, teachers and educators. When they buy an electric car, it is typically in the middle class. Therefore, we have lowered our prices on mid-range and smaller electric cars, and generally made our terms some of the best in Denmark. Surveys show that 6 out of 10 Danes are thinking of buying a rechargeable car, and our task is to support those of our members who want to make a greener car choice wherever they are,” he says.

The new terms mean extra measures such as coverage up to DKK 30,000 on short trips and sudden damage to the car’s battery for the first eight years. No deductible for vandalism, theft or sudden damage to charging box or charging cables, and roadside assistance if drivers run out of power. This applies to all types of electric cars – regardless of size.

The transition should be easier

At the end of 2020, electric and plug-in hybrid cars accounted for just over 10% of all newly purchased cars, according to Statistics Denmark, but this is a rapidly developing market, and LB Forsikring wants to make the journey towards fossil-free vehicles easier for members. Therefore, there will also be a price reduction of 20% on hybrid cars, although Steen Holse Andersen hopes more people will take the leap directly to electric cars when they are ready to purchase their next car.

“There is no doubt that environmentally, the pure electric car is the best choice, but we see Plug-in hybrid as a technological stepping board that helps to mature the movement towards an electrified car fleet. The understanding that you can charge your car via a cable plays a role. Therefore, there has also been a price reduction on hybrid cars,” says Steen Holse Andersen.

He sees LB Forsikring’s new investment in electric cars as a completely natural extension of the company’s purpose: “LB Forsikring is built on a desire to take responsibility and take care of each other. This applies both to the members and the world around us. We do our utmost every day to give our members the best coverage on all our insurances, whether it is house, car, accident or one of our other insurances. Electric cars are just the next natural step, where we can also give our members the service and terms they deserve. We can easily imagine that in the foreseeable future there will be a relevant debate on whether there will be any newly registered fossil cars at all to insure, as the development goes, and we must be prepared to help the members with that,” he says.

For member-only strategic content on the cooperative/mutual insurance sector, ICMIF members have exclusive access to a range of online resources through the ICMIF Knowledge Hub.

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