Clear Environmental Benefits Could Drive Green EV Insurance Adoption - Space and astronomy

A new study from Sophia University reveals that while government policies and insurer claims act as green signals, they do not directly drive purchase intentions. Instead, customers are more likely to buy green EV insurance when they hold a positive attitude toward the policy, trust its environmental claims, and perceive clear value in specific benefits like eco-driving incentives and battery support.

For many consumers, purchasing an electric vehicle (EV) represents an environmentally conscious decision, yet sustainability extends beyond the showroom into daily ownership choices. These ongoing decisions include energy-efficient driving habits, environmentally responsible repairs, and battery support. While green EV insurance can facilitate these practices, customers often struggle to verify insurers' environmental claims before purchasing a policy, making it difficult to assess genuine environmental value.

Researchers from Sophia University in Japan investigated customer attitudes toward green EV insurance in China, the world's largest EV market where new energy vehicle ownership reached 36.89 million by June 2025. Led by Professor Xuepeng Qian of the Graduate School of Global Environmental Studies, and co-authored by graduate students Yimeng Zheng and Zhao Chen, the study found that purchase likelihood increases when customers view policies and their benefits positively. The findings were published in the Journal of Retailing and Consumer Services.

Professor Qian noted that sustainable consumption must extend to decisions regarding driving, repairs, and insurance. Since consumers cannot easily verify the environmental value of insurance prior to purchase, the team sought to understand how individuals interpret and trust environmental claims. The researchers defined government policies promoting green insurance and companies' environmental assertions collectively as "green signals." They examined how these signals influence customer attitudes, trust in claims, perceived value, subjective norms regarding social encouragement, and perceived behavioral control.

To analyze these relationships, the team conducted an online survey of 758 EV owners in China. Participants rated statements concerning green signals, their perceptions of green insurance, and their purchase intentions on a five-point scale. The analysis revealed that green signals were not significantly associated with purchase intention through a direct pathway. Instead, intentions were stronger when customers viewed the insurance positively, trusted its claims, believed benefits justified the cost, felt encouraged by others, and felt capable of accessing the product. Among these factors, a positive attitude toward the insurance exerted the strongest influence on purchase intentions.

However, the study identified distinct consumer segments. Price-conscious customers responded more strongly to green signals, suggesting this information plays a greater role in shaping their decisions. Conversely, customers with little concern about climate change showed minimal response to these signals. The findings indicate that insurers should support environmental claims with clear evidence to help customers understand specific benefits.

Professor Qian emphasized that rather than simply claiming to be environmentally friendly, insurers should highlight concrete advantages such as incentives for eco-friendly driving, repairs that avoid unnecessary replacements, the use of remanufactured parts, battery support, and reductions in carbon emissions and resource consumption. The researchers also suggested that establishing common standards for green repairs and environmental reporting would assist customers in comparing the benefits of different insurance products.

By connecting EV ownership with repeated consumer decisions, green EV insurance can encourage sustainable choices long after the initial vehicle purchase. Making these environmental benefits clear and verifiable is essential to fostering continued sustainability among EV owners.

Sources: Phys.org.