Auto Hacking Coverage for Commercial Vehicles

Telematics and modern automobiles and trucks work together to improve fuel efficiency, reduce delays, and make driving safer. However, linked cars are also drawing attention to cyber responsibility and cybersecurity. Due to their highly automated systems that require maintenance and upgrades, electric vehicles (EVs) are susceptible to hackers. Additionally, a number of new loss liability areas, such as vehicle bricking, which may result in a vehicle being completely lost, have been made public by software-defined cars.

The 2023 Global Automotive Cybersecurity Report from Upstream states that in 2022:

Attacks against application programming interfaces (API) increased by 380%.
At 35%, telematics and application servers (apps) were the most common auto-attack vectors.
At 18%, remote keyless entry devices were the second most common assault method.
Ransomware and charging management attacks (such as interfering with the flow of electric charges) exploited EV charging stations.
Discussions concerning contemporary cars and their software components on the dark web rose by 35%.

coverage for the costs of car hacking
Your commercial vehicle insurance policy might include coverage for auto hacking. At the moment, only passenger, light, and medium vehicles are eligible. However, even if your car is a heavier-duty EV, ask your agent about this new risk area. They may have different ideas.)

Any malicious code, virus, or other harmful code intended to access, modify, corrupt, damage, erase, destroy, interfere, encrypt, exploit, utilize, or block or restrict access to or use of any portion of the vehicle is considered an auto hacking incident, according to auto hacking laws. Denial-of-service attacks that interfere with, stop, or restrict your vehicle’s use or access fall under this category.

Damages immediately caused by a hacking incidence are covered under auto hacking insurance:

covers the price of figuring out whether a hack has happened or is happening.
covers the price of restoring the computer system to its pre-attack state.
covers the price of installing security or software upgrades that the manufacturer requires.
covers the price of replacing or restoring the vehicle’s operating data.
pays for short-term transportation costs while your car is being fixed (limits apply).
reimburses ransom payments (this is an additional expense) and covers the cost of towing your car to a service or repair facility if it is inoperable or dangerous to drive.

A brief note on ransom coverage

If it’s not on your declarations page, don’t think you’re protected for reimbursement; ransom payment coverage is an add-on to auto hacking coverage. Reimbursement for interest on bank loans you obtain in response to ransom requests may be included in ransom payments. Notifying the insurance company is one of the many procedures you must take in order to receive reimbursement.

When a hack results in harm, liability, or property damage
Comprehensive car or cyber insurance does not include vehicle hacking coverage. It’s an extra line of defense for your car. It excludes:

Your car’s damage
Physical harm or medical costs
Damage to property
Liability, bodily injury, and property damage claims would all be covered by your commercial car coverage.