Psychological and Demographic Drivers of Embedded EV Insurance Adoption in Taiwan, China

The rapid diffusion of electric vehicles (EVs) is reshaping mobility markets and creating new opportunities for embedded financial services. This study examines consumer acceptance of embedded EV insurance, which refers to coverage bundled directly at the point of vehicle sale in Taiwan, China. Using survey data from 400 licensed drivers, we analyze how demographic factors and five psychological drivers—perceived savings, convenience, trust, expected satisfaction, and fairness—shape the likelihood of choosing embedded insurance over traditional stand-alone policies. Welch’s t-tests show that younger drivers perceive greater savings and convenience, while older drivers express stronger fairness concerns. Logistic regression results indicate that convenience (OR = 2.05) and perceived savings (OR = 1.76) substantially increase adoption likelihood, whereas fairness concerns reduce it (OR = 0.71). Theoretically, this study advances consumer behavior research by demonstrating how functional value perceptions (convenience and savings) and fairness evaluations jointly influence decisions in digitally mediated insurance contexts. It also contributes to embedded finance theory by revealing how insurance embedded within EV purchasing ecosystems reshapes consumer decision processes and alters traditional insurer–consumer relationships. These findings offer strategic implications for automakers, insurers, and policymakers designing consumer-centric embedded financial products in emerging mobility markets.