Key facts
- EVs cost 30% more to repair than petrol or diesel cars on average.
- Repairing EVs takes 14% longer than conventional vehicles.
- EV insurance premiums are 10-25% higher than for petrol or diesel cars.
- Integrated components and expensive battery replacements contribute to higher repair costs.
- Thatcham Research is working with the insurance industry to address rising EV repair costs.
Electric vehicles (EVs) are facing higher insurance premiums due to significantly more expensive and time-consuming repairs compared to traditional petrol or diesel cars. Crash tests reveal that seemingly minor impacts can cause substantial hidden damage to integrated EV components, such as charging ports and battery systems, often leading insurers to deem the vehicles a total loss.
Thatcham Research, an organization representing the insurance industry, is conducting tests to understand these repair costs. They report that EVs are, on average, 30% more expensive to repair and take 14% longer to fix. This translates into insurance premiums that can be 10-25% higher. Engineers explain that the design of many EVs, with components integrated to save weight, means that individual parts cannot be easily replaced, necessitating the replacement of entire, costly systems.
For instance, damage to the protective casing of an EV battery, which constitutes about 40% of the vehicle's value, can result in the entire battery needing replacement, often making the car uneconomical to repair. The rise of Chinese EV manufacturers also presents challenges, as their lower labor costs may not align with the need for simpler, more cost-effective repairs in markets like the UK. Furthermore, a shortage of specialized parts and technicians for EVs can extend workshop times, increasing costs for insurers providing loaner vehicles.
However, there are signs of improvement. Thatcham Research is developing recommendations for manufacturers to simplify repairs and reduce costs, such as relocating vulnerable components or redesigning battery casings for easier replacement. Automakers like Renault are also investigating ways to make battery repairs more feasible and affordable while adhering to safety standards. Recent EV models show a narrowing gap in repair costs, with averages now only 18% higher than their conventional counterparts, suggesting that insurance premiums may eventually decrease.