Autoserve
Why Do Electric Cars Cost More to Insure?
Electric cars can be cheaper to run than petrol or diesel cars. They have fewer moving parts, no engine oil to change and can cost less to fuel.
So why can they sometimes cost more to insure?
The answer often comes down to what happens when an electric car needs repairing after an accident.
Electric cars can cost more to repair
Electric vehicles use different technology from petrol and diesel cars.
Their batteries, electric motors, charging systems and other components can be expensive to repair or replace.
Even a relatively minor accident can sometimes damage parts that are costly to fix.
Repairers also need specialist equipment and training to work safely on high-voltage electric vehicles.
All of this can increase the cost of an insurance claim.
And when insurers pay more to settle claims, those costs can feed into insurance premiums.
The battery is a big part of the problem
The battery is one of the most valuable components in an electric car.
It can also be one of the most difficult to assess after an accident.
A damaged battery does not automatically mean the whole battery needs replacing. However, repair options have not always been widely available.
In some cases, replacing the entire battery can cost thousands of pounds.
That can make an otherwise repairable car uneconomical to fix.
When the cost of repairing a vehicle becomes too high compared with its value, an insurer may decide to write it off.
Why can repairs take longer?
Electric cars require specialist knowledge and equipment.
Not every repair centre is equipped to work on high-voltage systems. Technicians also need the right training to safely inspect and repair them.
There can also be delays in getting specialist parts.
A longer repair means the vehicle can spend more time off the road. If a replacement vehicle is needed while the repair takes place, that adds another cost to the claim.
But things are changing
The good news is that the industry is learning how to repair electric vehicles more efficiently.
As more EVs appear on UK roads, manufacturers, repairers and insurers are gaining more experience.
Repair technology is developing too.
Instead of replacing an entire battery, there is growing interest in repairing or replacing individual battery components where it is safe and technically possible.
Thatcham Research says EV repair costs have already fallen by 10.7% as the industry gains experience and develops better repair processes.
It is also calling for changes that could make EVs easier and cheaper to repair.
What is being done to reduce costs?
One of the biggest areas of focus is battery repair.
The industry is looking at ways to assess damaged batteries more accurately and repair them where possible.
This could prevent vehicles being written off simply because replacing an entire battery is too expensive.
Thatcham Research has also developed an Electric Vehicle Blueprint. It sets out changes aimed at improving EV repairability, reducing unnecessary write-offs and helping make insurance more affordable.
Better access to repair information, specialist training and battery repair facilities could all make a difference.
Will electric cars become cheaper to insure?
There is no guarantee that every electric car will become cheaper to insure.
Insurance premiums depend on many factors, including the vehicle, the driver, location, claims history and repair costs.
However, as EV technology becomes more established, repairers gain experience and more cost-effective repair methods become available, some of the additional costs associated with repairing electric cars could reduce.
That could help put downward pressure on insurance costs over time.
Electric cars are still evolving
Electric vehicles have changed rapidly over the last few years.
The way we repair them is changing too.
The challenge is not simply making electric cars reliable and efficient. It is also making sure they can be repaired safely and economically when something goes wrong.
As battery repair technology improves and more technicians become trained to work on EVs, the cost of repairing electric cars could continue to fall.
So, while an electric car may cost more to insure today, that does not necessarily mean it will always be that way.
As the technology develops, so does the way we repair it.
So why can they sometimes cost more to insure?
The answer often comes down to what happens when an electric car needs repairing after an accident.
Electric cars can cost more to repair
Electric vehicles use different technology from petrol and diesel cars.
Their batteries, electric motors, charging systems and other components can be expensive to repair or replace.
Even a relatively minor accident can sometimes damage parts that are costly to fix.
Repairers also need specialist equipment and training to work safely on high-voltage electric vehicles.
All of this can increase the cost of an insurance claim.
And when insurers pay more to settle claims, those costs can feed into insurance premiums.
The battery is a big part of the problem
The battery is one of the most valuable components in an electric car.
It can also be one of the most difficult to assess after an accident.
A damaged battery does not automatically mean the whole battery needs replacing. However, repair options have not always been widely available.
In some cases, replacing the entire battery can cost thousands of pounds.
That can make an otherwise repairable car uneconomical to fix.
When the cost of repairing a vehicle becomes too high compared with its value, an insurer may decide to write it off.
Why can repairs take longer?
Electric cars require specialist knowledge and equipment.
Not every repair centre is equipped to work on high-voltage systems. Technicians also need the right training to safely inspect and repair them.
There can also be delays in getting specialist parts.
A longer repair means the vehicle can spend more time off the road. If a replacement vehicle is needed while the repair takes place, that adds another cost to the claim.
But things are changing
The good news is that the industry is learning how to repair electric vehicles more efficiently.
As more EVs appear on UK roads, manufacturers, repairers and insurers are gaining more experience.
Repair technology is developing too.
Instead of replacing an entire battery, there is growing interest in repairing or replacing individual battery components where it is safe and technically possible.
Thatcham Research says EV repair costs have already fallen by 10.7% as the industry gains experience and develops better repair processes.
It is also calling for changes that could make EVs easier and cheaper to repair.
What is being done to reduce costs?
One of the biggest areas of focus is battery repair.
The industry is looking at ways to assess damaged batteries more accurately and repair them where possible.
This could prevent vehicles being written off simply because replacing an entire battery is too expensive.
Thatcham Research has also developed an Electric Vehicle Blueprint. It sets out changes aimed at improving EV repairability, reducing unnecessary write-offs and helping make insurance more affordable.
Better access to repair information, specialist training and battery repair facilities could all make a difference.
Will electric cars become cheaper to insure?
There is no guarantee that every electric car will become cheaper to insure.
Insurance premiums depend on many factors, including the vehicle, the driver, location, claims history and repair costs.
However, as EV technology becomes more established, repairers gain experience and more cost-effective repair methods become available, some of the additional costs associated with repairing electric cars could reduce.
That could help put downward pressure on insurance costs over time.
Electric cars are still evolving
Electric vehicles have changed rapidly over the last few years.
The way we repair them is changing too.
The challenge is not simply making electric cars reliable and efficient. It is also making sure they can be repaired safely and economically when something goes wrong.
As battery repair technology improves and more technicians become trained to work on EVs, the cost of repairing electric cars could continue to fall.
So, while an electric car may cost more to insure today, that does not necessarily mean it will always be that way.
As the technology develops, so does the way we repair it.
