Driver warning as EV insurance costs could be set to rise – can you afford pricey electric premiums?
Electric car insurance premiums are expected to increase due to repair costs and battery damage.
A comparison showed that electric vehicles (EVs) were 25.5 percent more expensive than petrol and diesel models.
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Repairing the damage took 14 percent longer than with conventional engines.
The excessive cost of repairing batteries is causing many EVs to be written off.
Even though electric vehicles featured the latest safety technologies, they were still involved in accidents that led to insurance claims.
Thatcham Research, a company specializing in risk analysis in the automotive sector, has now published a report warning that premiums for electric vehicle owners will rise.
The report also noted that traffic accidents involving an electric car are often “catastrophic for the vehicle”.
The report found that repairing electric vehicles after a serious accident is often too expensive, forcing the owner to write them off.
According to the report, damage to the car’s high-value voltage pack was often the leading cause of an EV’s write-off.
The battery pack in electric vehicles accounts for a significant percentage of the original vehicle value.
A battery in a premium electric vehicle was worth around £29,500. For budget EVs, the battery was worth around £14,500.
Jonathan Fong, senior policy adviser at the Association of British Insurers, said online mail : “As with any new technology, there will be factors that need to be considered, including a variety of considerations in insurance and vehicle repair supply chains.”
“We are calling for more investment in the training and reskilling of automotive technicians to help build a robust and independent repair network that can cope with an increasingly electrified fleet.”
Chris Payne, Head of Networks and Engineering at insurer LV=, also responded to the Thatcham Research report: “As one of the largest insurers in the UK, we are working hard to find solutions to some of the current challenges around electric vehicles.”
“This includes upskilling the next generation of technicians as well as redesigning and developing our new and existing repair locations.”
“As an industry, we also need to ensure that there is collaboration between insurers, automakers, salvage companies, repairers and throughout the supply chain.”
“This will ultimately help us work towards a common goal that will enable the latest vehicle technology to be repaired safely and efficiently with the right skills, tools and equipment to ensure we meet the demands of the future.”