Electric Vehicle Insurance Premiums See 50% Increase as Repair Costs Escalate
The average cost of insuring an electric vehicle (EV) has risen by 50% over the last 12 months, now averaging £1,600. This stark increase contrasts sharply with petrol car premiums, which saw a 29% rise to an average of £995 in the same period, according to Confused.com data.
This disparity is primarily attributed to the higher expense and complexity of EV repairs. Electric cars often incorporate specialised parts, such as intricate sensors and high-voltage battery packs, which require expert handling. The limited number of garages equipped with the necessary tools and trained technicians to service EVs further inflates repair costs and timescales.
The cost of battery replacement is a significant factor. A new battery can account for a substantial portion of the vehicle's value, making write-offs more frequent for even minor damage. For instance, a small collision could render an EV uneconomical to repair if the battery sustains damage, even if structurally the vehicle remains sound.
Despite government targets for phasing out petrol and diesel car sales by 2035, the escalating insurance costs present a considerable hurdle to wider EV adoption. Insurers are now actively seeking solutions, including investing in training for mechanics and developing more efficient repair processes. The industry is also exploring ways to reduce the cost of spare parts and improve battery repair techniques rather than outright replacement.
