EVs cost more to insure and repair… for now

Electric car insurance is more expensive than conventional insurance, largely due to the need for specialist parts.  However, repair costs for electrification technologies will improve as OEMs optimise designs, according to a new report due out on Thursday 9^th September. Just one of the many valuable insights delivered from the latest Trend Tracker report.

Due to be launched on World EV Day – a global movement to celebrate and support the transition to EV mobility – Trend Tracker’s second in the series of quarterly reports, ‘EV Readiness’ features a wide-ranging industry study, expert insight and analysis of the latest EV market trends.

Some of the key findings from the report include:

• Electric car insurance is more expensive than conventional insurance.
• The approach of major insurers to electric cars insurance cover is changing.
• Industry best practice when repairing an electric car: focusing mainly on the precautions of Body and Paint technicians when working with this type of vehicle.
• Consumers don’t believe the government will reach the challenging EV targets and there are barriers to switching causing concern
• Government support “Subsidies and incentives will need to be prepared to support consumers through these concerns to meet the ambitious targets of limiting new vehicles sales to EV vehicles only by 2030 and net zero as a country by 2050” said Steve Silverwood, MD ECA Business Energy
• Trend Tracker survey respondents (automotive supply chain) have more concern and risk than optimism but have had good support from OEM’s and Thatcham to adjust.
• Repair costs for electrification technologies will improve as VMs optimise designs.
• Skills gap widens: “There is understandable concern across the industry about the yawning skills gap that needs to be narrowed if the entire value chain is to deal safely and efficiently with emerging risks posed by new technologies,” said Dean Lander, Head of Repair Sector Services at Thatcham Research, in his Foreword in the report.

Paul Sell, Associate Director Industry Insights, said:

“There are many key contributors to this report which is a real eye opener to the various challenges and opportunities the electrification of the car parc is presenting, these include Fix Auto, Vella Group, and Nationwide Vehicle Recovery. Results of an exclusive consumer survey conducted with Consumer Intelligence and our recently conducted industry survey conducted with NBRA and ARC360 to understand the views of businesses in our industry.”

The ‘EV Readiness’ Report is free to subscribers of Trend Tracker and available to purchase for £395+VAT. The EV report will be followed by a focus on Supply Chain Sustainability in the Autumn