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UK Report: Electric vehicle transition to drag up car insurance premiums

A recent article from July 2023 suggests that the uptake of EVs will force a wholesale adaptation of the motor insurance sector. EV insurance claims in the UK are already 25.5% more expensive than ICE cars. Apparently ‘the insurance sector has expressed concerns surrounding the major changes that it will need to implement to handle the ever accelerating transition’. Oh dear. The UK government has mandated that all new cars sold have zero fuel emissions by 2035.

The article was based on a recent government-funded report by Thatcham Research, a UK industry research centre focused on the cost of motor insurance claims. Thatcham notes that the repairability of batteries is a key element in managing the repair demands from EVs. The cost of batteries varies widely and is causing a significant increase in write-offs. Gaps in repair industry skills are challenging safe and timely repair of EVs. 

For more background on how batteries contribute to repair costs, see: DISRUPTION TO THE REPAIR PROCESS – Thatcham

Authorised repairers

Here are links to the authorised repairs in Australia for popular EVs:

Collision Support | Tesla

BYD Approved Panel Repairers (bydautomotive.com.au)

Polestar car servicing network | Polestar AU