Electric vehicle (EV) insurance premiums run 10-25% higher than for petrol or diesel cars, driven by repair costs that are on average 30% greater and take 14% longer to complete, according to Thatcham Research, which works on behalf of the insurance industry.
The Hidden Cost of Minor Collisions
In a crash test laboratory outside Newbury, Thatcham Research replicated a 6mph car-park prang using a Dacia Spring EV. While the visible damage was slight, beneath the bonnet the high-voltage charging port was badly broken, along with attached components. Senior test engineer Sean Hoad explained: "This is all one big unit, meaning we can't just replace the front charge port. We have to replace the charger itself, the inverter, and some of the cabling." The repair estimate came to about £4,000, and with other damage, Hoad added: "It's more than likely this car would be written off."
Insurance Premiums: 10-25% Higher
The higher repair costs feed directly into insurance pricing. Thatcham Research data show EVs cost 30% more to repair than conventional models and take 14% longer. Premiums reflect this, varying by make and model from 10% to 25% above petrol or diesel equivalents.
| Metric | EV vs. Petrol/Diesel |
|---|---|
| Repair cost | 30% higher |
| Repair time | 14% longer |
| Insurance premium | 10-25% higher |
Design Choices Drive Up Costs
Dan Harrowell, principal advanced technologies engineer at Thatcham, pointed to design integration as the root cause. "To save some weight, there's a lot of integration of components. They're glued together, rather than using fixings, which is great to reduce weight, but not great for repair, because you have to replace whole systems rather than individual components." This means minor damage can render entire subsystems unrepairable.
Industry Pressure for Cheaper Insurance
The cost of insurance is seen as a barrier to EV adoption. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), EV sales surged to make up almost one in every three new cars sold in the UK in June. Ian Plummer, chief customer officer at car selling website Autotrader, said rising EV demand is "driven by intensifying competition and rising consumer interest in plug-in cars," but noted "the wider context remains fragile, with ongoing uncertainty around policy, incentives, and wider external pressures."
Steve Fowler, co-founder of car review website Carblah, stressed: "It's absolutely crucial electric vehicles become cheaper to insure." He added: "They are expensive – though not as expensive as some people might think – but by making them easier to repair and cheaper to insure, more people will buy them."
What's Being Done?
Thatcham Research's tests are designed to help manufacturers understand the repair implications of their designs. By highlighting the cost consequences of integrated components and the tendency for repairs to exceed vehicle value, the organisation aims to push for design changes that reduce repair costs and insurance premiums. The Dacia Spring example shows that even low-speed collisions can lead to total write-offs, a pattern the industry hopes to address through better repairability.
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