Insurers criticise high repair costs for electric cars
According to a recent GDV study, the average claim is up to 25 percent higher than for comparable combustion engines. Insurers fear negative consequences for the mobility transition.
High expenses for replacing traction batteries, long downtimes and poor diagnostic and repair options are driving up repair costs for electric cars, according to motor insurers. "Damage to an electric car from an accident costs significantly more than damage to a comparable car with a combustion engine", said Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV). According to a recent GDV study, up to 20 percent fewer claims are reported in the fully comprehensive insurance segment for electric cars than for comparable combustion engines, but each claim costs up to 25 percent more on average.
How car manufacturers could reduce costs
"Garages, towing companies, fire departments and experts need more support when dealing with severely damaged electric cars", said Asmussen. The GDV is calling on manufacturers to protect batteries as well as possible against damage caused by accidents right from the vehicle design stage and to provide meaningful diagnostic data on the condition of the battery after an accident. The current uncertainty is leading to high costs: "After accidents, traction batteries are often completely replaced. In addition, the cars are stored in quarantine for a very long time or even submerged in water in extinguishing containers, leading to a total loss", Asmussen said. "What we need instead are precise criteria for dealing with electric cars that have been involved in accidents and financially sustainable instructions for repairing or partially replacing damaged batteries."
Otherwise, insurers fear negative consequences for the mobility transition: "In view of the ecological challenge of climate change, the fact that we as a society will no longer be using fossil fuels to power our vehicles in the future is and remains the only right way forward", said the GDV CEO. But if repair costs do not fall, they will jeopardise the acceptance of electric cars over the long term", Asmussen said. Both factors - the lower number of accident claims, but also the higher costs - are taken into account by car insurers when calculating the individual type classes of the respective model. As a result, high repair costs can also lead to higher insurance premiums.
Background: The GDV study
For the current GDV study, 38 pairs of electric car and combustion engine models were formed that were as similar as possible. This was very easy in some cases because there are models of the same design, for example the electric Smart for the Smart or the electric Golf VII for the Golf VII. It was more difficult for other models. In such cases, GDV experts found suitable peer vehicles. The frequency and amount of claims were then evaluated over a period of three years for the model series in question.
You can find the statistical tables for this report on our German page.
