12:52 pm, October 3, 2024
Recent research conducted by Warranty Solutions Group (WSG) has revealed the spiralling cost of repairing electric vehicles, with the resulting claims between 30% and 50% higher than for comparable internal combustion engine (ICE) vehicles.
WSG analysed the EV warranty claims for just over just over 800 electric passenger cars between 2023-2024, with results showing that most common issues were with battery charge control modules, costing an average of £1,311.12 to repair, power distribution boxes (£747.65), warning lights (£875.00), and shock absorbers (£588.86).
John Colinswood, CEO of WSG commented: “Not all repair shops are equipped to handle EVs, and specialised knowledge is needed to safely work on high-voltage electrical systems. This drives up labour costs, as repairs often require trained professionals, sometimes through the manufacturer or specialised dealers.”
In addition to the more costly repairs, WSG also highlights a study by Cap HPI, which compared the service, maintenance, and repair (SMR) costs quoted by manufacturers for the latest EV models against their ICE counterparts.
Looking at costs over a typical three-year ownership programme, it found that EV affordability wasn’t particularly favourable. A case in point is the manufacturer-quoted cost for a three-year maintenance plan for the electric VW ID3 hatchback, which equated to £1,050 (including servicing, MOTs, tyres, brakes, and other maintenance). In contrast, a comparable Golf diesel costs £615 over the same period.
Colinswood added: “Unlike ICE vehicles, which can be serviced by a wide range of independent mechanics, EVs rely more on manufacturer-certified technicians and parts, limiting competition in repair services and keeping prices high. EVs also depend heavily on sophisticated electronics and software, making diagnostics and repairs more complex and expensive than with ICE vehicles.”
Warranty Solutions Group’s CEO went on to explain that insurers and brokers need to understand the risks associated with alternative fuel vehicles (AFVs) and develop appropriate premiums for this emerging market.
“Data already shows longer repair times due to safety requirements and higher parts-to-labour ratios because manufacturers often mandate part replacements, especially in comparison to ICE vehicles.
“Insurers will need to consider these factors when setting premiums. As more data becomes available, it will provide greater insights into these differences,” he said.
