Electric vehicles (EVs) are becoming increasingly popular, yet they cost significantly more to insure than traditional petrol or diesel cars. According to Thatcham Research, on average, EV repairs are 30% more expensive, and the process takes 14% longer. This discrepancy is crucial as EV sales surged to almost one in three new cars sold in the UK in June 2026, highlighting the need for solutions to reduce insurance premiums.
Understanding the high insurance costs for electric vehicles
The primary reason for the elevated insurance costs of EVs lies in their design. Many electric vehicles prioritize weight reduction, resulting in components that are often glued together rather than bolted. This design choice, while beneficial for performance, complicates repairs. Senior test engineer Sean Hoad explains that in the event of a minor accident, like the one involving a Dacia Spring, the damage can be extensive, requiring complete system replacements that can cost upwards of £4,000.
As the insurance costs for EVs can be 10-25% higher than their petrol counterparts, potential buyers are often deterred. Steve Fowler, co-founder of Carblah, emphasizes, "It’s absolutely crucial electric vehicles become cheaper to insure." This sentiment is echoed by industry experts who believe that simplifying repairs could lead to lower premiums and increased EV adoption.
Challenges in EV repair and insurance
Another factor contributing to high insurance costs is the value of EV components. For instance, the battery alone accounts for nearly 40% of an electric vehicle's total value. Thus, any damage that requires battery replacement risks writing off the entire vehicle due to repair costs. Principal advanced technologies engineer Dan Harrowell notes, "Damage to the battery is much less common, but the sheer value of it means any damage at all, if it involves a replacement, risks writing off the vehicle."
