EV Repair Costs & Your UK Insurance

As an FCA-authorised expert broker that has helped arrange over 800,000 policies, WeCovr provides this essential guide to the challenges of EV repair costs and their impact on your motor insurance in the UK. We explore why premiums are rising and what you can do to protect your policy.

Shocking UK EV Repair Costs: How the Rising Price of Electric Vehicle Damage Is Driving Up Premiums and What EV Owners Can Do To Protect Their Policy

The electric vehicle revolution is well and truly underway on Britain's roads. Drivers are embracing the lower running costs, silent operation, and environmental benefits. Yet, a significant challenge is emerging from behind the scenes, one that is beginning to hit EV owners squarely in the wallet: the staggering cost of repairs.

When an electric car is damaged, even in what appears to be a minor incident, the subsequent repair bill can be eye-wateringly high. According to recent data from the Association of British Insurers (ABI), claims costs for EV repairs are, on average, 25-30% higher than for their petrol or diesel counterparts. Furthermore, repairs are taking significantly longer, creating a perfect storm that is forcing car insurance providers to increase premiums for EV drivers across the UK.

This article delves into the reasons behind these high costs, explains their direct impact on your insurance policy, and provides actionable advice for EV owners and fleet managers to mitigate the financial shock.

Why Are Electric Vehicle Repairs So Expensive?

The high-tech nature of EVs is both their greatest strength and, when things go wrong, their most significant financial liability. Several key factors combine to inflate repair costs far beyond what drivers of traditional internal combustion engine (ICE) vehicles are used to.

The Battery Pack: The Heart of the Cost

The lithium-ion battery pack is the single most expensive component in an EV, often accounting for up to 40% of the vehicle's total value. Unlike an engine, which is a complex collection of replaceable parts, a battery pack is often a single, sealed unit.

• Vulnerability: While protected, the battery is situated in the vehicle's floorpan. Damage to the undercarriage from kerbs, potholes, or collision debris can compromise the battery's integrity.
• Minor Damage, Major Consequences: Even a small dent or crack in the battery's protective casing can be enough for an insurer to declare the entire vehicle a write-off. Manufacturers often prohibit repairs to the pack itself, citing safety risks like thermal runaway (fire). This means a £50,000 car could be written off due to damage to a component that might otherwise be a simple fix.
• Replacement Cost: If a replacement is feasible, the cost of a new battery pack can run from £10,000 to over £25,000, depending on the model. This cost alone often makes the repair economically unviable for the insurer.

Specialised Technicians and Equipment

You cannot take a damaged EV to just any local garage. Working on high-voltage systems requires specific training, qualifications, and safety protocols to prevent electrocution.

• The Skills Gap: The Institute of the Motor Industry (IMI) has repeatedly warned of a "skills cliff edge" in the UK. As of early 2025, it is estimated that only around 20% of vehicle technicians in the UK are qualified to work safely on EVs. This shortage of expertise creates a bottleneck, driving up labour rates at the few garages that are certified.
• Specialised Tooling: EV repair centres must invest heavily in insulated tools, diagnostic software specific to each manufacturer, and dedicated bays that can safely handle de-energised high-voltage components. These overheads are inevitably passed on to the customer, and by extension, the insurer.

Advanced Driver-Assistance Systems (ADAS)

Modern vehicles, especially EVs, are packed with sophisticated sensors, cameras, radar, and lidar that form the ADAS suite. These systems control everything from adaptive cruise control to automatic emergency braking.

• The Recalibration Minefield: A simple cracked windscreen or a minor bumper scuff is no longer a straightforward repair. If a windscreen houses a camera or a bumper contains parking sensors, the entire ADAS system must be professionally recalibrated after the part is replaced.
• Costly Precision: This recalibration process is complex, time-consuming, and requires a workshop with a perfectly level floor and expensive calibration rigs. A windscreen replacement that might cost £300 on an older car can easily exceed £1,200 on an EV with advanced ADAS features.

Supply Chain Bottlenecks and Parts Availability

The global supply chain for EV-specific components is less mature than that for traditional vehicles.

• Limited Suppliers: Many critical parts, from battery modules to control units, are sourced from a small number of overseas manufacturers. Any disruption can lead to long delays.
• Longer Wait Times: It is not uncommon for an EV to be off the road for weeks or even months waiting for a specific part. This not only frustrates the owner but also dramatically increases the insurer's costs, as they are often paying for a courtesy car for the entire duration.

How High Repair Costs Are Driving Up Your Insurance Premiums

The fundamental principle of insurance is pooling risk. Insurers calculate premiums based on the predicted frequency and cost of claims for a particular group. For EVs, both metrics are trending in the wrong direction.

The Insurer's Risk Calculation

When an insurer provides a quote, their algorithm assesses dozens of risk factors. The high repair costs of EVs directly inflate the "cost of claim" variable.

1. Higher Repair Bills: As we've seen, the average repair cost is significantly higher. This means for every claim, the insurer's payout is larger.
2. Increased Write-Off Rate: The "all or nothing" nature of battery damage means more vehicles are being written off. The insurer must then pay out the vehicle's current market value, a substantial sum.
3. Extended Claim Duration: Longer repair times due to parts and technician shortages mean the insurer pays for a hire car for longer. This "add-on" cost can sometimes run into thousands of pounds, turning a moderate claim into a major one.

This combination of factors forces insurers to charge higher premiums for EVs to ensure their pool of funds can cover the anticipated future claims.

The Impact on Your No-Claims Bonus (NCB)

A No-Claims Bonus or Discount (NCB/NCD) is one of the most effective ways to reduce your motor policy premium. For every year you drive without making a claim, you earn a discount, often up to 60-70% after five or more years.

However, a single fault claim for an expensive EV repair can have a devastating impact. Not only will you lose a significant portion (or all) of your discount, but your base premium will also likely increase at renewal due to the claim, resulting in a painful double hit.

Understanding Your Motor Insurance Policy: A UK Legal Requirement

In the UK, it is a legal offence to use or keep a vehicle on a public road without a valid motor insurance policy. The Road Traffic Act 1988 mandates that all drivers must have, at a minimum, Third-Party Only cover. Understanding the different levels is crucial, especially for an EV owner.

Levels of Cover Explained

1. Third-Party Only (TPO): This is the most basic level of cover legally required. It covers injury or damage you cause to other people, their vehicles, or their property. It provides no cover whatsoever for damage to your own vehicle. For an expensive EV, this level of cover is entirely inadequate.
2. Third-Party, Fire and Theft (TPFT): This includes everything from TPO, but adds cover for your own vehicle if it is stolen or damaged by fire. It still does not cover repair costs if you are involved in an accident that was deemed your fault.
3. Comprehensive: This is the highest level of cover. It includes everything in TPFT but also covers damage to your own vehicle, regardless of who was at fault in an accident. For any EV owner, Comprehensive cover is essential. It is the only policy level that will pay out for those costly repairs or a write-off if the battery is damaged.

Business and Fleet Insurance Obligations

For businesses, the rules are just as strict. If you or your employees use vehicles for business purposes—whether it's a single van or a large fleet of company cars—you need appropriate business or fleet insurance. Standard personal car insurance will not cover commercial use, and failing to have the correct policy can invalidate your cover and lead to severe legal penalties. WeCovr are FCA-authorised experts in arranging comprehensive fleet and business vehicle policies tailored to the unique risks of commercial operations, including those with EVs.

Key Insurance Terms EV Owners Must Understand

Navigating an insurance policy document can be confusing. Here are the key terms you need to grasp to make informed decisions about your cover.

The Policy Excess

The excess is the amount of money you must contribute towards any claim you make. It is typically made up of two parts:

• Compulsory Excess: This is a fixed amount set by the insurer that you cannot change. It is often higher for high-performance or high-value vehicles like EVs.
• Voluntary Excess: This is an amount you can choose to add on top of the compulsory excess. Agreeing to a higher voluntary excess tells the insurer you are willing to take on more of the initial financial risk, which can often lower your overall premium.

EV Owner's Tip: Be very careful when setting your voluntary excess. While a £750 excess might seem like a good way to save £100 on your premium, you must be sure you can afford to pay that amount if you need to make a claim.

Optional Extras: Are They Worth It for EV Drivers?

Standard policies can be enhanced with optional extras. For EV drivers, some of these are more valuable than for owners of traditional cars.

• Courtesy Car: This is vital. Given the long repair times for EVs, you could be without your car for months. Check the policy wording carefully. Does it guarantee a courtesy car? Is it for a limited period (e.g., 14 days)? Crucially, will they provide a like-for-like EV replacement, or will you be given a small petrol car?
• Breakdown Cover: Ensure your breakdown policy has specific EV cover. This should include recovery if you run out of charge and transportation to a specialist charger or garage, not just the nearest one.
• Legal Expenses Cover: This covers the cost of legal action to recover uninsured losses after an accident that wasn't your fault, such as your policy excess, loss of earnings, or personal injury compensation.
• Protected No-Claims Bonus: For an additional fee, you can "protect" your NCB. This usually allows you to make one or two fault claims within a set period without your discount level being reduced. Given the high probability of an EV claim being expensive, this is a very worthwhile consideration.

What Can EV Owners Do to Protect Their Policy and Lower Costs?

While the market factors are challenging, there are numerous proactive steps you can take to find the best car insurance provider for your needs and keep your premiums as low as possible.

Proactive Steps to Reduce Your Premium

1. Shop Around with an Expert Broker: The single most effective action is to compare the market. Don't just auto-renew. Use an independent, FCA-authorised broker like WeCovr. We have access to a wide panel of insurers, including specialists who understand the EV market and have tailored policies. Our expertise can help you find cover that properly protects your vehicle without costing the earth, at no extra cost to you.
2. Optimise Your Excess: Choose a voluntary excess you are comfortable with to balance premium savings against out-of-pocket risk.
3. Enhance Security: Fitting a Thatcham-approved alarm, immobiliser, or tracker can deter thieves and may earn you a discount from some insurers.
4. Consider Telematics Insurance: A "black box" policy monitors your driving style (speeding, acceleration, braking). Safe, smooth driving is rewarded with lower premiums, which is a direct incentive to adopt a lower-risk driving style.
5. Pay Annually: If you can, pay for your policy in one lump sum. Monthly payment plans always include interest, so paying annually is cheaper.
6. Review Your Mileage: Be accurate with your estimated annual mileage. Insurers see lower mileage as lower risk, so don't overestimate.

Safe Driving and Maintenance Tips for EVs

Preventing an accident in the first place is the ultimate way to protect your policy.

• Drive Smoothly: EVs are known for their instant torque and rapid acceleration. Driving smoothly and anticipating the road ahead reduces the risk of accidents and also maximises your battery's range and reduces tyre wear.
• Master Your ADAS: Read the manual and understand what your car's driver-assistance systems can and cannot do. Keep sensors and cameras clean for them to function correctly.
• Strategic Parking: Park in well-lit, secure areas. Avoid parking in tight spots or next to trolley bays in supermarkets to minimise the risk of dents and scrapes.
• Tyre Health is Crucial: EVs are significantly heavier than ICE cars, which puts more strain on tyres. Check tyre pressures and tread depth weekly. Worn tyres drastically increase stopping distances, especially in the wet.

In the Event of an Accident

1. Stop in a safe place.
2. Do not admit fault or liability.
3. Exchange details with the other party: name, address, phone number, and insurer details.
4. Take photos of the scene, the vehicles, and any damage from multiple angles.
5. Note the time, date, weather conditions, and any witness details.
6. Report the incident to your insurer as soon as possible, even if you don't plan to claim.

The Future of EV Repairs and Insurance

The motor insurance UK market is not standing still. The industry recognises the challenges and is actively working on solutions to make EV ownership more sustainable.

Industry Initiatives and Solutions

• Repair Over Replace: Research bodies like Thatcham are working with manufacturers to promote more repairable battery designs, including the ability to replace individual cells or modules rather than the entire pack.
• Growing the Repair Network: The government and industry bodies are promoting training initiatives to upskill more technicians, which should ease the labour shortage and bring down costs over time.
• A Circular Economy: Investment is growing in the UK for facilities that can safely diagnose, repair, remanufacture, and recycle EV batteries, creating a more sustainable and cost-effective supply chain.

As these initiatives mature, the cost of EV repairs is expected to stabilise and eventually decrease, which will be reflected in more competitive insurance premiums.

WeCovr: Your Partner in Navigating the EV Insurance Market

The world of EV insurance can seem complex and expensive, but you don't have to navigate it alone. As an FCA-authorised broker with deep expertise across the entire motor insurance spectrum—from private cars and motorcycles to complex commercial fleets—WeCovr is perfectly positioned to help.

Our specialists understand the unique risks associated with electric vehicles. We work with a broad panel of insurers, including those offering dedicated EV policies, to find you the right cover at a competitive price. Furthermore, clients who purchase motor or life insurance through WeCovr may be eligible for discounts on other insurance products, providing even greater value. Our high customer satisfaction ratings reflect our commitment to clear, impartial advice and excellent service.

Frequently Asked Questions (FAQ)

Q1: Is car insurance more expensive for electric cars in the UK? A: Yes, currently car insurance for EVs is often more expensive than for equivalent petrol or diesel models. This is primarily due to the higher cost of repairs, the price of specialist parts like battery packs, a shortage of qualified technicians, and the increased likelihood of the vehicle being written off after an accident.

Q2: What happens if my EV's battery is damaged in an accident? A: If your EV's battery pack is damaged, even if the damage appears minor, there is a significant risk your insurer will declare the vehicle a total loss, or "write-off". This is because many manufacturers do not permit repairs on the battery pack for safety reasons, and the cost of a full replacement can exceed the vehicle's market value. This is why having a comprehensive insurance policy is essential.

Q3: Can any garage repair an electric car after an accident? A: No, not every garage is equipped or qualified to repair an EV. Repairs, especially those involving the high-voltage battery and electrical systems, must be carried out by certified technicians using specialised, insulated tools and diagnostic equipment. Always ensure your insurer directs you to an approved EV repair centre to guarantee a safe and correct repair.

Q4: How can I find the best motor insurance policy for my electric vehicle? A: The best way to find a suitable and competitively priced policy for your EV is to use an expert motor insurance broker. A specialist broker, such as the FCA-authorised team at WeCovr, can compare policies from a wide range of insurers, including those with specific EV products. They can help you find cover that addresses the unique risks of EVs, such as battery cover and an EV courtesy car, ensuring you are properly protected.

Don't let rising costs leave you unprotected. Let our experts find the right EV insurance for you.

Get your free, no-obligation motor insurance quote from WeCovr today!