Electric cars: why are motor insurance prices soaring?

Thatcham Research, a British automotive research center, has published a study on the cost of motor insurance for electric vehicles. The findings revealed that insurance premiums for electric models are on average 25% higher than for combustion-powered vehicles.

Several factors explain this extra cost. First of all, the average repair time for an electric car is 14% longer than for a diesel or gasoline vehicle.

Second, electric vehicles present a higher risk of fire. The battery may catch fire days after an accident. These constraints prompt insurers to take additional precautions in order to protect people and property, such as storing damaged vehicles at least 15 meters apart.

Third, it is generally impossible to repair an electric vehicle's battery following an accident. This is due to a lack of data from vehicle manufacturers, the absence of any means of diagnosing the condition of the battery after an accident, and the insurers' reluctance to cover vehicles using repaired batteries.