EV battery scratched during accident? Insurance may consider it a total loss

The rising cost of insuring electric vehicles (EVs) is a growing concern in the UK, where insurance assessors warn of the challenges of repairing EVs involved in even minor accidents, reports GoAuto Premium.

Thatcham Research, a UK motor insurers' automotive research centre, reported that EV insurance policy premiums could continue to rise if original equipment manufacturers (OEMs) fail to recognise the effect of minor accidents on the car's batteries.

Director of Thatcham Research, Matthew Avery, stated that in most EV accidents, there is no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars. This is leading to higher premiums.

Carmakers such as Ford, General Motors, and Nissan have claimed that their battery packs are repairable in a report by Reuters. However, others namely Tesla and Stellantis have taken a different approach, with Tesla using structural battery packs that are reportedly non-repairable, while Stellantis has cited concerns over data privacy.

Sandy Munro, head of Michigan-based Munro & Associates, which tears down vehicles and advises car companies on how to improve them, said the Tesla Model Y battery pack has "zero repairability."

"A Tesla structural battery pack is going straight to the grinder," Munro said.

Also read: EVs could catch fire days after crash, and keep reigniting for up to a week

Christoph Lauterwasser, the managing director of Allianz Centre for Technology, said the handling of batteries is a crucial issue as the number of cases is expected to increase.

Lauterwasser also highlighted that the production of EV batteries emits more CO2 than fossil-fuel models, which means that EVs must be driven for thousands of kilometres before they offset those extra emissions.

He added that throwing away an EV at an early stage would result in losing most of the advantage in terms of CO2 emissions. Allianz has encountered scratched battery packs where the cells inside are likely undamaged, but without diagnostic data, it is forced to write off those vehicles.

Industry experts and insurance providers cited by Reuters said that unless OEMs produce more easily repairable battery packs and provide third-party access to battery cell data, already-high insurance premiums will keep rising as EV sales grow and more low-mileage cars get scrapped after collisions.

Also read: Due to fire risk, shipping companies raise concern on EV transportation and storage