Lack of battery repairability causes concern to insurers

April 03, 2023
Lack of battery repairability causes concern to insurers
Tesla Model Y structural battery pack
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Environmental benefits and sustainability, are key reasons why many car buyers opt to go electric, but as well as question marks over the manufacturing and non tailpipe emissions of EV's, repairability has now also emerged as a potential issue.

Concerns are being voiced by some experts that damage to vehicle battery packs is causing many cars to be written off, because of the high cost of battery replacement.

EV batteries can account for up to half of the price of a new electric car. However, the batteries themselves cannot currently be repaired if damaged, making expensive replacement the only option to get the car back on road. This adds significantly to the cost of accident repair and often means relative new EVs being written off. This can mean insurance premiums rising and poses an environmental risk in terms of damaged battery disposal. Early write off, also means an EV will not cover the miles necessary to bring any emission benefits, when CO2 production emissions are taken into account.

The issue appears to be more serious with dedicated EV manufacturers such as Tesla. It model Y has what is described, as a structural battery pack, which has almost zero repairability. In contrast, more traditional manufacturers such as Ford and Nissan say they have taken repair of batteries into account, with a more modular design.

It also appears that car makers unwilling to share battery diagnostic data with the aftermarket, is also affecting the ability to carry out repairs.

At present, with EVs still accounting for a very low percentage of the total car parc, the issue of repairability of battery packs and housing may not be major, but as the EV market grows, it will become significant. Insurers in particular, base premiums for specific vehicles on the cost of repairs, so if a specific model experiences a high write of rate, premiums on these cars will be significantly higher.

At present, most EV drivers do pay slightly hirer premiums than ICE drivers, but this gap could grow if battery repair issues are not addressed.

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