Tesla vehicle owners are surprised by the steady rise in electric vehicle (EV) insurance prices. While the cost of insurance for gasoline cars has also increased, the rise in insurance premiums for EVs has been much more significant. According to Confused.com, the average cost of car insurance for EVs increased by a staggering 72% in the year to September, compared to a 29% increase for petrol and diesel models. Even the Tesla Model 3, the most cited EV on the site, has seen a more than two-thirds increase in premiums in just two years.
One of the key factors contributing to higher insurance rates for EVs is the cost of repairs. According to a Thatcham survey, insurance claims for EVs are on average 25% higher than those for combustion engine vehicles and take 14% longer to repair. This is mainly due to the high costs of replacing EV components, including batteries, which represent a significant portion of the total vehicle cost. Additionally, the shortage of spare parts and specialized technicians further complicates the EV repair process.
Another concern is the vulnerability of EV batteries to damage. Even slight impacts to battery packs can cause cell instability, potentially leading to fires or explosions. As a relatively new technology, EVs do not have a comprehensive data history that insurers can rely on to assess maintenance and repair costs. This in turn contributes to higher insurance premiums for EV owners.
Although rising insurance rates may make EVs less attractive to potential buyers currently, the total cost of EV ownership is expected to balance out in the long term. The lower operational costs of EVs, including cheaper electricity compared to gasoline, can offset the higher initial cost of the vehicle. However, if insurance rates continue to rise, this could impact EV adoption as potential buyers will consider the overall affordability of owning these vehicles.
2023-10-28 13:28:37
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