John Lewis has stopped offering insurance to electric car drivers amid fears over the cost of repairs.
The department store’s lending business John Lewis Financial Services has put a temporary pause on customers taking out cover or renewing existing policies on battery-power vehicles while its underwriter, Covéa, analyses risks and costs. [emphasis, links added]
Insurers are facing rising costs for vehicle repairs, which are eating into profits.
According to the Association of British Insurers (ABI), vehicle repair costs rose 33pc over the first quarter of 2023 compared to 2022, helping to push annual premiums to record highs.
Electric cars can be particularly expensive to repair, costing around a quarter more to fix on average, compared to a petrol or diesel vehicle, according to Thatcham Research, the motor industry’s research center.
Particular worries surround the batteries, which are commonly mounted on the floor of the vehicle. This placement can make it more likely that it will be damaged even in a minor accident such as mounting a curb.
According to Copart, an auction platform, around half the low-mileage electric vehicles it has salvaged have suffered minor battery damage.
The battery is also generally the most expensive part of an electric car and can account for as much as 50pc of the vehicle’s value, costing between £14,200 and £29,500.
Experts also say there is a shortage of technicians with the skills to carry out repairs.
According to the Institute of the Motor Industry (IMI), 39,000 UK mechanics are now qualified to work on electric cars. However, the IMI said there could be a shortage of around 16,000 qualified mechanics by 2032 as electric vehicle numbers rise.
h/t RO
Read rest at Telegraph
Gosh, who would have thought that an EV which is simpler to build due to fewer parts would be more expensive to repair? Or that there would be a shortage of qualified technicians to repair them?
So just when will all of Hollywood switch to all EV for their Oscar Award? and their nest movie premiere?