The High Cost of Insuring Electric Vehicles

There is a myth propagated by the EV industry, and its hangers-on that EVs are simple compared to ICE or Internal Combustion Engines. New data uncover another hidden cost of EV ownership: high insurance premiums

That idea that EVs are "simple" is popular with people who can barely change a light bulb, and have no clue about things like amperage, resistance, chemistry of battery technology, what actually goes in to regenerative breaking systems, and the like. It's a battery and an electric motor.

In truth, what electric cars have become is disposable items, like your old cellphone. Use it until the battery is no good, and then chuck it in a drawer or take it to recycle. And like your iPhone, if there is any damage, it really difficult to repair.

The insurance premiums on electric vehicles are, on average, a whopping 49% higher than those for gas-powered cars, according to new data from the digital insurance platform Insurify.

The article does go into the financial considerations about paying those premiums, and how the ongoing costs ARE a factor. But eventually they get to the real issue.

Battery-powered cars cost more to insure because they have higher sticker prices, are more easily damaged and require specific parts for repairs, Taliesin said. A fender bender that would be a simple fix on a traditional vehicle could require an expensive and lengthy repair on an EV to mend the battery and recalibrate the car and its sensors.

If the car is not just written off for the price of the battery.

This started with a story from the UK. Inability to repair EV batteries could cause insurance to spike.

EV drivers told premiums will rise until battery repairs are more feasible

Again. The idea that EVs are less complicated than internal combustion engines is a fairy tale. In particular, the batteries are a bomb, waiting to happen. It is hard to repair a bomb. And it is an expensive bit of kit to replace.

This is because the component is worth up to 55% of the value of a new EV – and more as the vehicle ages and depreciates. As a result, some EVs that sustain damage to their battery in an accident are being written off.

If a fender bender results in any damage to the battery case, it needs to be replaced in most cases.

When I first moved back to Ohio in 2011 or 2012, I hit an unexpected bump and bottomed out the car I was driving on some railroad tracks, damaging the transmission cover and gasket. It was then leaking transmission oil all over the place. The repair was, if memory serves, somewhere around a thousand bucks, for a new pan, gasket, oil, and installation. It took a day. It was not worth going through insurance because it was about my deductible, plus I never go through insurance if I can avoid it. There was no long-term harm done to the vehicle, which I drove for a few more years before I upgraded to a really big, four-wheel-drive SUV.

That interaction with an electric vehicle would likely have turned the battery into a dangerous fire hazard. Well, they are dangerous fire hazards, but it would have increased the danger, causing the battery to need replacement.

The hat tip for that UK insurance story goes to MGUY Australia and his video 💰💰Why INSURANCE costs for EVs will continue to INCREASE 💰💰.