Thatcham Research has launched a new initiative to address the growing challenge of electric vehicle insurability and repair costs. The EV Blueprint sets out eight key requirements to
Thatcham Research has launched a new initiative to address the growing challenge of electric vehicle insurability and repair costs.
The EV Blueprint sets out eight key requirements to make electric vehicles more repairable, sustainable and affordable.
While the automotive industry has made significant progress over the past five years in understanding EVs and implementing essential safety measures in the case of collisions, a growing number of electric vehicles are being unnecessarily written off each year, Thatcham says.
It warns that some operational challenges remain among EV repairs. A recent Thatcham Research survey, conducted in partnership with the Centre for Economics and Business Research (CEBR), reveals that battery-related issues remain the primary concern for 44.6% of insurers and 41.7% of repair professionals. With batteries accounting for up to 40% of a vehicle’s total value, even minor collision damage can result in total loss determinations, particularly as vehicles depreciate over time.
The EV Blueprint shows that instead of replacing a battery, it could be economically repaired – keeping EVs over three years old on the road and out of the scrapyard.
Dan Harrowell, principal engineer, advanced technologies Thatcham Research, commented: “How affordable it is to insure these cars largely relies on how well the industry can handle repairs after accidents. As repair shops have become more experienced with electric vehicle technology, the costs of fixing these cars have already decreased by 10.7%.
“To continue making insurance more affordable as more electric vehicles hit the roads, car manufacturers, insurance companies and repairers need to keep collaborating to overcome any remaining challenges. This blueprint provides the roadmap for that collaboration, ensuring we can deliver both the environmental benefits of electrification and the economic sustainability that consumers need.”
The EV Blueprint outlines eight essential recommendations to reduce insurance premiums through lower total loss rates and improved salvage values.
The recommendations outlined in the EV Blueprint are underpinned by three essential principles: safety, sustainability and affordability.
As an example, Thatcham Research’s EV Blueprint presents a three-year-old EV that has sustained minor side impact damage to the HV battery bracket. Current mandated procedures frequently result in total loss because battery casing damage requires a replacement with a new battery which costs more than the car is worth. For a true circular economy, the battery casing would be repaired without pack removal or replaced with a significantly lower cost refurbished units which would get the car back on the road.
The potential for EV batteries to have a very long operational life has been underlined by a report by Generational, which has tested more than 8,000 electric cars and light commercial vehicles. It found that 8- to 9-year-old vehicles retain a median 85% battery capacity, compared to new, while the median battery state of health for 4- to 5-year-old EVs was 93.53%.
“This represents an achievable future state,” continued Harrowell. “The vehicle returns to service promptly, the customer retains their vehicle, salvage values improve and environmental impact is substantially reduced compared to manufacturing a new battery. Real-world data is showing that batteries can have a very long usable life that we should try to maximise through sustainable repair.”
Thatcham is calling on vehicle manufacturers, battery manufacturers, repairers, insurers and training providers to adopt these recommendations, ensuring the electrification transition remains economically sustainable for both industry and consumers.
Jonathan Hewett, CEO, Thatcham Research, said: “The eight recommendations we’ve outlined are entirely achievable. We already see these principles working in conventional vehicles – resettable safety systems, accessible diagnostics, serviceable components. There’s no technical reason why EVs can’t meet the same standards. What we need now is industry-wide commitment to designing vehicles that can be safely assessed, efficiently repaired, and economically maintained throughout their entire lifecycle.
“We want to work with vehicle and battery manufacturers to create a genuinely sustainable electric vehicle ecosystem. Not just sustainable in terms of emissions, but sustainable economically and practically for the millions of consumers who will depend on these vehicles in the years ahead.”
