Repair costs for electric cars are rising: what does this mean for car insurance?

Repair costs for electric cars are rising: what does this mean for car insurance?

According to a report by www.giessener- Allgemeine.de, Electric cars have fewer accidents than combustion engines. Nevertheless, insurance premiums are increasing in some cases. This is also due to gigacasting.

Repair costs for electric cars are up to 35 percent higher

As already reported, the increased premiums are due to the high workshop costs for electric cars, which are on average 30 to 35 percent higher than for gasoline or diesel engines. The unnecessary battery quarantine in particular causes high costs, as damaged traction batteries have to be specially stored. The Association of Insurers criticizes these high repair costs for electric cars.

The trend towards gigacasting is causing repair costs to rise

Another factor for the high repair costs is the trend towards gigacasting. Large body parts are made in one piece, which can then only be replaced with great effort after an accident. Although this technology saves costs in manufacturing, it leads to increased repair costs.

It is expected that the increased insurance premiums and repair costs for electric cars could affect consumer interest in these vehicles. This could also lead to a decline in sales of electric cars compared to combustion engines, as the total cost of ownership for consumers will be higher. This, in turn, could affect competition in the automotive industry as manufacturers may need to provide incentives to increase sales of electric vehicles. It remains to be seen how the market will develop in the coming years.