Expensive repairs drive up vehicle insurance for electric cars

Expensive repairs drive up vehicle insurance for electric cars

According to a report by www.welt.de, high repair costs make vehicle insurance for electric cars more expensive. Comprehensive insurance for some electric models is already more expensive than for comparable combustion engines, although electric vehicles are less frequently involved in accidents. The increased premiums are due to high workshop costs for electric cars, which are on average 30 to 35 percent higher than for gasoline or diesel engines. This is partly due to unnecessary battery quarantine, which causes high costs, as well as the trend towards gigacasting, in which large body parts are made in one piece that can only be replaced with great effort after an accident.

As an economic expert, I would like to add that the increased repair costs for electric cars can also have an impact on the market and the consumer. On the one hand, higher insurance premiums could dampen demand for electric cars, especially among price-sensitive consumers. On the other hand, insurance companies could start offering more targeted and individual insurance tariffs for electric cars in order to better assess the risk and costs.

The introduction of new technologies and production processes such as gigacasting will also have an impact on the automotive industry. Manufacturers that use these technologies early and effectively can save costs in both production and repair of accident damage and gain a competitive advantage. Other manufacturers may be forced to follow suit in order to remain competitive.

Overall, it can be expected that the increased repair costs for electric cars could change the insurance landscape and encourage the automotive industry to develop more efficient and cost-effective repair methods. In the long term, this could lead to an adjustment of insurance premiums and a further spread of electric cars.