A post by Reuters caught our eye, and made us sit up and think. In a nutshell, they say that some insurers believe the electric vehicle future is bleak. Although we should add that ongoing research could render this opinion irrelevant. We review the main discussion points here, and leave it up to you to reach your own conclusion.
Greater Electric Car Transparency in Future
Reuters confirms insurers and industry experts are concerned premiums will keep rising, unless car companies are more open with information. Repairers need improved access to battery data, before they can repair packs even if they are only slightly damaged from accidents.
Carmakers on the other hand say their electric vehicle battery packs are repairable. Although Reuters goes on to say very few are willing to allow access to critical information. Without wanting to take sides on the matter, we are concerned this impasse could lead to a bleaker electric vehicle future.
Some Consequences of This State Of Affairs
UK-based Thatcham Research reveals the following trends according to Reuters:
- Insurers say they are forced to scrap electric vehicles even after minor accidents.
- This situation could potentially undermine the future of electric vehicle adoption.
- There is a concerning lack of affordable, available battery pack repair solutions.
- Insurers claim they are unable to access even slightly damaged battery packs.
- And as a result of these factors, they are forced to write off cars with low mileages.
Reuters continues by reporting that batteries can make up half of new electric vehicle costs. Even a single year into their life, their replacement cost can be greater than the vehicle’s second hand value.
Electric vehicle insurance claims in UK are apparently 25% more expensive than fossil fuel ones, and take 14% longer to complete due to these complications. And finally, the average auto repair lot can accommodate up to 100 conventional vehicles, but only 2 electric cars for fire safety reasons.
More Information
FAA Guidelines for Lithium Battery Transport
Six Hundred Mile Range on LMFP Battery
Preview Image: Cutaway of Electric Car Batteries
