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I’m not yet ready to go electric but, when I do, I would definitely want to get one through Motability so that I don’t have to worry about things like this;
Susceptibility of batteries to damage spurs company to pause EV cover.John Lewis has stopped offering insurance to electric car drivers amid fears over the cost of repairs.
The department store’s lending business John Lewis Financial Services has put a temporary pause on customers taking out cover or renewing existing policies on battery-power vehicles while its underwriter, Covéa, analyses risks and costs.
Insurers are facing rising costs for vehicle repairs, which are eating into profits. According to the Association of British Insurers (ABI), vehicle repair costs rose 33pc over the first quarter of 2023 compared to 2022, helping to push annual premiums to record highs.
Electric cars can be particularly expensive to repair, costing around a quarter more to fix on average, compared to a petrol or diesel vehicle, according to Thatcham Research, the motor industry’s research centre.
Particular worries surround the batteries, which are commonly mounted on the floor of the vehicle. This placement can make it more likely that it will be damaged even in a minor accident such as mounting a kerb.
According to Copart, an auction platform, around half the low-mileage electric vehicles it has salvaged have suffered minor battery damage.
The battery is also generally the most expensive part of an electric car and can account for as much as 50pc of the vehicle’s value, costing between £14,200 and £29,500.
Experts also say there is a shortage of technicians with the skills to carry out repairs.
According to the Institute of the Motor Industry (IMI), 39,000 UK mechanics are now qualified to work on electric cars. However, the IMI said there could be a shortage of around 16,000 qualified mechanics by 2032 as electric vehicle numbers rise.
According to figures from the Society of Motor Manufacturers & Traders (SMMT), 193,221 electric vehicles were registered in the UK over the year to August – a 40pc rise compared to the same period the prior year.
A spokesman for John Lewis Financial services said: “Our underwriter has temporarily paused offering new policies and renewals on fully electric vehicles while they analyse the risks and costs entailed.”
It comes after Rishi Sunak said earlier this month he would delay a planned ban on sales of new petrol cars from 2030 to 2035 as he scaled back a range of prior environmental pledges.
A spokesman for the ABI said: “Our members fully support the roll-out of electric vehicles and efforts to transition to net zero. Whether to offer insurance, and at what price, is a commercial decision for insurers based on their risk appetite.”
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There was a statemement put out by the ABI and/or SMMT at the end of last year from memory, citing high repair and storage costs for higher insurance groups for EV’s. I’ll have a look later.
Covea is the insurance provider behind John Lewis, I understand they extended their partnership a couple of years ago. More importantly does John Lewis’s announcement lead the way for small to medium sized insurnce companies, leaving the big boys to it!
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