EV insurance write-offs are half as likely as for petrol or diesel
Petrol and diesel cars are being written off by insurers at twice the rate of electric cars, according to a new study.
Vehicle valuation specialists Cap HPI have revealed that 0.9% of EVs under five years old have been written off, compared to 1.89% of petrol and diesel vehicles.
Its study, which examined data from 2015 to August 2024, also found a similar gap for newer cars. At one year old, the percentage falls to 0.2% for EVs and 0.4% for ICE vehicles.
The latest data flies in the face of some recent reports suggesting that insurers are more likely to write-off EVs due to complex or expensive repairs. It also comes in the wake of reports showing EVs are cheaper to insure, cost less to maintain and have batteries that will last 2o years or more.
Jon Clay, identification director at Cap HPI, said: “The study challenges one of the many misconceptions about electric vehicles. The data clearly shows that EVs are written off at half the rate of petrol and diesel vehicles. We work hard to provide an accurate picture of the automotive sector to the industry and consumers alike, from valuation data to provenance checks and trend analysis.
“The motor industry has to collectively address the wave of misinformation around EVs that is present online to enable consumers and fleet customers to make informed and well-balanced decisions about their next vehicle.”
Earlier this year Reuters claimed that cars with minor damage were being written off and lightly damaged battery packs were ‘piling up’ in scrapyards due to a lack of repair options.
Crash and insurance specialists Thatcham Research also warned that EV repairs could be uneconomical due to expensive replacement parts such as batteries, and a lack of understanding in assessing damage. It said that the vehicle repair and assessment industries needed to modernise and develop a better understanding of the different challenges posed by EVs compared with ICE.
The government has recognised the need to address misinformation around EVs. Last year, Richard Bruce, director of transport decarbonisation at the Department for Transport, said: “I do think there has been an impact from a concerted campaign of misinformation over the last 14 months or so that has been pushing consistent myths about EVs that people absorb and which is reflected in their appetite [for purchasing EVs].
“There is an anti-EV story in the papers almost every day. Sometimes there are many stories, almost all of which are based on misconceptions and mistruths, unfortunately.”
