EVs up to 50% more expensive to repair than ICE vehicles, finds WSG

Research by Warranty Solutions Group (WSG) reveals that electric vehicles (EVs) are significantly more costly to repair than their internal combustion engine (ICE) counterparts.

According to WSG’s analysis of EV warranty claims for 2023-2024, repair costs for EVs are, on average, 30-50% higher.

Among the most common EV issues are failures in battery charge control modules, power distribution boxes, warning lights and shock absorbers.

The battery charge control module alone averages a repair cost of £1,311.12, while power distribution box repairs are around £747.65, while a customer may expect to pay £875.00 to repair warning lights and £588.86 to repair shock absorbers.

WSG highlights that battery replacements can cost between £8,000 and £12,000 on standard models.

John Colinswood, CEO of WSG, explained: “There is much industry discussion about the cost of EV repairs compared to internal combustion engine vehicles. Many studies show that electric vehicles have lower servicing and maintenance costs than petrol and diesel cars because they have fewer moving parts that can fail.

 "However, not all repair shops are equipped to handle EVs, and specialised knowledge is needed to safely work on high-voltage electrical systems. This drives up labour costs, as repairs often require trained professionals, sometimes through the manufacturer or specialised dealers."

The study also referenced research from Cap HPI, which compared the service, maintenance, and repair (SMR) costs of EVs with ICE vehicles over a typical three-year ownership period.

The results showed that EVs are not always the cheaper option, with the Volkswagen ID.3’s maintenance plan costing £1,050 over three years, compared to £615 for the diesel Golf due to the more expensive tyres EVs require to support their heavier batteries.

According to Gartner Research, by 2027, next-generation battery electric vehicles are expected to cost less to produce than equivalent ICE models, addressing one of the main barriers to EV adoption.

However, it is estimated that the average cost of an EV body and battery repair after a serious accident will increase by 30%. 

"Insurers and brokers need to understand the risks associated with alternative fuel vehicles (AFVs) and develop appropriate premiums for this emerging market," says Collinswood.

"Data already shows longer repair times due to safety requirements and higher parts-to-labour ratios because manufacturers often mandate part replacements, especially in comparison to ICE vehicles. Insurers will need to consider these factors when setting premiums. As more data becomes available, it will provide greater insights into these differences."

However, EVs still offer savings in other areas. Colinswood notes that braking components in EVs often last longer due to regenerative braking systems, which help recharge the battery.

Despite the higher repair costs, Colinswood remains optimistic about the future of EVs noting that by 2027, next-generation EVs are expected to cost less to produce than ICE vehicles. However, body and battery repairs after serious accidents will likely increase by 30%, meaning insurers and brokers need to consider these evolving risks.

As EV technology advances, Colinswood encourages dealers to be transparent with customers about potential repair costs and the value of extended warranties specifically designed for EVs to protect buyers from unforeseen expenses:

"By combining an honest discussion about repair costs with a positive outlook on the benefits of EV ownership, motor dealers can build trust and encourage buyers to invest in extended warranties."

"It’s important that dealers advise buyers about the higher repair costs of EVs and the benefits of an extended warranty, taking a thoughtful, transparent, and educational approach."