Summary
- Study found EV drivers cause more accidents than gas and diesel car drivers in Europe
- EVs are more expensive to insure and repair compared to traditional vehicles
- Data shows EVs are driven less on average than gas or diesel vehicles
- Drivers’ behavior changes when switching to an EV, potentially leading to more accidents
- Higher repair costs for EVs contribute to higher insurance costs, posing a profitability issue for insurance companies
Article
A study conducted by Lero and the University of Limerick found that electric vehicle (EV) drivers in Europe are more likely to be at fault in crashes compared to drivers of gasoline and diesel cars. The study analyzed telematics data from 125 million commercial fleet vehicle trips in the Netherlands from January 2022 to October 2022, as well as insurance-claim data from the same period. Researchers discovered a 4% higher incidence of at-fault insurance claims for EV drivers, despite EVs showing lower average mileage than traditional vehicles. This suggests that drivers’ behavior may change when switching to an EV, potentially contributing to the increased number of accidents involving these vehicles.
In addition to being more accident-prone, EVs are also more expensive to repair compared to internal-combustion vehicles. The study found that EVs are 6.7% more expensive to repair, a trend that aligns with findings in the United States. According to a report by Mitchell International, EV collision repairs cost 20% more than equivalent repairs to combustion vehicles. The higher costs of repairing EVs can be attributed to more involved collision repair processes for even minor damage, as well as the potential for the heavier weight of EVs to cause more damage in accidents. This, combined with the high cost of battery replacement for EVs, results in higher insurance costs for EV owners and poses a profitability issue for insurance companies.
The study also highlighted that EV drivers tend to drive their vehicles less on average compared to gas and diesel cars. Despite this, EV drivers still exhibit a higher at-fault rate in accidents, indicating a potential adjustment period for drivers when switching to electric vehicles. The unique characteristics of EVs, such as one-pedal driving modes and instant torque, may contribute to this finding, as these features can make quicker EVs more prone to accidents. Data from U.S. insurance company LexisNexis showed a 17% higher claims frequency and 34% higher claim severity for EVs, further emphasizing the challenges faced by EV drivers in terms of safety and repair costs.
One of the key factors driving the increased repair costs for EVs is the complexity and specialized components of these vehicles. The higher repair costs can be attributed to the specific expertise and equipment required for repairing EVs, which adds to the overall expense of maintaining and insuring these vehicles. Additionally, the higher weight of EVs can lead to more severe damage in accidents, further contributing to the increased repair costs. This poses a challenge for insurance companies in determining appropriate coverage and pricing for EVs, as the higher repair costs and accident rates may impact their profitability.
The findings of the study raise important considerations for both EV manufacturers and insurance companies. EV manufacturers may need to focus on improving safety features and driver education to reduce the incidence of accidents among EV drivers. Insurance companies, on the other hand, may need to reassess their pricing strategies and coverage options for EVs to account for the higher repair costs and accident rates associated with these vehicles. Collaboration between manufacturers and insurers may be essential in addressing the challenges faced by EV drivers and ensuring the sustainability of the EV market in the long term.
Overall, the study sheds light on the unique challenges faced by EV drivers in terms of accident rates and repair costs. Despite the potential environmental and cost-saving benefits of EVs, these vehicles may still present higher risks and expenses for drivers and insurers. Addressing these challenges will require collaboration and innovation within the industry to improve the safety and affordability of EVs, ensuring their continued growth and adoption in the automotive market.
Read the full article here
