Electric vehicle owners who think they’re saving money on gas and maintenance — not to mention the planet — might want to reconsider when they see their insurance bills.If they can insure one at all.That’s because drivers in countries such as the UK are having trouble finding companies that will sell even basic auto insurance. And the ones that do are charging egregiously high premiums on the order of £5,000 — CAD$8,5000 — or more than double conventional gasoline-powered cars, even with good driving records.That’s because EVs cost more to repair and tend to sustain more damage in accidents. It comes after a Reuters analysis found an inordinate number of Tesla Model Y EVs in the US were being written off with less than 10,000 miles (16,000 kilometres) on them because they’re just too costly to fix in spite of a correspondingly higher price tag..The Tesla Model Y also happens to be the best-selling EV in Canada. Drivers have been reporting higher costs for other EV models as well.According to Insurance Bureau of Canada statistics, the average collision claim for a Model Y four-door is about 357% higher than a typical claim. Direct compensation property damage claims — where the driver isn’t at fault — were 272% higher.Exactly how much more it costs to fix a Tesla over any other conventional vehicle is difficult to determine. However, Car and Driver magazine reported a 2022 Model Y Long Range EV in a front collision would have cost USD$50,000 for the insurer to repair compared to the $60,000 price tag for the car. One Tesla service centre in the US quoted $16,000 to fix a battery pack coolant leak damaged by road debris. That’s because the battery is part of the overall car’s structural frame. .“First, the best repair is no repair, avoid the accident entirely,”Elon Musk.Tesla has acknowledged the discrepancy and has disputed the way insurance companies have calculated the cost of repairs to its vehicles. In 2019 it went as far as to offer its own insurance for Tesla drivers in a dozen states, offering discounts of up to 35% over major US insurers. In October it was expanded to Florida.In 2017 it claimed Tesla drivers with ‘autopilot’ and ‘autosteer’ functions were crashing 38% less often, resulting in fewer injuries and deaths. On Wednesday Tesla won the first US autopilot trial involving a fatal crash in California in 2019 after a 12-member jury ruled it was caused by human error after the driver had consumed alcohol.Earlier this year, Tesla boss Elon Musk said the company was working to bring the cost of repairs down by offering up changes to the cars’ bumper designs and improving the logistics of providing spare parts needed for collision repair.“First, the best repair is no repair, avoid the accident entirely,” he said, touting Tesla’s safety rating — with or without autopilot. In August, a Tesla Model S received the best National Highway Traffic Safety Administration score for any car ever tested.“Most accidents are actually small. They’re like a broken fender or scratched side of the car. But we’re actually solving how to get somebody’s car repaired very quickly and efficiently and back in their hands.”
Electric vehicle owners who think they’re saving money on gas and maintenance — not to mention the planet — might want to reconsider when they see their insurance bills.If they can insure one at all.That’s because drivers in countries such as the UK are having trouble finding companies that will sell even basic auto insurance. And the ones that do are charging egregiously high premiums on the order of £5,000 — CAD$8,5000 — or more than double conventional gasoline-powered cars, even with good driving records.That’s because EVs cost more to repair and tend to sustain more damage in accidents. It comes after a Reuters analysis found an inordinate number of Tesla Model Y EVs in the US were being written off with less than 10,000 miles (16,000 kilometres) on them because they’re just too costly to fix in spite of a correspondingly higher price tag..The Tesla Model Y also happens to be the best-selling EV in Canada. Drivers have been reporting higher costs for other EV models as well.According to Insurance Bureau of Canada statistics, the average collision claim for a Model Y four-door is about 357% higher than a typical claim. Direct compensation property damage claims — where the driver isn’t at fault — were 272% higher.Exactly how much more it costs to fix a Tesla over any other conventional vehicle is difficult to determine. However, Car and Driver magazine reported a 2022 Model Y Long Range EV in a front collision would have cost USD$50,000 for the insurer to repair compared to the $60,000 price tag for the car. One Tesla service centre in the US quoted $16,000 to fix a battery pack coolant leak damaged by road debris. That’s because the battery is part of the overall car’s structural frame. .“First, the best repair is no repair, avoid the accident entirely,”Elon Musk.Tesla has acknowledged the discrepancy and has disputed the way insurance companies have calculated the cost of repairs to its vehicles. In 2019 it went as far as to offer its own insurance for Tesla drivers in a dozen states, offering discounts of up to 35% over major US insurers. In October it was expanded to Florida.In 2017 it claimed Tesla drivers with ‘autopilot’ and ‘autosteer’ functions were crashing 38% less often, resulting in fewer injuries and deaths. On Wednesday Tesla won the first US autopilot trial involving a fatal crash in California in 2019 after a 12-member jury ruled it was caused by human error after the driver had consumed alcohol.Earlier this year, Tesla boss Elon Musk said the company was working to bring the cost of repairs down by offering up changes to the cars’ bumper designs and improving the logistics of providing spare parts needed for collision repair.“First, the best repair is no repair, avoid the accident entirely,” he said, touting Tesla’s safety rating — with or without autopilot. In August, a Tesla Model S received the best National Highway Traffic Safety Administration score for any car ever tested.“Most accidents are actually small. They’re like a broken fender or scratched side of the car. But we’re actually solving how to get somebody’s car repaired very quickly and efficiently and back in their hands.”
