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The research, published by Thatcham Research and funded by the Government’s innovation agency, Innovate UK, highlights the technical and practical differences between battery electric vehicle (BEVs) and internal combustion engine (ICE) vehicle insurance claims processes.
Despite newer BEVs featuring high fitment levels of ADAS (Advanced Driver Assistance Systems) and passive safety technologies, they are not risk or incident free. Due to the nascent nature of the industry, BEV incident claims are currently 25.5% more expensive than their ICE equivalents and can take 14% longer to repair, suggests Thatcham.
https://www.fleetnews.co.uk/news/la...e-repair-costs-revealed-versus-ice-equivalent
The most significant challenges to the claims flow originate from high voltage (HV) batteries. BEV batteries are a significant percentage of the original vehicle value, rapidly presenting significant negative impact to the economic model of vehicle repair. Despite the relatively small number of BEVs in the market there is already a lack of affordable or available repair solutions, inadequate post-accident diagnostics, and limited availability of recycling and reusability options. Without meaningful change, there is a strong likelihood that claims costs will continue to rise disproportionally. Modelling shows that in 2022, 9400 vehicles were potentially involved in an accident which could result in battery inclusion in a post-accident repair. This is estimated to reach up to 260,000 vehicles annually by 2035.
Although several vehicle manufacturers are considering repair schemes, battery recycling and repurposing schemes and indeed battery remanufacturing, little or none of this is yet planned in the UK market. Feedback from the vehicle recycling industry in the UK is that no value is being recovered from UK based BEV batteries and in fact it costs money to dispose of batteries. Those costs include export of materials to Europe and re-import of waste.
https://www.thatcham.org/wp-content...t-Innovate-UK-and-Thatcham-Research-FINAL.pdf
Despite newer BEVs featuring high fitment levels of ADAS (Advanced Driver Assistance Systems) and passive safety technologies, they are not risk or incident free. Due to the nascent nature of the industry, BEV incident claims are currently 25.5% more expensive than their ICE equivalents and can take 14% longer to repair, suggests Thatcham.
https://www.fleetnews.co.uk/news/la...e-repair-costs-revealed-versus-ice-equivalent
The most significant challenges to the claims flow originate from high voltage (HV) batteries. BEV batteries are a significant percentage of the original vehicle value, rapidly presenting significant negative impact to the economic model of vehicle repair. Despite the relatively small number of BEVs in the market there is already a lack of affordable or available repair solutions, inadequate post-accident diagnostics, and limited availability of recycling and reusability options. Without meaningful change, there is a strong likelihood that claims costs will continue to rise disproportionally. Modelling shows that in 2022, 9400 vehicles were potentially involved in an accident which could result in battery inclusion in a post-accident repair. This is estimated to reach up to 260,000 vehicles annually by 2035.
Although several vehicle manufacturers are considering repair schemes, battery recycling and repurposing schemes and indeed battery remanufacturing, little or none of this is yet planned in the UK market. Feedback from the vehicle recycling industry in the UK is that no value is being recovered from UK based BEV batteries and in fact it costs money to dispose of batteries. Those costs include export of materials to Europe and re-import of waste.
https://www.thatcham.org/wp-content...t-Innovate-UK-and-Thatcham-Research-FINAL.pdf
