Average, warranty claims for electric vehicles are 30-50% higher than for comparable internal combustion engine vehicles, according to Warranty Solutions Group.
WSG’s analysis of 800 electric car warranty claims paid between August 2023 and August 2024, highlights that the most common issues are with battery charge control modules, which cost an average of £1,311 to repair, power distribution boxes (£747), warning lights (£875), and shock absorbers (£588).
EVs contain unique components such as large battery packs, electric motors, and power electronics – all of which are expensive to manufacture and replace.
The battery is the costliest component, with replacement costs significantly higher than most ICE engine repairs, typically ranging between £8,000 and £12,000 for standard electric cars.
Most common EV warranty claims 2023 – 2024
One of the biggest problems with EVs is battery degradation, which is often accelerated by frequent rapid charging. Some drivers have reported faster-than-expected degradation, raising concerns about costly battery replacements.
Lithium-ion batteries commonly used in electric cars, degrade over time, impacting the vehicle’s range and performance.
Like all batteries, their capacity decreases over time. Researchers suggest that battery capacity declines by approximately 2.3% each year.
Battery longevity is highly dependent on temperature. One study found that in Florida, where temperatures are high, batteries last for 5.2 years on average. In Alaska’s colder climate, they could last up to 13.3 years.
However, while batteries can be an issue with EVs, drivers face other expensive faults.
The largest claims paid by us between August 2023 and August 2024 were £5,000 for a transfer box and electric drive system on an Audi E-Tron Sportback Quattro, £3,654 for a radio unit on a Nissan Leaf and £3,282 for a gearbox mechatronic unit on an Audi A3 Sportback E-Tron.
Largest EV claims paid by WSG 2023-2024
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.
Unlike ICE vehicles, which can be serviced by a wide range of independent mechanics, EVs rely more on manufacturer-certified technicians and parts, limiting competition in repair services and keeping prices high. EVs also depend heavily on sophisticated electronics and software, making diagnostics and repairs more complex and expensive than with ICE vehicles.
Insurers and brokers need to understand the risks associated with alternative fuel vehicles and develop appropriate premiums for this emerging market.
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.
