By Paul Homewood
h/t Paul Kolk
And in yet more bad news for the EV rollout:
John Lewis has stopped offering insurance to electric car drivers amid fears over the cost of repairs.
The department store’s lending business John Lewis Financial Services has put a temporary pause on customers taking out cover or renewing existing policies on battery-power vehicles while its underwriter, Covéa, analyses risks and costs.
Insurers are facing rising costs for vehicle repairs, which are eating into profits. According to the Association of British Insurers (ABI), vehicle repair costs rose 33pc over the first quarter of 2023 compared to 2022, helping to push annual premiums to record highs.
Electric cars can be particularly expensive to repair, costing around a quarter more to fix on average, compared to a petrol or diesel vehicle, according to Thatcham Research, the motor industry’s research centre.
Particular worries surround the batteries, which are commonly mounted on the floor of the vehicle. This placement can make it more likely that it will be damaged even in a minor accident such as mounting a kerb.
According to Copart, an auction platform, around half the low-mileage electric vehicles it has salvaged have suffered minor battery damage.
The battery is also generally the most expensive part of an electric car and can account for as much as 50pc of the vehicle’s value, costing between £14,200 and £29,500.