The Hidden Costs of EV Ownership
Electric vehicles (EVs) are becoming increasingly popular in Australia, with many consumers attracted to their lower running costs and environmental benefits. However, what often goes unnoticed is the high cost and complexity of repairing EVs—a challenge that has led many repairers, including South Melbourne Smash Repairs (SMSR), to consider not servicing EVs due to insurance restrictions and safety concerns.
While EVs can save money on fuel and maintenance, collision repairs are significantly more expensive. This article breaks down the key issues facing EV repairs, why they are often total loss cases, and how this impacts insurance costs and resale value.
Why Many Panel Beaters Won’t Repair EVs
Many smash repair shops, including South Melbourne Smash Repairs, consider not to repair EVs. As Phil Galea, co-owner of SMSR, explains:
“South Melbourne Smash Repairs take further consideration in the handling of EV repairs due to insurance restrictions and the risks involved. “We actually are not doing many EVs,” explains Phil Galea. “Like Tesla, they will only sell parts to their shops so we weren’t doing them. If the damage is near the battery intake, you wouldn’t touch it due to the safety of the customer and our staff.”
Key Reasons Panel Beaters Avoid EV Repairs
- Insurance Restrictions: Many independent panel beaters are not covered to work on high-voltage systems.
- Battery Damage Risks: If a repair involves damage near the battery, it can be too dangerous or costly to attempt.
- Lack of Qualified Technicians: Few technicians in Australia are trained in EV repair, limiting available services.
The EV Repair Problem: Why Even Minor Damage Can Lead to a Write-Off
One of the biggest issues with EV repairs is that even minor damage can result in a total loss claim. This happens because battery replacements are incredibly expensive, to following the method of repair from the manufacturer is also very expensive—often costing more than the car’s market value.
“If the repair costs approach or exceed the market value of the vehicle, insurers are more likely to declare it a total loss, which in turn drives up insurance premiums, explains Phil Galea.
Why So Many EVs Are Written Off
- Battery Damage is Unfixable: Even a small dent in the battery casing can make the entire vehicle unsafe.
- Expensive OEM Parts: Most EV parts must be sourced from manufacturers, adding to the cost.
- High Labour Costs: Repairs require specialists, who are in short supply, making labour expensive.
According to a CarExpert report, EV repairs cost 20% more on average than petrol or diesel vehicles.
Insurance for EVs: Why Premiums Are Skyrocketing
With the high cost of repairs and frequent total-loss cases, insuring an EV is significantly more expensive than insuring a traditional vehicle. Phil Galea notes:
Key Insurance Challenges for EV Owners
- Higher Premiums: Many insurers now charge 15-20% more for EV coverage.
- Limited Insurer Options: Some insurers may refuse to cover EVs due to their high write-off rate and or costs to repair.
- Difficult Claims Process: Fewer repairers mean longer delays and higher out-of-pocket costs for repairs.
The Safety Risk: EV Battery Fires
One of the lesser-known risks of EV ownership is battery fires. Unlike petrol cars, EV fires can be more difficult to extinguish, sometimes requiring submersion in water for days.
Why EV Battery Fires Are a Growing Concern
- Thermal Runaway: Once an EV battery ignites, it can burn uncontrollably for hours.
- Damage From Accidents: Even minor collisions can trigger long-term battery failures, leading to later fires.
- Difficult to Extinguish: Fire departments need special training and equipment to handle EV fires.
The Resale Value Concern
EVs also lose value faster than petrol or diesel cars, partly due to high repair costs and insurance risks.
According to Electric Vehicle Council data, EV resale values drop faster because:
- Buyers worry about battery degradation.
- Insurers charge higher premiums.
- Limited repair options increase long-term ownership costs.
What Car Owners Need to Know
Key Takeaways
Many panel beaters, including SMSR, don’t repair EVs due to high risks and insurance limitations.
EV insurance costs are rising, and some insurers may refuse coverage altogether.
Even minor damage can lead to a total loss due to battery replacement costs.
Resale values are lower compared to petrol cars due to ownership costs.
Before buying an EV, it’s essential to understand the long-term financial and repair challenges involved. South Melbourne Smash Repairs provides expert guidance on vehicle repairs but does consider not servicing EVs due to these growing industry risks.
For trusted smash repairs in South Melbourne, contact South Melbourne Smash Repairs today.
Disclaimer
This article is for informational purposes only and should not be considered professional advice. The repairability, insurance coverage, and long-term costs of electric vehicles vary depending on individual circumstances, vehicle models, and industry developments. If you require guidance on vehicle repairs or insurance matters, we recommend consulting a qualified automotive expert or insurance provider. South Melbourne Smash Repairs does not repair EVs and assumes no responsibility for decisions made based on the information provided.
