The Surprising Truth About EV Repair Costs, Insurance & Warranties
 Written & Edited by Fran Majidi Fran MajidiFran Majidi manages content on SmartFinancial's website. She's had nearly a decade's worth of experience writing about i... Read more |
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The average post-accident EV repair costs are $6,066, compared to $4,703 for a gas-powered car. [1] You won’t have high maintenance costs for an electric vehicle (EV), like you do in regular oil changes with an internal combustion engine (ICE) vehicle, but EV repair costs are another story. Certain EV makes and models are significantly more expensive to fix than others, and a huge factor is the EV battery repair costs. Also, in a direct comparison, EVs do cost more to repair than ICE, but mainly in the case of collisions. The average crash-related repair costs for EVs were $950 more than costs for gas-powered cars but only $269 higher for non-Tesla EVs. [3] Here’s everything else you need to know about the cost of EV repairs, insurance coverage and warranties on EVs.
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Key Takeaways
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EV Repair Costs Vs ICE: Why Are EV Repair Costs Higher?
Most people think that EVs EV repair costs are higher because of an intricate battery, but it’s more complicated than that and it involves parts and labor. Also, there is not much difference in repair costs between EVs and gas-powered vehicles of the same age and price range. However, repairs are significantly more costly for EVs after collision-related events. Even then, only by about 2% more. [2] There are a few reasons why EV repair costs vs gas cars repair costs are higher on average. Here are the following reasons.
Repairs: EV Parts Vs Gas Car Parts
It’s not just the battery that costs more. It costs 30% more to repair an EV after an accident than its gas-powered equivalent. [1] Unlike ICE vehicles, most of which have been on the market for years, EV parts are limited and technicians usually have to use original equipment manufacturer (OEM) parts. OEM parts, as you may know, are more expensive than recycled parts or aftermarket parts. [1]
EVs also have more advanced technology, which is more expensive to repair. Some hardware can’t be repaired, only replaced, which always costs more.
Repairs: EV Labor Costs Vs. Gas Car Labor Costs
Labor for skilled technicians who know how to work on EVs also means higher overall cost of repairs. Not only is the wage more expensive, the hours are more intensive as well. Compare 3.04 hours for an EV versus 1.66 hours for a gas-powered vehicle. [1]
The reason why the labor takes more time on EVs is that the battery needs to be de-energized, which often means fully removing the battery, before doing repairs. The battery then needs to be reinstalled. [1]
EV Battery Repair Costs
Some say it’s a myth that EV batteries can’t be repaired while others insist it’s too dangerous. Regardless, technicians do repair some EV batteries, if the owners decide not to replace them.
A Tesla battery repair is possible but Teslas are known for easily being totaled due to battery damage. As noted earlier, Tesla batteries are also difficult if not impossible to repair because they are non-modular batteries.
With other EVs, you are looking at repair costs in the thousands, maybe more than half the cost of replacing the battery, usually due to labor costs. Car owners often opt to replace the battery entirely.
Warranties will not cover the cost if the problem is due to a car accident. Only car insurance will cover collision-related claims (more on this below).
EV Battery Replacement Costs
Non-Tesla batteries can cost $10,000 on average. A Tesla battery replacement may cost $16,500 to $20,000 or even more, with labor and miscellaneous parts included. Batteries for Tesla are covered under manufacturer’s warranty so you would file a warranty claim if the battery malfunctions or degrades by 71% or more during the warranty period.
Tesla warranties cover eight years or 120,000-150,000 miles, whichever comes first, and the mileage restrictions vary on models.
If the battery needs to be repaired or replaced due to a car accident, warranty will not cover the expense. You’d have to file a car insurance claim for a collision coverage payout if the accident was your fault. If the accident was the other driver’s fault, their liability coverage would pay for the replacement.
Total Losses on EVs Vs ICE
Total losses of EVs and gas-powered cars were about the same. It’s important to note, however, that most insurers are more apt to declare a Tesla a totaled car because the EV battery is not modular, like many other EVs. This is because when you damage a Tesla battery and it gets damaged, it has to be replaced, whereas modular batteries can be repaired. [1]
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9.93% of damaged EVs are total losses.
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9.51% of damaged internal-combustion-engine (ICE) cars are total losses.
Does Car Insurance Cover Total Loss on an EV?
It’s misleading to say that EVs are total losses after most accidents, but their rate is higher. The total loss rate for EVs was 7.25% of claims, compared with 8.49% of ICE vehicles. Car insurance will pay out the total loss of an EV just as it would a claim for a gas-powered vehicle. [3]
A warranty will never cover losses from an accident, but car insurance will.
Which EV Repair Costs Will Insurance Cover?
Property damage claims are about 4% higher for EVs, because they tend to be heavier vehicles and have greater impact, thereby causing more damage. [2] This is not great news for insurance rates for EV drivers who cause an accident, but the good news is that EVs are involved in 19% fewer claims than ICE.
Do Warranties Cover EV Repair Costs?
Warranties will cover non-accident related losses but these, too, have limits and exclusions, much like a car insurance policy. For example, a quickly degrading battery may be covered with a warranty, up to limits and depending on its age.
Which EVs are the most expensive to fix?
You’ll be surprised to find out that Teslas are not the most expensive to fix. They may get totaled more frequently, because battery damage may call for battery replacement, but other EVs rank higher in terms of costly repairs. See how they fare, below.
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Lucid Air
Not only does the maker boast having the longest range for an EV, it’s more expensive to fix– to the tune of $2,510 for an average five-year repair cost. [4]
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Mercedes-Benz EQS SUV
While the annual repair cost of this luxury vehicle is less than $1,000 a year, its five-year repair cost is about $2,510, matching Lucid Air as the most expensive. [4]
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Audi Q4 e-tron
Tying with Lucid Air and Mercedes-Benz EQS SUV, the Audi Q4 e-tron is one of the most expensive luxury EVs to fix with a usual five-year repair cost of $2,510. [4]
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5.Porsche Taycan
Another expensive EV to insure is the Porsche Taycan, which has an average five-year repair cost of $1,436. [4]
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Tesla
We’ve discussed the issue of the Tesla batteries causing high repair costs. For the Model S, the five-year repair cost is roughly $1,224. [4]
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Fran Majidi manages content on SmartFinancial's website. She's had nearly a decade's worth of experience writing about insurance-related topics. Prior, she was an arts and entertainment editor in New York City. She has a B.A. from Barnard College and an M.F.A. in writing from The New School.
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