Electric Vehicles: Why Insurance Is Getting More Complicated
Electric vehicles (EVs) are now firmly part of the transport infrastructure across Northern Ireland. In 2025, around 20.4% of all new cars registered in Northern Ireland were fully electric, meaning roughly 1 in every 5 new cars sold was a battery electric vehicle.
However, while EVs offer lower running costs in many cases, insurers are increasingly focused on the cost and complexity of claims, which is influencing pricing across the market.
What’s driving higher costs?
Insurers are seeing a number of emerging factors that can increase claim severity for EVs
Repair complexity and battery-related damage
EVs use high-voltage battery systems and specialist components, making repairs more complex and requiring additional safety procedures. These systems may require additional safety considerations if damaged, including specialist handling and assessment.
Battery damage and high value components
EV batteries are typically one of the most expensive parts of the vehicle. Damage to them may not always be immediately visible but can still create underlying faults that increase the risk of failure. From an insurance perspective, this may contribute to higher claim severity and, in some cases, lead to a vehicle being written off rather than repaired. Additionally, lithium ion batteries may present additional risks in certain circumstances, particularly where damage is not immediately visible, which insurers may assess as part of their wider risk review
Shortage of qualified EV repair technicians
Working on electric vehicles requires specialist skills, tools and training, which are still developing across the repair sector
Longer repair times and operational disruption
The additional complexity of EV repairs and the need for specialist handling can extend repair times, impacting fleet availability and business operations
Parts availability and supply chain delays
As EV technology evolves rapidly, sourcing specific components, particularly batteries, can add further delay to repairs
These factors may contribute to higher average claim costs, even where day‑to‑day running costs may be lower.
What this means for premiums
Motor insurers are already facing rising claim costs across the market, driven by increasing repair costs and labour shortages.
As EV adoption grows, these pressures are being reflected in underwriting and pricing models. While EVs bring clear environmental and operational benefits, insurers are still refining how they assess risk, which can result in:
- Higher premiums in some cases
- Increased scrutiny of vehicle types and repair arrangements
Over time, repair networks may mature and claims data may become more established, which could support greater pricing consistency. However, in the short to medium term, some pricing volatility may remain.
Where insurance fits in
The shift to EVs is not just a sustainability decision, it’s a risk and insurance consideration. Businesses may wish to review how their insurance programme responds to evolving exposures, including*:
- Motor cover and indemnity limits: considering whether limits remain appropriate in light of higher repair costs
- Loss of use considerations: as vehicles may be off the road for longer during repairs
- Claims management processes: including access to approved EV repair networks
- Hire and replacement vehicle costs: as longer repair times can increase temporary vehicle and credit hire expenses
Why it matters now
For many organisations, EV adoption is developing at pace while insurers continue to build experience and data in this area. This may create a gap between:
- Operational reality (rapid EV uptake)
- Insurance maturity (evolving pricing and claims experience)
- For fleet operators, this may mean placing greater focus on managing risk, downtime and repair strategy alongside day-to-day vehicle management.
If you have an EV or thinking of getting one, speak to us. We’ll help you understand the best options for you and your family.
