A new study by the German Insurance Association (GDV) challenges some entrenched, widely shared preconceptions about electric cars (EVs) being more accident-prone than cars with a classic combustion engine (ICE). They are equal in accident frequency and damage, GDV says.
And the gap in actual repair costs after an accident is currently shrinking, averaging now 15% to 20% more than for similar ICE models. A year ago, the difference stood at 20% to 25%.
Why is the difference shrinking? As more EVs are on the road, mechanics, tow trucks, emergency services, and insurance assessors now have more experience fixing them. This experience makes repairs faster and cheaper (e.g., less time isolating batteries, better spare parts availability).
Adverse general preconception
However, the general preconception is adverse, based on various insurers and studies, especially from the UK and US, suggesting higher claim frequency or more accidents among EVs.
They cite insurance data indicating EV drivers have accidents more often, with higher repair costs, linked to expensive components like batteries and advanced technology. Driver behavior factors, such as quick acceleration or unfamiliarity, lead to more, but mostly minor, collisions.
Axa Belgium claimed in a 2022 study that EV drivers were reportedly 50% more likely to cause collisions than drivers of petrol or diesel cars.
The main culprit? The quicker acceleration of EVs surprises those switching from a classic ICE car, who are unaware of the responsiveness of EVs, resulting in more accidents.
EV insurance more expensive
However, no other Belgian insurers were found to have published data or statements suggesting EVs cause more accidents. Still, the risk analysis they use often leads to higher premiums for EVs. Just a few days ago, Belgian media cited a study comparing insurance premiums of EVs versus ICE.
“Insuring an electric car costs on average €148 more per year than insuring a petrol car in the same price category,” said David Geerts from the comparison platform Peasy, based on a comparison of the five largest insurers.
On the other hand, KBC Brussels, for instance, explicitly stated that insuring an EV is not more expensive than a fossil‑fuel vehicle and even offers some favorable terms for newer models, thanks to advanced safety features.
Repairing batteries vs replacing
Many European insurers (including Belgian ones) are factoring in battery replacement risk and specialized labor costs when pricing EV coverage.
But there is hope. Yesterday, news broke that the world’s biggest battery maker, CATL, has launched CTP-battery repairs in China via its Ning Service independent aftermarket brand, costing only a fraction – typically only 10 to 20% – of a complete battery pack replacement.
Affordable battery repair can be a Total Cost of Ownership (TCO) game-changer for electric cars, reducing depreciation, preventing catastrophic repair bills, and improving resale value.
Why EV repairs cost more
Why do EV repairs still tend to cost more in Europe and the US? The battery is the most costly component of an EV, sometimes 30–50% of the car’s value. Even minor damage near the battery (e.g., after hitting a curb and a battery housing is dented) can require full inspection or replacement.
Another cost factor is special safety procedures. Damaged EVs often require isolation of the high-voltage system before repairs. This means trained technicians, special tools, and sometimes a waiting period to ensure the battery is safe to work on. More time in the workshop means higher labor costs.
On top of that, EV-specific parts (like battery cooling plates, power electronics, charging ports) are less common than ICE-car parts. Limited supply means higher prices and longer repair times.
More EVS, more experience, lower costs
The good news, the GDV study finds, is that as more EVs are sold, parts will become cheaper, more mechanics will be trained, and insurers will develop more straightforward repair guidelines — all of which are already narrowing the cost gap.
The GDV compared 53 EV model lines with similar gasoline/diesel counterparts, evaluating damage frequency and claim amount over three years. For example, the Volkswagen Golf VII (gasoline) vs e-Golf (electric) or Smart ForTwo (gasoline) vs Smart EQ (electric), they say.
They made sure to compare cars of similar age and from similar usage patterns. The study is based on millions of insurance cases from the GDV, which means it reflects real-world accident data, not just lab tests.
As of January 1st, 2025, 1.65 million electric passenger cars were registered in Germany. Since 2021, the number has more than increased fivefold. Overall, electric vehicles currently account for 3.3 percent of passenger cars in Germany.
