Insurance companies want more data from the battery in the future, otherwise they can replace the whole pack even for a scratch.
March 21, 2023 at 8:33 am ET
According to a recent report by Reuters, insurance companies and other related experts in the auto industry fear that insurance premiums will continue to rise for electric cars. This is partly because there is still little data available from automakers about their EV battery packs and related repairs.
Insurance companies are reaching out to EV manufacturers for more data on batteries, which could make repairs safer and easier. Also, if an insurer is unsure of the condition of a battery pack, or the condition of the battery cells inside, it may choose to replace the entire pack. Thatcham Research director Matthew Avery shared via Automotive news:
“We are buying electric cars for sustainability reasons. But an electric vehicle is not very sustainable if you have to throw away the battery after a minor collision.”
We’re talking about an insurance company requiring a whole new battery pack to be installed in a car if their pack has so much as a scratch. That’s because it’s the insurer’s job to fix the car and get it back to safety.
If an insurer overlooks a battery problem after an accident, puts the car back on the road without proper battery pack inspection or repair, and later has a fire or battery-related incident, the situation could quickly expire. This could be especially true if a damaged EV battery pack previously caused injury or death.
Many EV manufacturers insist that battery packs can be repaired in some cases. However, most insurance companies simply do not have the data to back up claims. If car manufacturers don’t make battery pack data and repair information available to insurance companies, it could be assumed that if there was a problem in the future, the insurer could single out the manufacturer as guilty party
Reuters says Ford has simplified the EV battery pack repair process. In fact, each individual module can be repaired independently, which reduces costs. The battery tray can also be replaced if it is damaged on the outside.
GM and Nissan also say their electric vehicle batteries can be repaired or replaced at the module level, which is less expensive than replacing an entire pack. GM allows third parties to access its battery data, so insurers could get the information they need. However, a Nissan spokesperson did not say that the data is available, but that its franchised dealers have the necessary training and tools to properly repair the battery.
In accordance with Teslarati, Tesla usually chooses to replace the entire battery or even the entire car if there is an incident that damages the batteries. This is especially true if there is considerable damage to the EV’s body and internal electronics. Tesla does not replace battery parts or cells, and does not repair modules. Only offers full package replacement. The electric vehicle manufacturer also has its own insurance program, which makes it unique.
Interestingly, Stellantis does not allow its EV battery packs to be repaired after an accident that causes the airbags to deploy. Nor does it make its internal data available to outsiders.
While many reasons have been shared over the years why EVs may not be the best alternative, most have been debunked. In addition, car manufacturers have made improvements to ensure that most of the concerns are gone. However, this is certainly a real concern that should be addressed sooner rather than later.
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