Thatcham Research has launched a new framework aimed at reducing electric vehicle (EV) write-offs and tackling rising repair and insurance costs.
The EV Blueprint sets out eight requirements designed to ensure electric vehicles can be safely assessed, efficiently repaired and economically maintained throughout their lifecycle.
Thatcham said that while confidence in handling EVs has improved, attention has shifted to recovery, assessment and repair processes that make economic sense.
A survey conducted with the Centre for Economics and Business Research found battery-related issues remain the primary concern for 44.6% of insurers and 41.7% of repair professionals.
With batteries accounting for up to 40% of a vehicle’s total value, minor collision damage can result in a total loss, particularly as vehicles depreciate.
A roadmap for collaboration
Dan Harrowell, principal engineer for advanced technologies at Thatcham Research, said: “How affordable it is to insure these cars largely relies on how well the industry can handle repairs after accidents.
“As repair shops have become more experienced with electric vehicle technology, the costs of fixing these cars have already decreased by 10.7%.
“To continue making insurance more affordable as more EVs hit the roads, car manufacturers, insurance companies and repairers need to keep collaborating to overcome any remaining challenges.
“This blueprint provides the roadmap for that collaboration, ensuring we can deliver both the environmental benefits of electrification and the economic sustainability that consumers need.”
Two core challenges and eight recommendations
The blueprint focuses on two core challenges: post-collision diagnosis and assessment, and post-collision repair execution. It aims to reduce total loss rates, improve salvage and residual values and influence insurance premium structures.
Eight recommendations are set out, including – resettable emergency safety loops, simplified battery removal and reinstatement, accessible diagnostics comparable to existing on-board systems, robust battery protection against impacts and modular battery construction to support refurbishment and remanufacture in the UK.
Thatcham said that in the case of a three-year-old EV sustaining minor side impact damage to a high-voltage battery bracket, current mandated procedures often result in total loss because casing damage requires a new battery that can exceed the car’s value.
Under the blueprint approach, the casing could be repaired without pack removal or replaced with a lower cost refurbished unit, returning the vehicle to service.
Recent research by Generational, a specialist in battery electric vehicle diagnostics, supports the case for extending battery life.
Testing of more than 8,000 electric cars and light commercial vehicles found eight to nine-year-old vehicles retain a median 85% battery capacity, while four to five-year-old EVs show a median state of health of 93.53%. The average battery state of health across the fleet tested was 95.15% of capacity compared to new.
“This represents an achievable future state,” said Harrowell. “The vehicle returns to service promptly, the customer retains their vehicle, salvage values improve and environmental impact is substantially reduced compared to manufacturing a new battery.
“Real-world data is showing that batteries can have a very long usable life that we should try to maximise through sustainable repair.”
An industry-wide commitment is needed
Jonathan Hewett, chief executive at Thatcham Research, said the transition to electric vehicles is one of the most significant transformations the industry has undertaken, but warned it cannot succeed if EVs become “economically unviable to insure and repair”.
He said too many repairable vehicles are currently being written off because existing designs do not support efficient assessment and repair processes.
Hewett explained that the electric vehicle blueprint is based on more than a decade of in-house real-world EV impact assessments and repair procedures. He described the recommendations as “practical, evidence-based” measures to prevent three-year-old EVs being written off unnecessarily due to minor battery casing damage, adding that this undermines consumer confidence and the sustainability case for electrification.
He said the eight recommendations are “entirely achievable”, noting that similar principles already apply in conventional vehicles, including resettable safety systems, accessible diagnostics and serviceable components. “There’s no technical reason why EVs can’t meet the same standards,” he added.
Hewett said the next step requires industry-wide commitment to designing vehicles that can be “safely assessed, efficiently repaired, and economically maintained throughout their entire lifecycle”.
He added that Thatcham wants to work with vehicle and battery manufacturers to create a genuinely sustainable EV ecosystem, not only in terms of emissions but also “economically and practically for the millions of consumers who will depend on these vehicles in the years ahead.”