As electric vehicles (EVs) gain popularity, car insurance providers face increasing repair costs compared to traditional internal combustion engine (ICE) vehicles. Several factors contribute to this trend.
- Specialized Repair Skills: EVs require unique expertise for repairs, particularly concerning their complex electrical systems and battery technology. Technicians need specialized training to safely handle high-voltage components, increasing labour costs and repair times—factors that directly influence car insurance claim payouts.
- Costly Parts and Components: EVs often contain expensive parts, particularly their battery packs, which can be significantly more expensive than ICE vehicle components. For instance, a battery replacement can cost anywhere from 200,000 Baht to 600,000 Baht and more, depending on the model. Damaged battery modules often require entire unit replacements, driving up repair costs.
- Limited Repair Options: The availability of repair facilities equipped to handle EVs is still limited compared to those servicing ICE vehicles. This scarcity can lead to longer wait times for repairs, increased labour costs, and potential use of costly specialized parts.
- Advanced Technology: Many EVs come with sophisticated technology, such as advanced driver-assistance systems (ADAS). Repairing or recalibrating these systems after an accident can add significant costs to an insurer’s bill.
In summary, the combination of specialized labour, expensive parts, limited repair options, and advanced technology makes EV repairs more costly for insurers compared to ICE vehicles, impacting premiums and the overall cost of ownership for consumers.
The Future of EV Car Insurance in Thailand
While these costs currently drive up premiums, they are expected to diminish as EV adoption grows and repair infrastructure expands. This aligns with Thailand’s government goals for EV adoption, making car insurance for EVs more affordable over time.
