Over the past several years, electric vehicles have become all the rave in the auto industry, where many consumers have sought to drive the new technology. However, it became clear in the last year that there are some rising headwinds in the EV market.
Some have pointed out that EVs are more expensive on average than their gasoline-powered counterparts, which is certainly not appealing in a high-interest rate environment where household budgets have been strained from historically high inflation.
Beyond the sticker price of these vehicles, there are a lot of hidden costs associated with the ownership of EVs. The battery-powered engine often requires costly specialty parts for service, where the battery itself can cost exorbitant sums, alongside a highly specialized mechanic trained to work on EVs. It should come as no surprise that insurance rates on electric vehicles run substantially higher than on traditional combustion engine automobiles.
“Insurance costs for EVs and hybrid cars can be higher than for internal combustion engine (ICE) vehicles largely because they can be more expensive to repair and replace. For example, a new EV battery ranges between $4,000 and $20,000 depending on the make and model of your EV, compared to $100-200 for an ICE car battery. If the battery of an EV is damaged in an accident, that’s a significantly more expensive replacement cost,” according to Progressive.
“On top of more expensive parts, there also aren’t as many repair shops with technicians trained to fix electric vehicles versus traditional vehicles. That means those qualified facilities may charge more for repairs because of the specialized training required,” the insurance company added.
Aside from the most commonly cited issues surrounding impracticality and financial feasibility, there are some lesser-discussed risks of owning an electric vehicle. Headlines have dominated the media over the past couple of years, highlighting the apparent fire risk associated with EVs.
While there aren’t available statistics suggesting that EVs are more prone to fire risk, if one of these vehicles does ignite, it is substantially more difficult to extinguish than a gas-powered car. Those familiar with the matter have reportedly claimed that battery fires are extraordinarily difficult to put out where there often isn’t enough water.
Therefore, first responders typically resort to a protocol of letting the EV fire burn out on its own. However, this can be problematic if the vehicle is parked in or near a structure, where an ensuing fire that is virtually inextinguishable could easily inflict severe damage, if not destroy an entire building.
Substantiating this hypothetical scenario, The American Tribune reported on an incident earlier this year in which a Colorado couple woke up to find their garage completely engulfed in flames after their Jaguar I-Pace caught fire. Reportedly, thousands of this model have been recalled due to battery fire risk.
“Electric vehicle fires are an emerging threat across the world right now,” explained Eric Kurtz from South Metro Fire and Rescue. “Specifically when the battery pack is involved, that it can be nearly impossible to extinguish it will take 10s of 1000s of gallons to do that.”
If data is collected in the future that suggests there is an increased risk of fire in EVs coupled with the difficulty in extinguishing a battery fire, this could have far-reaching implications associated with the cost of homeowners insurance, auto insurance, and general safety.
See a video below discussing EV fires:
https://www.youtube.com/watch?v=itGeAq9rBeY&ab_channel=SouthMetroFireRescueCentennial%2CColorado
Note: The featured image is a screenshot from the embedded video.
"*" indicates required fields