A recently published German study reveals that electric vehicle repair costs are falling as EV adoption increases and electric cars become more common. The research found that the gap between electric vehicle and internal combustion engine (ICE) vehicle repair costs has narrowed over the past year, indicating that insurers and repair shops are gaining much-needed experience in the growing EV repair segment.
When battery electric vehicles (BEVs) first launched, the scarcity of technicians with EV repair experience, coupled with high insurance coverage costs, made repairing electric cars prohibitively expensive.
Most mechanics had never worked with electric cars, and the few who could repair EVs were in high demand, allowing them to charge premium prices for their services. With some EVs requiring manufacturer support during repairs, costs could rise even higher, prompting insurance companies to charge electric vehicle drivers higher premiums.
But as EV adoption has accelerated, more mechanics and repair shops have gained the technical expertise needed to work on electric cars, increasing the pool of technicians offering high-quality EV repair services.
According to the German Insurance Association (GDV), electric vehicle insurance claims were around 20-25% higher than claims for gas-powered cars in 2024. However, as repair services become more accessible and less costly, insurers have less incentive to charge high premiums for electric cars, bringing EV-related repair costs down further.
Anja Käfer-Rohrbach, Deputy General Director of the German Insurance Association, notes that the recent decline in electric vehicle repair costs signals that service providers and vehicle workshops are gaining essential experience with EV systems.
The increased variety in electric vehicle models, coupled with rising adoption, has granted them valuable practical experience and aided in reducing EV repair costs. Even so, electric vehicle drivers still pay higher repair costs compared to ICE vehicle drivers, largely due to the specialized skills required for battery electric cars, high EV component prices, complex electric vehicle technology, and limited repair options.
Electric cars still represent a small portion of vehicle sales, and with most U.S. EVs concentrated in specific urban regions, the vast majority of workshops outside traditional EV hotspots have little to no experience with core electric vehicle repairs.
These shops lack equipment to handle battery pack issues, drive unit failures, or complex high-voltage electrical diagnostics. This creates significant repair deserts for EV owners who travel outside urban corridors or live in areas with lower adoption rates, reinforcing reliance on manufacturer-specific service centers that critics often cite as a drawback to EV ownership.
The disparity represents a key challenge for the EV ecosystem as it expands beyond early-adopter strongholds. EV repair costs may be declining in areas with established EV infrastructure, but the geographic inequality in service availability continues to limit broader adoption. As the industry matures, addressing this service gap will be crucial for making electric vehicles a practical choice for all drivers, regardless of location.
Perhaps EV makers like Bollinger Innovations, Inc. (NASDAQ: BINI) could work with other industry actors to come up with collective approaches to deepen access to affordable repair services so that this aspect contributes to popularizing BEVs.
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