Electric Vehicles: The Cost of Collision Damage
Electric vehicles (EVs) are known to be cheaper to own due to lower fuel and maintenance costs. However, when it comes to collision damage, the story is different. Many damaged EVs end up getting totaled by insurance companies instead of being repaired. This issue is not limited to Tesla, as other brands like Lucid and Rivian seem to have similar problems.
Factors Driving Up Repair Costs
Tesla and other new EV brands have several factors that drive up the cost of repairing collision damage. Firstly, they are luxury vehicles, which increases repair costs. Secondly, aftermarket options for parts are scarce. Thirdly, these highly-technical machines have a number of sensors in areas prone to damage like the bumpers.
The Shocking Cost of EV Battery Replacement
Another significant issue with some Teslas is their integrated battery packs. If one of these is damaged, there is no way to repair it, and the car goes straight to the salvage lot. It’s worth noting that both CEO Elon Musk and Tesla in general seem to understand the need to drive down the price of repairs.
Anecdotal Evidence
Earlier this year, a study by two major salvage companies found that a “vast majority” of Tesla Model Ys that were totaled had less than 10,000 miles on the odometer. However, they did not provide information on how many of these vehicles had unquestionably irreparable damage.
In an anecdotal example, Tesla-centric YouTuber Ryan Shaw reported that a fender bender that damaged his rear bumper resulted in a bill of $8,701.33. In a second rear-end collision, his Tesla was so badly damaged that it couldn’t drive away. The cost of completely repairing the car came in at $23,614.
Elon Musk’s Take
CEO Elon Musk has called the costs of repairing Teslas “unreasonably high” and lamented the situation that Tesla owners can sometimes be in. “So if you’re waiting for a part to get repaired and that part takes a month, now you’ve got a month of having to rent another car. It’s extremely expensive,” Musk said in January. “And, of course, you’re missing the car that you love and the one you actually want to drive. So this has actually a very significant effect on the total cost of ownership and customer happiness.”
Conclusion
Until a long-term solution is found, high-end EV owners, and especially Tesla owners, are at the mercy of insurance companies and repair facilities should they be in an accident. For those considering the purchase of an EV, it’s worth taking into account the potential cost associated with collision damage before making a purchase.