Major supermarket brand won’t insure EVs anymore… it’s too expensive – here’s why
A MAJOR supermarket brand has stopped insuring EVs because it is too expensive.
The beloved retailer will now only offer insurance to traditional cars amid surging costs.
John Lewis has pulled its EV insurance options amid concerns over repair costs and the durability of batteries, The Telegraph reports.
Its lending arm, John Lewis Financial Services, will not be offering any new policies or even allowing existing customers to renew.
The deals will likely remain off the market until a cost analysis has been carried out by the company’s underwriter, Covéa.
EV repairs can be extremely expensive due to the complexity of the technology involved and the scarcity of parts.
The lack of a second-hand parts trade and the relatively low number of mechanics with specialist knowledge and equipment required to fix them both place upwards pressure on prices.
Damaged EVs also require around 50 times more storage space to prevent a fire risk, according to Thatcham Research.
Batteries are some of the most common problem areas but can also amount to up to half of the car’s total value.
They are common sites for damage as they are built into the floor of the car, placing them near to the road surface and any hazards on it.
A full replacement can cost anywhere between £14,200 and £29,500
According to the Association of British Insurers (ABI), vehicle repair costs have shot up by a third year-on-year since 2022, taking a chunk out of their profits.
An ABI spokesperson said: “Our members fully support the roll-out of electric vehicles and efforts to transition to net zero.
“Whether to offer insurance, and at what price, is a commercial decision for insurers based on their risk appetite.”
A spokesperson for John Lewis added: “Our underwriter has temporarily paused offering new policies and renewals on fully electric vehicles while they analyse the risks and costs entailed.”
It comes after a motors expert shared seven top tips for getting cheaper car insurance.
Meanwhile, there was an urgent warning for drivers who wear glasses over little-known DVLA rule that could see them £1,000 out of pocket.