New research from FWD Consulting reveals that UK businesses may be facing more than £461 million annually in electric vehicle (EV) write‑off costs, driven by limited national repair capacity and growing commercial-fleet collisions.
The findings come at a time when EV adoption across the UK is accelerating rapidly, making the challenge all the more urgent for insurers and fleet operators alike.
According to data from the Society of Motor Manufacturers and Traders (SMMT), electric cars accounted for 19.6% of all new UK car registrations in 2024, a record share and up from 16.5% in 2023. Battery-electric vehicles remain the fastest-growing segment, with nearly 382,000 new BEVs registered in 2024.
Despite this growth, FWD Consulting warned that repair infrastructure, particularly for battery‑electric vehicles, is not keeping pace. About one in five EVs involved in a collision are being written off, even after relatively minor impacts. Insurers are often forced to declare total loss because many lack access to battery‑safe diagnostics and repair capacity, making replacement the default outcome.
Given the rising number of EVs on the road, and especially the increasing share in commercial fleets, the impact on insurance claims is substantial. The write-off costs hit fleets directly, while insurers face heightened claims severity, increased loss ratios and growing uncertainty over repair vs replacement decisions. For fleets, write-offs add pressure on total cost of ownership, undermining one of the key economic arguments for electrification, according to the research.
"Collision write-offs are rising at a scale that neither fleets nor insurers can absorb long-term," said Julian Green, head of research at FWD Consulting. "Without rapid investment in specialist EV repair capability and clearer guidance on battery diagnostics, we risk undermining confidence in the shift to electric fleets."
Encouragingly, efforts are emerging to address this gap. Recent investment from firms like Cox Automotive and DHL Supply Chain has resulted in the opening of a 35,000‑square‑foot EV battery repair and remanufacturing centre in Rugby, a sign that supply‑side capability may begin to catch up.
FWD Consulting concluded that broader collaboration between manufacturers, insurers and policymakers will be essential. Expanding national battery‑safe repair capacity and establishing consistent standards for EV damage assessment could significantly reduce write‑offs, ease pressure on insurers, and boost confidence among companies converting to electric fleets.
As EVs now represent a growing and material proportion of the UK’s vehicle parc, insurers and fleets will need to adjust underwriting assumptions, claims protocols and risk management strategies. Without infrastructure improvements, the full benefit of electrification may be undermined - both financially and operationally - for businesses and insurers alike.
