Publié le Transition to Electric Vehicles: What impacts for the insurance sector? What measures to keep motor insurance affordable for all?
The transition to electric vehicles is underway. By 2050, more than half of all vehicles on the road will be electric or hybrid.
According to a new study released today by France Assureurs, electric and hybrid vehicles entail higher repair costs, resulting in higher insurance costs as well.
As key stakeholders in the energy and environmental transition, insurers have a major role to play in helping their policyholders adapt to the electrification of the vehicle fleet.
For this reason, the Federation is putting forward a set of proposals and announcing the creation of a “repairability index” for vehicles, aimed at keeping motor insurance affordable for all French drivers.
In response to the new challenges arising from the electrification of the French vehicle fleet, France Assureurs is committed to supporting this transition and is releasing, today, a new study that analyses compensation cost differentials between combustion-powered and electric vehicles of the same generation. An opinion poll commissioned by France Assureurs from the OpinionWay Institute offers further insight into how French people perceive the risks and impacts of electric vehicles.
The transition to electric vehicles is underway
The transition of the French vehicle fleet toward electric vehicles is firmly underway. Despite remaining somewhat uncertain due to numerous unknowns, the transition has clearly accelerated over the past five years: from just 2% of new registrations in 2019 to 18% today. Conversely, the share of combustion-powered vehicles in total new vehicle sales fell from 92% in 2019 to 28% in 2025.
According to a French agency for ecological transition, ADEME, the tipping point is expected around 2050, when more than half of the French vehicle fleet is projected to be electric (up from 2% today to 32%) or plug-in hybrid (up from 1.7% in 2025 to 22%). Meanwhile, the fleet of combustion-powered vehicles is expected to decrease from 40% in 2025 to 16% by 2050.
Repair and insurance costs are higher for electric vehicles
A France Assureurs study based on nearly two million vehicles shows that accidents involving electric cars cost insurers about 11% more than those involving combustion-powered vehicles, across all types of coverage. The cost differential reaches 14% for damage coverage and 28% for glass breakage. These differentials vary from one model to another and are notably higher for SUVs.
The higher costs are largely attributable to batteries, as their removal, diagnostics, and repair remain technically complex. So far, only half of manufacturers offer batteries that can actually be repaired. As the electric vehicle fleet ages, an increasing number of vehicles could be considered beyond economic repair.
Insurers also find that windshields and headlights on electric vehicles are, on average, 24% more expensive to replace, even though accident frequency is no higher for this type of vehicle.
Moreover, electric vehicles are significantly heavier than combustion-powered vehicles, by around 41% on average, and up to 80% for plug-in hybrids, which mechanically amplifies impact severity and, as a result, leads to higher repair costs.
Finally, the progressive electrification of the French vehicle fleet is impacting the entire auto repair sector, from diagnostics to transport and storage.
According to an exclusive opinion survey commissioned by France Assureurs from OpinionWay Institute, nearly half of French citizens are aware that repairs for electric and plug-in hybrids vehicles are more expensive, yet only 22% consider this as leading to higher insurance costs, while 35% expressed no view. Consequently, the French do not see the link between repair costs and insurance costs.
Insurers are proposing measures to ensure that motor insurance remains affordable to all
France Assureurs is committed to supporting the French vehicle fleet’s transition to electric vehicles, while working to keep insurance affordable for everyone. With this in mind, the Federation is proposing puts forward several proposals:
1. Improving battery repairability
Battery repairability should be a central criterion from the design stage onward. Therefore, France Assureurs is urging the implementation of EU standards on battery accessibility and repairability, as part of the ongoing European regulation on circularity requirements for vehicle design, which is currently being debated.
2. Guaranteeing free competition in the auto repair sector
As part of the European regulation on circularity requirements, France Assureurs suggests several approaches to maintain free competition in the auto repair sector:
- Ensuring that all franchised and independent repairers have access to manufacturers’ diagnostic tools, technical data, and repair procedures;
- Prohibiting contractual terms that limit the sale of parts (new or recycled) exclusively to manufacturers and their own proprietary networks;
- Promoting the use of recycled parts.
3. Developing a vehicle repairability index
France Assureurs announces the creation of a vehicle repairability index by SRA, a professional association affiliated with à France Assureurs. This index will be developed in collaboration with all relevant stakeholders, using factual and measurable technical elements, such as crash tests. It should be effective as soon as a new model is launched, evolve over its lifespan, and be easily understandable for consumers. This index will allow both insurers and consumers to identify and assess the impact of automotive innovations on insurance costs, with a view to preserving affordable motor insurance for all French citizens.
Mrs Florence Lustman, President of France Assureurs: “The transition of the French vehicle fleet to electric vehicles is not only essential to address the climate emergency but also presents opportunities for industrial innovation. For the transition to succeed, it needs to be socially and economically acceptable to everyone. As one of the most competitive in Europe, French motor insurance must remain affordable for all French citizens. In such context, insurers have a central role in analysing and anticipating the emerging risks associated with the electrification of the vehicle fleet. This requires in-depth dialogue with all stakeholders in the automotive sector, from manufacturers to repairers. This is why we are announcing today the creation of a repairability index, designed to better inform consumers while contributing to keeping motor insurance affordable for everyone.”
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Press Release – Transition to Electric Vehicles: What impacts for the insurance sector? What measures to keep motor insurance affordable for all? (PDF)
