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Repairer shortage condemns electric vehicles to scrapheap

A lack of certified repairers is leading to electric vehicles being written off with only minor damage rather than fixed, industry experts say.

Motor Trades Association of Australia CEO Matt Hobbs told insuranceNEWS.com.au only about 10% of the nation's repairers are certified to service electric vehicles.

“We just don’t have enough people who are skilled in our industry,” he said. “There’s another level of qualification that people have to get. A lot of independent workshops need to upskill.

“We’re going to have about 2 million electric vehicles on the road by 2030 and the Government’s looking to accelerate the number, so there’s a lot to be done. This is a structural adjustment.”

Cars have been written off due to scratched battery packs, even when the cells inside are probably undamaged, because of a lack of diagnostic information, experts say.  

Mr Hobbs says there is a high rate of electric vehicle write-offs overseas too, especially after collisions in which the battery is impacted. 

“To replace a battery is a huge undertaking, especially if it’s damaged, and the costs associated with that often lead to a higher rate of write-off. If we’re going to have so many more of these vehicles, we just need to make sure we get ready for it.”

The Insurance Council of Australia wants legislative reform to enable more vehicles – including electric cars – to be safely repaired instead of scrapped. It told insuranceNEWS.com.au its members are advocating for upskilling mechanics and government subsidies for electric vehicle technician training. 

“There are few electric vehicle service centres and specialty tradespeople to fix any damage, which may mean damaged vehicles would have to be transported for repair. All this adds to repair cost and is therefore reflected in higher insurance premiums,” a spokesperson said.

“Electric vehicles are generally of higher value than equivalent combustion engine cars, and generally have more complex systems and components, specifically their motor parts and batteries, than other vehicles.”

Repair management group AAMC’s Strategic and Relationship Manager Daniel Lukich told insuranceNEWS.com.au electric vehicles are “still a bit of an unknown quantity” and insurers are "probably giving the benefit of the doubt in writing it off rather than fixing it because the client will get their car faster. There are only a handful of repairers that have the know-how and the technology to do it. When it's been towed away and there’s structural damage, there’s a bit of an unknown quantity.

“If it’s going to take two or three months for the parts to come in and be available to be repaired ... they might choose the total loss of car and get the ... claims closed.”

Mr Lukich says when an electric vehicle is a total loss, the salvage value for insurers is only about 8-10% of the replacement figure.

“You can't recycle the battery as yet and no one's buying them for parts or trying to repair a total loss vehicle, so insurers are not only probably writing more off as a percentage, but they’re also being hit the other way because they’re not getting a lot of return on the salvage.”

The job fill rate for electric vehicle technicians is just 41%, according to a recent Motor Trades Association of Australia and Deloitte report.

Mr Hobbs says to safely work on the cars, it is essential service staff undertake core electric vehicle training modules. 

“Even if you aren’t doing anything with the battery, you’ve got to know how to depower the electrical system because that’s 400 volts,” he said. “We need to make sure people are safe.”


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