Electric vehicle fire risk and EV insurance

Recently, there have been conflicting press stories about EVs, resulting in two camps: petrolheads and EV drivers (EV-ers). On one hand some of the mainstream press presents a dark picture of EVs catching fire; issues with charging them (due to lack of electric vehicle charge points); and expensive repairs and insurance. On the other hand, some of the auto trade publications cite their eco credentials and drop in price as the reasons to make the switch from petrol cars to EVs.

Are electric cars more likely to catch fire

It is worth bearing in mind however, that while internal combustion engines are more likely to catch fire, one of the most vulnerable aspects of an EV is the charging process. EV chargers can be susceptible to overheating or short-circuiting which can lead to the lithium-ion battery cells being in a cycle of ever-increasing temperature. The build up of thermal heat generates more heat which can lead to serious fires, the escape of carbon monoxide, and explosions. If an EV charger is not installed properly, the consequences can be dire. With a rush to add EV chargers in cities, petrol stations, and homes, grounding and maintaining them has often been overlooked.

While there aren’t as many EV battery-related fires compared to gasoline cars, when an EV does catch fire, the fire patterns, heat, and intensity of the combustion make the fire more difficult to extinguish. In fact, an EV fire can reach temperatures of over 2,000°F, burning far hotter than gas car fires which usually reach temperatures of around 1,500°F.¹

Is there a decline in EV sales?

At the start of 2026, Stellantis, the fourth-largest car manufacturer in the world and parent company of motor brands: Citroën, Vauxhall, Fiat and Peugeot, confirmed that they were reversing their decision to focus on EVs, following a downturn in EV sales to the tune of a £19 billion loss.² Struggling to convince some EU and UK drivers to transition to electric, they decided to reintroduce diesel-powered vehicles to their ranges.

Facing competition from Chinese EV car manufacturers, European auto groups lobbied the European Commission in protest at the unsustainable price wars. This resulted in the European Commission allowing some combustion-engine vehicles to be sold beyond the original 2035 cut-off date for the full transition to EVs. And now, manufacturers be required to reduce car emissions by 90% instead of the initial figure of 100%.³ This decision will hopefully reduce rising pressure on manufacturers who are already facing decreased demand for EVs and increasing competition from Chinese auto manufacturers.

The shift in focus from EVs to diesel has been rapid. Only last year in 2025, data from the European Automobile Manufacturers Association showed that EV sales accounted for 17.4% of the European market, an increase from 2024’s 13.6% share.⁴ But despite growing demand from Germany, the Netherlands, and Belgium, growth rate slowed in the UK. In fact, at the start of 2026, Reuters reported that December 2025 saw the smallest sales increase since the beginning of 2024, possibly linked to the ease up on zero-omissions rules by the European Commission.⁵

EV-ers will no doubt be dismayed by the slow down in demand, claiming that climate policies are being put on the back burner. Supporters, however, will claim that the U-turn made by the automobile industry is necessary to keep European manufacturing sustainable and protect jobs.

Why EV insurance is so expensive

According to the Electric Car Scheme, in 2026, the cost of insuring an electric car is 15-20% more expensive than for petrol vehicles.⁶ This is mainly due to more expensive repair costs and higher vehicle values.

Here are a few aspects that influence the cost of EV insurance:

Battery repairs and replacement

The battery is the most expensive component of an EV and replacing it can cost around £4,000 to £8,000,⁷ while batteries in Tesla models can cost £8,000 to £20,000.⁸

Higher repair costs and specialist labour

EVs are relatively new to the market, meaning parts may be harder to source than petrol cars. This consequently pushes the price up due to supply and demand. EVs also often contain specialised electronic systems and manufacturer-specific components that are more expensive and might also need specialist mechanics, which can increase repair costs.

Higher vehicle value

EVs tend to have a higher price tag than internal combustion engines. If your EV is stolen or damaged, it will potentially cost more to replace for the insurer, which in turn hikes up the price of insurance. Insurance premiums often increase with the value and performance of the car, regardless of whether it is electric or petrol.

Limited claims data

Because EVs are still relatively new, insurers historically have less data about accident risks and repair costs, leading to more cautious (and sometimes higher) pricing.

The gap is getting smaller

The price difference is gradually narrowing as more EVs are in use and on the road; more mechanics are trained in EV repairs; better insurance data is becoming available on EV claims; and competition is increasing among insurers.

Call 01823 761085

Call us today

Book an Appointment

Book here

Electric vehicle fire risk and EV insurance