Electric Car Repair Costs That Surprise Drivers... Insurance to Prepare For

Samsung Fire & Marine Insurance's 'New Electric Vehicle Battery Value Compensation Special Contract' Draws Attention

[Asia Economy Reporter Changhwan Lee] #. Electric vehicle driver Mr. A collided with the car in front due to his own fault while going on an outing with his family on the weekend. Mr. A filed an insurance claim and had the repair covered under his own vehicle damage coverage. However, he was surprised to be informed by the insurance company that an additional 2 million KRW would be charged out-of-pocket for battery replacement costs beyond the insurance coverage.

When a traffic accident occurs due to the driver’s fault, like in Mr. A’s case, the other party is compensated for bodily injury and property damage, and the driver’s own vehicle is handled under own vehicle damage coverage. At this time, electric vehicles are on average more than 30% more expensive to repair than internal combustion engine vehicles, due to the battery.

If the battery is damaged in an accident, partial repair is not possible and the battery must be replaced. Since the battery cost is high, the repair cost becomes expensive.

Even if you have own vehicle damage coverage, the battery’s value is depreciated according to its durability period. At this time, the insurance company does not cover the depreciation cost for replacing the battery with a new one, resulting in customer expenses.

Samsung Fire & Marine Direct Auto Insurance announced that it offers a 'New Battery Value Compensation Special Contract' to prepare for the burden on customers like Mr. A.

This special contract compensates for the depreciation amount of the existing battery according to the payment criteria when the electric vehicle’s battery is damaged and replaced with a new battery. If the repair cost including the new part exceeds the insured amount, compensation is limited to the insured amount.

A representative from Samsung Fire & Marine Direct Auto Insurance said, "To reduce the repair cost burden for customers with electric vehicles, we sell an electric vehicle plan that includes 'New Battery Value Compensation Special Contract,' 'Expanded Emergency Towing Service,' and 'Support for Transport Costs of Imported and Electric Vehicles.' Since this is an essential special contract for electric vehicle customers, it is recommended to prepare in advance with insurance to be ready for unexpected situations."