Australia’s Mechanic Shortage Leading to EV Write-Offs After Minor Accidents
Lack of Parts and Outdated Laws Adding to Repair Delays and Rising Premiums
A shortage of skilled mechanics, limited availability of parts, and outdated regulations are forcing Australian insurers to write off electric vehicles (EVs) after minor accidents rather than repairing them. This trend is contributing to increased insurance premiums and unnecessary waste, despite ongoing efforts to expand the local EV market.
Although supply constraints have impacted EV availability in Australia—partly due to the absence of a fuel-efficiency standard—the economic realities of insuring these vehicles continue to drive up costs for owners. Insurers are more likely to scrap an EV compared to a petrol-powered car with similar damage, largely due to complexities associated with battery repairs.
A Skills Shortage Holding Back EV Repairs
According to Matt Hobbs, CEO of the Motor Trades Association of Australia (MTAA), the industry lacks sufficient trained mechanics to handle EV repairs.
“The need to upskill the industry has been a long-standing issue,” Hobbs said. “Even minor repairs require a mechanic with specialised autoelectrician training to safely work on an EV battery or its casing.”
EV repairs can be particularly challenging because damage to high-voltage batteries requires careful handling. Mechanics must depower, remove, and re-energise the battery safely before carrying out repairs, adding complexity and cost.
Upskilling a mechanic to work on EVs costs between $5,000 and $7,000 in Australia. The MTAA is advocating for adjustments to the government’s new energy apprenticeship program to help address this skills gap.
Limited Repair Facilities and Part Availability Causing Delays
Only about 10% of repairers in Australia are certified to service EVs, according to the Australian Automotive Service and Repair Authority. In the United Kingdom, where a similar percentage of mechanics are EV-certified, insurers are also frequently writing off vehicles after seemingly minor crashes, according to Bloomberg.
The Insurance Council of Australia (ICA) has acknowledged that local insurers face similar challenges. The shortage of mechanics not only extends repair times but also forces some EVs to be transported over long distances to the nearest suitable repair facility, further inflating costs.
Additionally, the availability of spare parts remains a significant issue, particularly for newer EV brands entering the Australian market. Many spare parts are not locally stocked, prolonging repair timelines. Some local regulations also restrict when and how EVs can be repaired, further complicating the process.
Battery Damage and Insurance Write-Offs
An industry source revealed that some EVs are being scrapped due to minor battery damage, such as surface scratches, even when the internal cells remain intact. If a certified technician cannot access diagnostic data to confirm the battery’s safety, the vehicle may be written off by default.
Behyad Jafari, CEO of the Electric Vehicle Council, noted that earlier regulations were even stricter.
“Previously, nearly any crash could lead to an EV being written off simply because of battery concerns,” Jafari said.
Industry groups and insurers have worked with regulators in recent years to expand the conditions under which EVs can be repaired. However, the Electric Vehicle Council continues to push for more flexibility, arguing that mechanics and insurers should have greater discretion in determining repair feasibility.
The ICA has also called for regulatory changes to allow more EVs to be safely repaired rather than scrapped.
Insurance Costs and the Road Ahead
Insurance premiums for EVs are rising due to battery-related complications and higher repair costs. Since EVs are generally more expensive to purchase than petrol cars, insurance costs are further amplified.
Industry analyst Danny Martin from IBISWorld stated that insuring an EV costs, on average, 18% more than covering an internal combustion engine vehicle. However, the EV sector argues that these increased premiums are unfair, as EVs require significantly less servicing over their lifetime when they are not involved in accidents.
Steven Du, NSW representative for the Tesla Owners Club of Australia and vice-chair of the Australian Electric Vehicle Association, noted that repair wait times have improved over the years.
“A few years ago, an EV repair could take months,” Du said. “Now, depending on the brand, repairs can be completed much faster.”
He acknowledged that Tesla owners tend to experience shorter wait times due to the brand’s market share and greater availability of spare parts.
EV owners remain concerned about premature write-offs and the ongoing skills shortage. “If we don’t take action, we’ll be left with stranded vehicles,” Du warned.
As the Australian EV market grows, the pressure to address these challenges will continue to mount. Investing in mechanic training, improving spare parts availability, and updating regulations will be essential to ensuring that EVs are not unnecessarily scrapped, keeping insurance costs manageable for owners.