Insurance Scraps 2022 Ioniq 5 After Hyundai Issues $60K Bill to Replace Battery Pack

Owners of Hyundai electric vehicles (EVs) could be in for a shock should they ever need to replace their battery pack. A nearly new 2022 Ioniq 5 in Vancouver was scrapped by insurance after the cost to replace the battery exceeded the cost of the vehicle itself, while a 2017 Ioniq owner was faced with a similar dilemma when he was told it would cost over $50,000 to replace his EVs battery.

The first incident involved a 2022 Hyundai Ioniq 5 owned by Kyle Sue, who, during a road trip, attempted to avoid an object on the road, only to later to discover damage to the battery protection cover. Despite the dealership never inspecting the actual battery, they said the battery warranty was void because of the damage on the plate, namely some scratches and a slight separation between the cover and the battery.

Hyundai insisted on an immediate replacement at a cost of over $60,000, more than the sticker price for a brand new Ioniq 5. Unable to shoulder the exorbitant cost, Sue turned to his insurance, only to be told that his nearly new EV would be written off due to the high cost.

When contacted by Motor Mouth, Hyundai Canada acknowledged varying factors influence battery replacement costs and expressed commitment to implementing a fair pricing strategy.

“This is a very rare situation and each is unique in this case. Hyundai Canada‘s customer experience team should’ve had the opportunity to assess the situation prior to costing being shared. The cost of battery replacement depends on the nature of the damage, repairs required, the type of battery, as well as the generation of the vehicle and therefore there is no one set price for every replacement. However, battery cost is a challenge for our business, which requires Hyundai candidate to continue a evaluating battery. Replacement and costing processes were working towards implementing a pricing strategy for batteries that is reasonable, fair, and in line with market competitiveness,” a Hyundai Canada spokesperson said.

This wasn’t an isolated incident however. A separate report from Ontario last month highlighted the case of Simrat Sooch, who saw his 2017 Ioniq’s battery fail at 172,345km, just beyond the 160,000km warranty. The Hyundai dealer quoted $50,000 for a new battery, installation, and taxes, leaving Sooch with an impractical repair cost that exceeded the vehicle’s value.

In that case, Hyundai Canada acknowledged to Global News that “comprehensive diagnostic tests were not completed on the vehicle” to determine if the battery needed to be replaced. As a result, Hyundai Canada said it would “resolve this situation by paying fair market value for his vehicle either in cash or towards a new Hyundai, as part of our commitment to our customers.”

That wasn’t the case for Sue however, who saw his 2022 Ioniq 5 scrapped without compensation from Hyundai. Adding insult to injury, because the car was written off he also saw all of the discounts he had been able to accumulate on his insurance disappear, resulting in the cost of his insurance doubling for the next 10 years.

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