EVs Cost 20% More To Repair After Collisions Than ICE Cars
BEV Collision Claims Frequency Continues to Rise
- A new study by Mitchell reveals that BEV collision claims frequency is on the rise.
- Despite slower sales growth, BEV collision claims in the U.S. increased by 2.5% in Q2 2024.
- Repair costs for electric cars are 20% higher than for ICE vehicles in the USA.
Despite the recent slowdown in electric vehicle sales growth, the number of collision claims involving battery electric vehicles (BEVs) continues to rise in North America. While BEVs may have frames that are less prone to damage, repairing these vehicles often comes with a heftier price tag compared to traditional internal combustion engine (ICE) vehicles.
Study Highlights
A study conducted by Mitchell reveals that claims for repairable collision-damaged BEVs rose by 2.5 percent in the US and 3.95 percent in Canada during Q2 2024. This increase occurred despite a slowdown in sales, resulting in a decrease in BEVs’ market share in the U.S. from 10.2% in Q3 2023 to 9.3% in Q1 2024.
The average claim severity for repairable BEVs in Q2 2024 was $5,753 in the U.S. and CAD $6,534 in Canada. In comparison, ICE-powered vehicles had significantly lower costs at $4,806 in the U.S. and CAD $4,958 in Canada. This means that repairing collision-damaged BEVs was 20% more expensive in the U.S. and a staggering 31% more expensive in Canada compared to similarly-sized ICE vehicles.
Tesla Models Lead in Claims Frequency
When it comes to makes and models, the Tesla Model 3 and Model Y have the highest claims frequency among BEVs in both the U.S. and Canada, accounting for more than half of all cases. This can be attributed to the large number of Tesla vehicles on the road, increasing their likelihood of being involved in accidents compared to less common EVs.
Hybrids Also Experience Increased Claims Frequency
Claims frequency has also increased for hybrid vehicles. Mild-hybrids, which are similar to ICE-powered vehicles, have comparable repair costs in the U.S. However, plug-in hybrids have repair costs that are 12.5% higher than those for ICE vehicles after a collision.
Total Loss Frequency
Total loss frequency is similar between newer ICE vehicles and BEVs, with rates of 9.45% and 9.16%, respectively. This parity is driven by the growing complexity of modern vehicles, making them increasingly difficult and costly to repair.
Structural Integrity of EVs
Interestingly, while BEVs require more mechanical labor hours per appraisal on average, they are less likely to need frame repairs compared to ICE-powered equivalents. This suggests that the structural integrity of EVs might be higher than ICE vehicles, although more data is needed to confirm this.
