EV collision trends and cost disparities continue to rise

Repairable battery electric vehicles (BEVs) tend to sustain more rear-end damage, are costlier to repair and take longer to get back on the road compared to internal combustion engine (ICE) vehicles, according to Mitchell’s Q3 2024 Plugged-In: EV Collision Insights report.

The report, released by Mitchell, a technology and information provider for the property and casualty claims and collision repair industries, examined the differences in collision patterns, repair costs and cycle times between BEVs and ICE vehicles.

Collisions involving front-end damage are the most common and are 40 per cent more expensive to repair, on average, than rear-end impacts. According to Mitchell, ICE vehicles are more likely to sustain front-end damage (31.59 per cent) than BEVs (25.88 per cent), while BEVs are more frequently involved in rear-end collisions (35.98 per cent) compared to ICE vehicles (27.57 per cent).

“There’s a direct correlation between the primary point of impact and claims severity,” said Ryan Mandell, Mitchell’s director of claims performance. “Even though overall severity remains higher for BEVs than for ICE vehicles, understanding these point-of-impact dynamics can help auto insurers better assess risk, manage claims and assist policyholders.”

In Q3, collision claims frequency jmped to 3.01 per cent in the U.S. and 3.97 per cent in Canada, representing year-over-year increases of 47 per cent and 26 per cent, respectively.

In Canada, average severity for BEVs was $6,923 for BEVs, $6,171 for plug-in hybrids, $6,366 for mild hybrids and $5,615 for ICE vehicles. Average claims severity for BEVs in the U.S. was $5,560, compared to $5,229 for plug-in hybrids, $4,426 for mild hybrids and $4,741 for ICE vehicles.

As BEVs and ICE vehicles get closer to price parity, the result is comparable total loss outcomes. The average total loss market value for BEVs was $41,380 in Canada, compared to $42,498 in Canada for newer ICE vehicles. Those numbers were $32,718 in the U.S. and 31,070 in the U.S.

Total loss frequency was nearly identical: 10.11 per cent in Canada and 9.9 per cent for BEVs in the U.S., versus 11.74 per cent and 9.98 per cent and for newer ICE vehicles.

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