Battery electric vehicles (BEVs) remain more expensive to repair compared to internal combustion engine (ICE) vehicles while BEV claims frequency also continues to rise, according to Mitchell International’s Q2 2024 “Plugged-In: EV Collision Insights” report.

Claims frequency for repairable BEVs jumped by 45% in the U.S. and 39% in Canada year-over-year while increasing more gradually for hybrids.

The edition focuses on the latest U.S. and Canadian claims data on BEVs, mild hybrid electric vehicles (MHEVs), and plug-in hybrid electric vehicles (PHEVs). It highlights how differences in complexity and construction affect claim costs and repair operations.

“Although BEV sales have slowed in 2024, sales of mild and plug-in hybrid automobiles remain strong,” said Ryan Mandell, Mitchell’s director of claims performance, in a news release. “Like BEVs, these vehicles can be costlier to repair after a collision when compared to their internal combustion engine, or ICE, counterparts. However, with both an ICE and small electric battery, mild hybrids are remarkably similar to gasoline-only powered automobiles when it comes to claims severity.”

Mandell found that hybrid vehicle sales remain “robust.” He cited PwC, which reported a 69.7% increase in PHEV sales last quarter compared to Q1 2023. He also cited S&P Global which said there was a 75% increase in new PHEV registrations in Canada during Q1.

In Q2 2024, average claims severity for repairable MHEVs was $4,726 in the U.S. and $5,302 in Canada. For ICE vehicles, it was $4,806 in the U.S. and $4,958 in Canada — a difference of $80 and $344, respectively.

Since PHEVs rely on a larger, high-voltage battery in addition to a secondary ICE, their average severity is more closely aligned to BEVs at $5,059 versus $5,753 in the U.S. and $5,665 versus $6,534 in Canada, according to the report.

The total loss frequency of BEVs compared to 2021 model year and newer ICE vehicles remain similar in complexity and repair cost at 9.16% in the U.S. versus 9.45%. In Canada, BEVs and ICE vehicles stand at 7.24% versus 8.52%.

BEV collision damage estimates have a higher average number of mechanical labor hours than ICE appraisals (5.21% compared to 8.18%) but are less likely to include frame labor.

The reduced amount of frame labor on BEV estimates could mean that their design is more effective at preventing crash energy from damaging the vehicle’s structural components, Mandell wrote in the report. However, he said the statistic refers to labor coded as “frame” labor. While it likely excludes “structural” labor, it depends on how the shop or estimator writes the appraisal, Mandell said.

“This lower frequency suggests the design of EVs could be more effective at preventing crash energy from damaging the vehicle’s structural components. Although further study is needed to determine the true cause of this delta, this could be one aspect of EV engineering that bodes well for future repairability.”

OEM parts continue to be used more frequently in the repair of BEVs — they make up 89% of parts costs on estimates compared to 65% for ICE vehicles.

To view the Q2 2024 report and previous reports, visit mitchell.com/plugged-in.

A new study by J.D. Power found that public EV charging infrastructure continues to be a reason for the “unexpectedly slow” adoption of EVs in the U.S.

However, J.D. Power says it is showing signs of improvement with overall satisfaction increasing for a second consecutive quarter.

“The number of public charging stations across the country continues to grow but hasn’t matched the rate of EV sales,” J.D. Power said. “During the past several years, the rise in the number of EVs per public charging station has contributed to a declining level of satisfaction with such chargers. This year, however, customer satisfaction with the two principal methods of public charging offers a hopeful sign.”

Satisfaction with direct current (DC) fast chargers has increased to 664 on a 1,000-point scale which is a 10-point increase from the same period in 2023. Satisfaction with Level 2 charging has declined to 614 — a 3-point decrease from a year ago.

“While the customer satisfaction scores for public charging continue to prompt concern, the results offer reasons for optimism,” said Brent Gruber, J.D. Power EV practice executive director, in a news release. “Among users of Level 2 chargers, satisfaction improves in five of the 10 factors that make up overall satisfaction, and among DC fast charger users, satisfaction is up in six of the 10 categories.

“In addition, the overall indices have improved for the past two quarters. This indicates progress in many areas that EV owners care about, like the speed and availability of fast chargers and the convenience of having other things to do during longer Level 2 charging sessions.”

J.D. Power surmises that access to the Tesla Supercharger network by non-Tesla owners is one contributor to the increase in satisfaction with DC fast chargers.

Nineteen percent of EV owners surveyed for the study said they visited a charger but couldn’t charge their vehicle, an improvement of only a single percentage point from 2023. J.D. Power said the predominant problem nationwide is out-of-service or non-functioning chargers.

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Featured image: gerenme/iStock

Graphs provided by Mitchell International