Internal combustion engine (ICE) vehicles are most commonly involved in front-end collisions which are, on average, 40% costlier than those involving rear-end impacts, according to Mitchell International’s Q3 “Plugged-In: EV Collision Insights” report.

Based on Mitchell data, internal combustion engine (ICE) vehicles have a higher frequency of front-end impact at 31.59% compared to battery electric vehicles (BEVs) at 25.88%, which are more likely to sustain rear-end damage (35.98%) than ICE alternatives (27.57%).

Mitchell found that the difference in point-of-impact dynamics is likely due to two main factors: newer average model year, meaning more comprehensive, front crash avoidance technologies, and different braking dynamics for BEVs when driving in single-pedal mode (using the accelerator pedal for acceleration and braking), which may result in more rapid deceleration than expected by the driver.

“There’s a direct correlation between the primary point of impact and claims severity,” said Ryan Mandell, Mitchell’s director of claims performance, in a news release. “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.”

Claims frequency for repairable collision-damaged BEVs rose to 3.01% during Q3 in the U.S. and 3.97% in Canada, an increase of 47% and 26% respectively, year-over-year, according to the report.

Q3 average claims severity in the U.S. was $5,560 for BEVs, $5,229 for plug-in hybrids, $4,426 for mild hybrids, and $4,741 for ICE vehicles. In Canada, it was $6,923 for BEVs, $6,171 for plug-in hybrids, $6,366 for mild hybrids, and $5,615 for ICE automobiles.

As price parity increases between BEVs and ICE vehicles, similarities in total loss outcomes are being created, according to Mitchell.

The average total loss market value for BEVs was $32,718 in the U.S. and $41,380 in Canada during the quarter.

For 2021 and newer ICE vehicles — which are comparable to BEVs in their complexity and cost to repair — the average total loss market value was $31,070 in the U.S. and $42,498 in Canada. Total loss frequency was also nearly identical between automobile types with BEVs totaling at a rate of 9.9% in the U.S. and 10.11% in Canada while newer ICE vehicles totaled at a rate of 9.98% in the U.S. and 11.74% in Canada, according to the report.

The U.S. keys-to-keys cycle time average year-to-date is 19.5 days for BEVs versus 16.5 days for ICE alternatives, or an 18% difference.

In Canada, the average cycle time is 20% longer for BEVs (17.2 days) compared to ICE vehicles (14.3 days). The average cycle time for mild and plug-in hybrids also exceeds that of ICE vehicles in both countries.

“Lately, automotive manufacturers seem to favor hybrids with companies like Ford transitioning some manufacturing plants to plug-in platforms rather than full BEV powertrains,” Mandell wrote in the report. “However, headwinds appear to be forming for wider spread PHEV adoption as J.D. Power reported that, ‘PHEVs score significantly lower than BEVs in nine of the 10 categories tracked in the J.D. Power 2024 U.S. Electric Vehicle Experience Ownership Study, particularly when it comes to battery range and total cost of ownership.'”

Mandell noted in the Q2 EV Collision Insights report that BEVs remained more expensive to repair compared to ICE vehicles while BEV claims frequency also continued to rise.

During Q2, 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 Wall Street Journal recently reported the cost of vehicle maintenance and repairs has increased by 28% over the past three years, and is caused by inflation and more complex repairs of vehicles with sensors.

“Getting into a fender bender can be a mind bender these days,” the article says. “That little dent, bump, or scrape seems pretty minor until you’re hit with the real damage: the bill.”

Mitchell told the newspaper that the average repair cost for an insurance claim was $4,721 during Q2 2024, about $800 more than three years ago.

“In 2024, some 26% of repairs associated with insurance claims have included recalibrating sensors, up from 5% in 2020, per Mitchell,” the article says. “Recalibrations add an average cost of $500.”

A Bank Rate article noted that advanced driver assistance systems (ADAS), which rely on sensors, cameras, and radar, can reduce the risk of a crash by as much as 50% but also will increase claims.

Tony Cotto, director of Auto and Underwriting Policy at the National Association of Mutual Insurance Companies (NAMIC), told Bank Rate that the cameras and sensors that ADAS relies on are located on the outside of the vehicle and thus are more likely to be damaged in a crash.

“You can’t just replace the camera,” Cotto told Bank Rate. “You have to calibrate it. In order to calibrate it correctly, the mechanic has to spend additional time on that repair and the calibration, and they may need additional equipment, which shops have to invest in.”

While calibrations increase the cost of a repair, an improper calibration could cause an ADAS feature to malfunction, leading to a higher risk of a future crash, Cotto said.

“The cost to repair and replace components is up; the cost to insure them is going to follow,” Cotto said in the article.

Images

Featured image: A Rivian EV with front-end damage at K&M Collision in Hickory, North Carolina (Lurah Lowery/Repairer Driven News)