Mitchell International reports that the frequency of battery electric vehicle (BEV) repairable claims increased year over year to 38% in the U.S. and 34% in Canada.

In its most recent “Plugged-In: EV Collision Insights” report, Mitchell recounts the most notable annual trends in BEV, mild hybrid electric vehicle (MHEV), and plug-in hybrid electric vehicle (PHEV) collision claims.

Following a second year of record sales for new cars with electrified powertrains claims frequency for repairable BEVs rose to 2.71% in the U.S. and 3.84% in Canada in 2024. MHEV and PHEV claims frequency also grew by 7% in the U.S. and 24% in Canada during the same period.

“In addition to an uptick in the number of claims for repairable, collision-damaged BEVs, we also saw an uptick in the number of total losses last year,” said Ryan Mandell, Mitchell’s auto physical damage division director of claims performance, in a press release. “While not unique to BEVs, this increase in total loss frequency can be attributed to the continued overall decline in vehicle values and surge in catastrophic claims activity in the second half of 2024.”

Mandell notes in his report that CNBC found BEVs and hybrids represented 20% of all new U.S. vehicle sales in 2024, and Cox Automotive predicts that to climb to 25% this year despite U.S. policy changes that could hinder BEV adoption.

Average claims severity for repairable BEVs was relatively flat at $6,236 in the U.S., a YoY decrease of 3%, and $7,241 in Canada, a YoY increase of 2%.

For mild and plug-in hybrids, severity averages ranged from $4,726 to $5,583 in the U.S. and $6,104 to $6,261 in Canada.

Internal combustion engine (ICE) vehicles had the lowest average severity among all propulsion types, and newer model ICE vehicles were closely aligned in severity costs with BEVs and PHEVs.

Total loss frequency also increased in 2024, up 2.2% from 8% in 2023 for BEVs in the U.S. and from 5.9% in 2023 to 8.7% in 2024 in Canada.

“This is commensurate with other propulsion types, which also experienced a total loss gain of nearly two percentage points as vehicle values continued to decline and catastrophic claims activity increased in the second half of the year,” Mandell wrote.

“BEV values declined more rapidly than any other propulsion type due to pricing changes brought on by several OEMs, improving manufacturing costs, increasing average vehicle age, and adding to consumer concerns about high-voltage battery health for used BEVs. At the close of the year, the average total loss market value for BEVs was $33,346 in the U.S. (down 22% from 2023) and $40,203 (CAD) in Canada (down 18.5% from 2023).”

Electrification in a vehicle’s architecture increases the degree of system interconnectivity and, following a collision, can lead to the disruption of sensitive components that require recalibration after repair. So, not surprisingly, BEVs had the highest per-estimate average for calibrations in 2024, at 1.61 followed by 1.58 for PHEVs, 1.46 for MHEVs, and 1.45 for ICE alternatives.

“Without a robust aftermarket parts industry for BEVs, OEM parts are more frequently used in the repair of electric automobiles,” the report states. “Last year, 88% of the parts dollars on estimates for repairable BEVs were for OEM parts compared to 69% for ICE automobiles. BEVs also have a lower percentage of parts repaired, 11% versus 13% for ICE options.”

In January, Mandell wrote that collision repairers will likely continue to face increasing vehicle complexity, rising claims severity, and longer cycle times as vehicle values and new vehicle demand drop while total loss frequency increases.

He said the collision repair and insurance industries can expect lower claims volume, higher severity, and ongoing advancements in vehicle technology that “will impact whether carriers meet — or miss — policyholder expectations.”

According to Mandell, signs from 2019-2024 that point to severity trends continuing to increase this year include:

• • A 27% jump in the average repairable severity for new model-year vehicles
  • A 50% increase in average repairable severity for 5-year-old automobiles
  • A 6.4% increase in the frequency of 5-year-old vehicles

The full 2025 trends report from Enlyte, Mitchell’s parent company, can be accessed here.

Images

Featured image: File photo from K&M Collision in Hickory, North Carolina (Lurah Lowery/Repairer Driven News)

Graphs provided by Mitchell International