Electric vehicle claims frequency rises

Electric vehicles cost an average of $1,576 more to repair after a collision than their fossil fuel counterparts, finds a new report by Mitchell. 

And claims frequency is growing for EVs, rising 3.94% in Canada for a year-over-year increase of 39%. 

Battery electric vehicles cost Canadians an average of $6,534 in claims to repair this past quarter. In comparison, cars with internal combustion engines (ICEs) cost $4,958 to repair — a difference of 31%. 

That’s despite a dip in battery EV sales, which were at 9.2% of all vehicles purchased in the second quarter, compared to 10% at the end of 2023. 

“It remains to be seen whether the decline in sales is temporary or, instead, reflects a broader shift in consumer sentiment,” reads the Mitchell report.  

Yet, mild and plug-in hybrid electric vehicle sales have increased 69.7% compared to the end of 2023. Mild hybrids have small electric generators in place of standard starter motor and alternator assemblies. This increases fuel efficiency and cuts emissions because the generator helps with quick acceleration and other fuel-costly functions.

“Like BEVs, [mild and plug-in hybrid] vehicles can be costlier to repair after a collision when compared to their internal combustion engine, or ICE, counterparts,” said Ryan Mandell, Mitchell’s director of claims performance. 

“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.” 

Claims costs also differ by type of electric vehicle.  

Mild hybrid electric vehicles (MHEV) cost an average $5,302 to repair. But plug-in hybrid electric (PHEV) vehicles cost closer to $5,665 to repair, since the vehicles rely on both a large, high-voltage battery and a secondary ICE. 

British Columbia and Quebec are the Canadian provinces with the highest frequency of repairable claims (7.07% and 5.14% respectively), each representing a less than one per cent increase since the end of 2023.  

Total loss frequency between BEVs and newer ICE vehicles strikes a similar chord.  

Canadian BEVs were written off as a total loss 7.24% of the time (down 3% from Q1 2024 and up 44% from Q2 2023). Newer ICE vehicles, which are equally as complex as battery electric vehicles when it comes to repairs, were deemed a total loss 8.52% of the time. 

 

Feature image by iStock.com/ferrantraite