#United States
#San Diego
#Battery Electric Vehicles
#Mitchell International
#Hybrid Electric Vehicles
US Sees First Decline in Battery Electric Vehicle Collision Claims Amid Rise in Hybrid Vehicle Claims
In a notable trend, the collision claims frequency for battery electric vehicles (BEVs) in the United States has experienced a significant decrease for the first time, while claims for mild hybrid electric vehicles (MHEVs) have surged. This information is part of the latest Plugged-In EV Collision Insights report by Mitchell, a leader in auto physical damage technology. According to the report, which covers the second quarter of 2025, BEV claims dropped by 7%. This drop reflects a broader trend, with new purchases of BEVs declining by 6% year over year, despite strong sales earlier in the year. Meanwhile, claims for MHEVs have seen a notable rise, reaching approximately 5% in the U.S. and 4% in Canada, marking increases of 2% and 9%, respectively, from the previous quarter, and 21% and 29% from the prior year.
This decline in BEV claims aligns with looming changes in government incentives. With U.S. federal tax credits set to expire in September, consumer demand for BEVs is facing pressures. In a bid to stimulate sales, automotive manufacturers have instituted significant price reductions, with discounts peaking at nearly $8,500 per vehicle, the highest recorded. Yet, these fiscal strategies seem insufficient to fully counter the market's shifting dynamics.
The report sheds light on several key findings. Firstly, the average total loss market value for BEVs stands at approximately $30,172, while internal combustion engine (ICE) vehicles average around $13,850—both showing slight declines compared to the previous quarter. Plug-in hybrid electric vehicles (PHEVs) also saw their average market value drop by about 3%, contrasting with the increase in value for MHEVs, which rose close to 2%.
Furthermore, claims severity, which indicates the average cost associated with repairs, continues to be the highest for BEVs at $5,903 in the U.S. and $6,633 CAD in Canada. They are followed by PHEVs at $5,254 and $5,916 CAD, respectively. Gasoline cars and mild hybrids have lower average repair costs, with gas vehicles at $4,938.
Interestingly, while the percentage of parts repaired on BEVs has improved slightly, it still lags behind ICE automobiles, which shows a greater repair rate. A significant 83% of parts used for BEV repairs are original equipment manufacturer (OEM) parts, as opposed to 63% for ICE vehicles.
In conclusion, the emission regulations and the expiration of federal tax incentives represent pivotal challenges for the BEV market, which may alter consumer choices in favor of hybrid vehicles. For detailed insights and trends in the electric and hybrid vehicle market, the full Q2 2025 Plugged-In EV Collision Insights report can be accessed at Mitchell's website. This report also offers a historical perspective on previous data, assisting stakeholders in navigating the evolving landscape of automotive claims and consumer preferences.
To stay updated on these developments, follow Mitchell on various social media platforms including Facebook and LinkedIn.
This decline in BEV claims aligns with looming changes in government incentives. With U.S. federal tax credits set to expire in September, consumer demand for BEVs is facing pressures. In a bid to stimulate sales, automotive manufacturers have instituted significant price reductions, with discounts peaking at nearly $8,500 per vehicle, the highest recorded. Yet, these fiscal strategies seem insufficient to fully counter the market's shifting dynamics.
The report sheds light on several key findings. Firstly, the average total loss market value for BEVs stands at approximately $30,172, while internal combustion engine (ICE) vehicles average around $13,850—both showing slight declines compared to the previous quarter. Plug-in hybrid electric vehicles (PHEVs) also saw their average market value drop by about 3%, contrasting with the increase in value for MHEVs, which rose close to 2%.
Furthermore, claims severity, which indicates the average cost associated with repairs, continues to be the highest for BEVs at $5,903 in the U.S. and $6,633 CAD in Canada. They are followed by PHEVs at $5,254 and $5,916 CAD, respectively. Gasoline cars and mild hybrids have lower average repair costs, with gas vehicles at $4,938.
Interestingly, while the percentage of parts repaired on BEVs has improved slightly, it still lags behind ICE automobiles, which shows a greater repair rate. A significant 83% of parts used for BEV repairs are original equipment manufacturer (OEM) parts, as opposed to 63% for ICE vehicles.
In conclusion, the emission regulations and the expiration of federal tax incentives represent pivotal challenges for the BEV market, which may alter consumer choices in favor of hybrid vehicles. For detailed insights and trends in the electric and hybrid vehicle market, the full Q2 2025 Plugged-In EV Collision Insights report can be accessed at Mitchell's website. This report also offers a historical perspective on previous data, assisting stakeholders in navigating the evolving landscape of automotive claims and consumer preferences.
To stay updated on these developments, follow Mitchell on various social media platforms including Facebook and LinkedIn.
Topics Auto & Transportation）
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