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The Decreasing Claims Severity Gap Between BEVs and ICE Vehicles

Recent findings from Mitchell International highlight a significant shift in the automotive repair landscape, particularly in the context of battery electric vehicles (BEVs) and internal combustion engine (ICE) vehicles. According to their latest report on EV collision insights, the average claims severity gap between these two categories of vehicles has decreased to unprecedented levels in both the United States and Canada.

Overview of Repairable Severity Costs

The report indicates that in the U.S., the difference in average repair costs for BEVs compared to ICE vehicles is now only $729, with BEVs averaging $5,684 in repair costs against $4,955 for ICE cars. This narrowing gap is mirrored in Canada, where the average repairable severity for BEVs stands at $6,645 CAD compared to $5,411 CAD for gasoline vehicles, translating to a gap of just $1,234 CAD.

Although BEVs are still generally more expensive to repair, the data suggests that the frequency of total loss claims and the increasing maturity of the electric vehicle fleet are contributing to a convergence in repair costs between different powertrain options.

Implications for the Insurance and Repair Industries

Ryan Mandell, vice president of strategy and market intelligence at Mitchell, underscores the significance of this trend for insurers and collision repair shops. The shrinking premium for repairing BEVs is critical, especially as the electric vehicle market matures. However, Mandell also warns that ongoing supply chain issues—exacerbated by geopolitical tensions—might renew pressure on the costs and availability of replacement parts, an area where BEVs are particularly vulnerable due to their dependency on original equipment manufacturer (OEM) components.

Regional Trends in Electric Vehicle Claims Volume

The report further delves into claims volume trends, revealing marked regional differences. In the U.S., repairable claims involving BEVs remained steady at 3% of the total claims, while claims for mild hybrid electric vehicles (MHEVs) surged to an all-time high of 6%, marking a robust 26% increase year-over-year. Conversely, in Canada, both BEVs and MHEVs exceeded 5% of repairable claims, with BEVs witnessing a 12% increase and MHEVs an impressive 28% over the previous year. The report also notes a 21% increase in Canadian sales of new electric vehicles in the first four months of 2026 compared to the same period in 2025.

OEM Parts and Repair Decisions

In terms of parts selection, the data reveals a significant reliance on OEM components for repairing BEVs, with 85% of parts costs attributed to OEM selections as opposed to 61% for ICE vehicles. Moreover, there is a notable difference in repair versus replacement decisions; only 15% of parts in BEV collision estimates were approved for repair, compared to 17% for ICE vehicles. This statistic highlights the challenges repairers face when dealing with the intricacies of electric vehicle repair.

Mitchell's report signifies a pivotal moment for the automotive industry, illustrating both the challenges and opportunities presented by the growing prevalence of electric vehicles. As the industry navigates these changes, insurance carriers and repairers will need to adapt to the evolving landscape shaped by technological advancements and market dynamics. For a more comprehensive understanding of these developments, interested parties can visit Mitchell's website to download the full report and access previous publications.