#United States #San Diego #electric vehicles #Collision Claims #Mitchell International

Significant Rise in Collision Claims for Electric Vehicles

The latest report from Mitchell International, a leader in the property and casualty claims sector, reveals alarming trends regarding collision claims for electric vehicles (EVs) in North America. With a marked increase of over 30% in claims frequency, this report sheds light on the impacts and implications of this surge.

Insights from the Report

Key Findings

According to Mitchell's Plugged-In EV Collision Insights report, the frequency of claims for repairable battery electric vehicles (BEVs) reached 2.71% in the United States and 3.84% in Canada during 2024. This reflects an increase of 38% in the U.S. and 34% in Canada compared to the previous year. Meanwhile, mild hybrid electric vehicles (MHEVs) and plug-in hybrid electric vehicles (PHEVs) also saw a growth of about 7% in the U.S. and 24% in Canada.

Ryan Mandell, director of claims performance at Mitchell, attributes this uptick to a combination of factors, including a drop in vehicle values and a rise in catastrophic claims during the latter part of 2024. As a result, there was a noticeable increase in total loss claims as well.

Collision Severity Trends

Interestingly, the report noted that the average severity of claims for repairable BEVs has plateaued. In the U.S., the severity stood at $6,236, marking a 3% decrease year-over-year, while in Canada, it rose by 2% to $7,241. In contrast, the averages for MHEV and PHEV claims ranged from $4,726 to $5,583 in the U.S. and $6,104 to $6,261 in Canada. It's worth noting that traditional internal combustion engine (ICE) vehicles consistently had the lowest average severity, yet newer ICE models are beginning to converge with BEV and PHEV claims in terms of severity costs.

Impact of Electrification

The electrification of vehicles introduces greater interconnectivity in their systems, leading to increased complications in repairs. As such, BEVs have the highest average number of calibrations post-accident at 1.61, compared to PHEVs at 1.58 and MHEVs at 1.46. In stark contrast, traditional ICE vehicles averaged only 1.45 calibrations. This heightened need for calibration indicates that repairs for EVs are becoming increasingly intricate and costly.

Parts Utilization Challenges

Mitchell's report also highlighted the challenges associated with parts availability for EVs. A robust aftermarket parts industry for BEVs is still developing; therefore, OEM parts are relied upon heavily during repairs. The statistics reveal that 88% of parts used for repairing BEVs were OEM, significantly higher than the 69% for ICE vehicles. Additionally, only 11% of parts for BEVs were repaired, compared to 13% for ICE options. This disparity suggests that repairs for EVs may be costlier and more dependent on original manufacturers than traditional vehicles.

Conclusion

The implications of these findings are significant for insurers, auto manufacturers, and repair shops navigating the new landscape dominated by electric vehicles. Understanding the trends in collision claims and the distinct challenges faced in repairing EVs will crucially shape strategies for stakeholders throughout the automotive ecosystem. For further insights, access the full report through Mitchell's website and stay updated on this evolving sector.

For continuous updates and access to previous reports, visit Mitchell's official site.