Mitchell: ‘Dramatic reversal’ of repairable BEV collision claims frequency, reaches all-time high

Q3 saw a dramatic reversal in U.S. repairable battery electric vehicle (BEV) collision claims frequency, jumping to an all-time high of 3.21%, according to Mitchell International’s latest “Plugged-In: EV Collision Insights” report.

Mitchell noted that frequency had previously dropped in Q2 as expiring government tax incentives prompted record-breaking sales.

In Q3, BEV claims also increased to 4.91% in Canada, representing a 24% year-over-year increase.

“We’re witnessing the immediate impact of policy changes on BEV adoption and collision claim trends in both the U.S. and Canada,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, in a press release. “With recent political and trade developments producing uncertainty, many automakers are now diversifying their portfolios to accommodate more hybrid and gasoline-powered alternatives as they reassess their BEV investments and growth targets.

“This gradual, geographically uneven transition to widespread vehicle electrification will require auto insurers and collision repairers to adjust underwriting strategies, business processes and workforce training to support a wider mix of drivetrains.”

Average severity for repairable BEVs dropped to $6,185 in the U.S. and $6,954 (CAD) in Canada, a decrease of 2.4% and 1.5% respectively from Q2, according to the report. In both countries, internal combustion engine (ICE) vehicles had the lowest average severity, followed by mild hybrid electric vehicles (MHEVs) and plug-in hybrid electric vehicles (PHEVs).

Regions with the most BEVs per capita continue to have the highest number of BEV collision claims. Last quarter, 8.74% of all repairable vehicle claims in British Columbia were for BEVs. Quebec came in a close second at 8.37% and California was third at 6.50%.

For ICE vehicles, total loss market values averaged $29,827 for BEVs — a 1% decrease from Q2 — compared with $13,979.

“Without a robust alternate parts industry for BEVs, OEM parts are most frequently used in BEV collision repairs,” the release states. “On estimates, 85% of the parts dollars for repairable vehicles in Q3 were designated for OEM parts — a slight increase over the previous quarter — versus 62% for ICE alternatives.”

Mitchell notes that as BEV adoption expands with the addition of more affordable models, growth remains uneven across different regions and buyer groups.

“Automakers are balancing heavier investments in BEV platforms with renewed attention to hybrids and ICE variants to protect volume and margins during an uncertain transition — all while battery costs decline and incremental range improvements keep BEVs increasingly competitive,” the report states.

“The shift to more diversified portfolios through regional supply chains and modular manufacturing gives OEMs the ability to flex between BEVs, plug-in hybrid electric vehicles (PHEVs) and mild hybrid electric vehicles (MHEVs) based on market demand. In North America, government incentives and regulatory mandates have accelerated BEV investment and increased consumer adoption. However, recent political and trade developments are introducing uncertainty — prompting the reassessment of BEV policies, growth targets and infrastructure funding.”

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