Mitchell: Shift in EV claim trends introducing new challenges for insurers, repairers

Mitchell’s Q1 2026 Plugged-In: EV Collision Insights report reveals a shift in electric vehicle claim trends that it says is introducing new challenges for insurers and repairers, including risk exposure, cycle time, and repair complexity.

During the quarter, the share of repairable collision claims for battery electric vehicles (BEVs) held steady at 3.33% in the U.S. and 4.94% in Canada, according to the report.

However, claims for mild hybrid electric vehicles (MHEVs) surged to record highs — 5.69% in the U.S. and 5.28% in Canada — representing year-over-year increases of 25% and 33%, respectively.

“Electrification isn’t slowing, it’s evolving,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, in a press release. “Even as BEV sales soften, the number of hybrids on the road is growing, and that is clearly reflected in the rise of hybrid collision claims.

“For insurers, this affects the types of vehicles and risks they must manage. For repairers, it adds complexity by requiring additional tooling, labor operations, and training to ensure a proper and safe repair.”

The report points to rising fuel costs and geopolitical instability in the Middle East as key drivers accelerating consumer interest in EVs, primarily hybrids.

“Limited new vehicle supply and rising fuel costs are pushing consumers to the used BEV market,” the report states. “Geopolitical instability in the Middle East conflict has contributed to oil price volatility, reinforcing the value proposition of electrified automobiles. At the same time, material cost pressures are increasing repair and manufacturing expenses. With Iranian military strikes on smelters in several Gulf states, aluminum prices have spiked.”

It also notes that supply constraints, import tariffs, and the expiration of federal tax incentives have slowed the rate of BEV adoption.

Mitchell says that despite the near-term slowdown, BEVs are still expected to reach approximately 29% of new vehicle sales and just over 10% of vehicles in operation by 2035.

In Q1, 12% of BEV collision claims resulted in a total loss designation compared to 13% for new internal combustion engine (ICE) vehicles less than six years old.

“This demonstrates how the changing economics of the used BEV market are creating growing similarities between the two propulsion types when it comes to complexity and total loss decision-making,” the release states.

It adds that while average severity for repairable vehicles declined for all powertrain options, it remains highest for electrified alternatives.

In the U.S., severity averaged $6,042 for BEVs (down 13% from a high of $6,912 in late 2022), $5,352 for plug-in hybrid electric vehicles, $4,993 for MHEVs, and $4,902 for ICE vehicles. In Canada, claims severity followed a similar pattern.

“For many consumers, MHEVs deliver a better balance of efficiency, affordability, and usability,” the report states. “Some automakers also see hybrids as a lower-risk pathway to meeting emissions and fuel economy regulations while leveraging existing manufacturing platforms. The increase in MHEV claims puts added pressure on collision facilities to ensure they have the proper equipment and training to deliver safe repairs. At the same time, carriers must factor in the added repair complexity and costs in underwriting and claims management.”

Mitchell notes that the North American regions with the most claims for repairable BEVs were British Columbia, Quebec, and California, reflecting continued regional concentration of EV adoption. 

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