U.S. collision claims for EVs reach all-time high

“While collision claims are up, BEV sales are expected to drop significantly in the near term due to changing government policies,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence. “That puts even more pressure on carriers to refine their underwriting and claims management practices to support a more diverse car parc that also now includes a growing number of hybrid alternatives.”

The Q3 Plugged-In: EV Collision Insights report also reveals:

• Claims severity: 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. In both countries, automobiles with an internal combustion engine (ICE) had the lowest average severity followed by mild hybrid electric vehicles (MHEVs) and plug-in hybrid electric vehicles (PHEVs).
• Claims frequency by region: Regions with the most BEVs per capita also 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%.
• Total loss market values: Total loss market values averaged $29,827 for BEVs, a decrease of approximately 1% from Q2, compared with $13,979 for ICE automobiles.
• Parts utilization: Without a robust alternate parts industry for BEVs, OEM parts are most frequently used in BEV collision repairs. 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.

See also:

• What’s really driving the rise in bodily injury claim frequency?
• 5 holiday driving hazards to watch out for
• 5 Ways to avoid common holiday season insurance claims