North American EV Collision Claims Hit Record High In 2023

Mitchell’s latest trends report, ‘Plugged-In: EV Collision Insights’, shows electric vehicle claims volume increased in 2023 by more than 40 per cent in the US and Canada year-over-year.

“2023 was a record year for electric vehicles,” said Ryan Mandell, Director of Claims Performance at Mitchell. “Not only did the frequency of EV collision claims rise to historic levels but the US also surpassed 1.2 million in new EV sales for the first time ever.

“As long as consumer adoption remains strong, EVs will continue to have a significant impact on the auto insurance industry, creating challenges for everything from underwriting to the delivery of proper and safe repairs.”

In addition to tracking 2023 claims volume, the Mitchell report compares EVs to vehicles with an internal combustion engine, highlighting differences in several areas:

  • Claims severity: Last year, average severity in the US for repairable EVs was US$6,018 compared to US$4,696 for ICE alternatives. This represents a year-over-year decrease of five per cent for EVs and an increase of three per cent for ICE vehicles. In Canada, severity was US$6,795 for EVs versus US$5,122 for ICE-powered options.
  • Vehicle complexity: For 2020 and newer collision-damaged automobiles, EV repairs were 50 per cent more likely to include an operation associated with the sensors used in advanced driver-assistance systems, based on 2023 data, than ICE vehicles that also rely on ADAS.
  • Parts repairability: EVs are more likely to use parts made of lightweight materials, which can impact repairability. In 2023, on average only 12 per cent of EV parts were repaired versus replaced. For ICE-powered options, the percentage of parts repaired was closer to 15 per cent.
  • Material construction: EVs tend to be heavier than ICE vehicles due to battery weight. This may be one reason why they had a higher frequency of air bag deployments (3.62 per cent) than ICE options (2.45 per cent) last year, adding to repair costs.

Read more and find the full report here.