Trends in EV Collision Claims and Impact on Auto Insurance

Mitchell's recent Plugged-In EV Collision Insights report reveals a deceleration in battery electric vehicle (BEV) adoption while highlighting key trends in collision claims and repair for BEVs, plug-in hybrid electric vehicles (PHEVs), and mild hybrid electric vehicles (MHEVs). In the U.S., BEV purchases decreased by approximately 2% in 2024; however, collision claim frequency for these vehicles escalated by 14.1%. Notably, claims involving MHEVs increased by 20%, and PHEV claims rose by 6%, despite a 5% decline in the overall cost of claims.

Ryan Mandell, Mitchell's vice president of strategy and market intelligence for the auto physical damage division, explained that although BEV adoption slowed in North America due to the termination of government tax incentives, the auto insurance industry experienced a surge in claims volume. This rise is attributed to the increasing presence of such vehicles, whose complex electrical and software systems require extensive diagnostic and calibration procedures, thereby impacting claims processing and repair times.

The report indicates that BEVs necessitated an average of 1.70 calibrations per repair estimate in 2025, compared to 1.54 calibrations for internal combustion engine vehicles. An interesting trend noted by Mandell is the reduction in Tesla's average repair severity compared to other EV manufacturers. This change signifies Tesla's market maturation, as their vehicles in 2025 are, on average, older than non-Tesla EVs. Mitchell's findings underscore the importance of the insurance sector adapting to evolving vehicle technologies and market dynamics, stressing the need for continuous strategic adjustments to meet the demands of an ever-evolving automotive landscape.