Severity Gap Between Repairable BEVs and ICE Vehicles Reaches Record Low

The gap in average claims severity between repairable battery electric vehicles and internal combustion engine automobiles hit the lowest level on record in both the U.S. and Canada, a new report shows.

Mitchell released its latest Plugged-In: EV Collision Insights report. This quarter’s report reflects a gap of $729 in the U.S. last quarter, with average repairable severity for BEVs at $5,684 compared with $4,955 for ICE vehicles. The gap in Canada was $1,234 CAD, with BEV severity at $6,645 CAD versus $5,411 CAD for ICE vehicles.

BEVs are still more costly to repair, but the data suggests “a combination of higher total loss frequency and a maturing electric vehicle fleet are bringing repair costs across powertrain types closer to parity.”

Related: Report: Hybrid Vehicle Collision Claims Hit Record High in First Quarter

The percentage of repairable claims involving BEVs was flat at 3% in the U.S., but mild hybrid electric vehicle (MHEV) claims reached a new high of 6%. In Canada, BEVs and MHEVs each accounted for more than 5% of repairable claims, setting new records.

The report warns that evolving geopolitical and trade conditions could put renewed pressure on repair costs in the near future.

“Conflict in the Middle East has increased uncertainty surrounding energy markets, global shipping routes and aluminum supplies, potentially affecting the cost and availability of replacement parts. At the same time, tariffs and review of the United States-Mexico-Canada Agreement (USMCA) are continuing to influence where vehicles and parts are manufactured and sourced,” the report states.

Related: EV Collision Claims Rise in US And Canada as Sales Of New Models Decrease

The report shows that fewer parts are repaired on damaged BEVs than ICE automobiles. Last quarter, 15% of parts on BEV estimates were written for repair compared with 17% for ICE vehicles.

The top five BEVs by percentage of repairable claims in the U.S. were Tesla Model Y (31%), Tesla Model 3 (25%), Ford Mustang Mach-E (4%), Hyundai Ioniq 5(3%) and Tesla Model S (3%).