Report: EV Repair Costs 28% Higher than ICE Vehicles

In 2023, electric vehicle repairable claims frequency was at 1.97% in the U.S. and 2.86% in Canada, representing an increase of more than 40% in both regions over the previous year, according to the “Plugged-In: EV Collision Insights” report by Mitchell. When compared to 2020, the frequency of claims for repairable EVs has more than tripled.

When it comes to claims severity, EVs continue to surpass automobiles with an internal combustion engine (ICE). Last year in the U.S., the average repairable severity for repairable EVs was $6,018 compared to $4,696 for ICE alternatives, according to the report. But year over year, severity was down by about 5% for EVs while it increased by 3% for ICE-powered vehicles.

Today, roughly 1.8% of vehicles sold are EVs and EVs represent about 0.8% of insurance claims, according to 2023 data from CCC Intelligent Solutions. EVs are just starting to impact the automotive aftermarket.  

Data supports that EV collisions are happening at a statistically higher rate — which is believed to be related to the responsiveness of the powertrain that is not expected by the consumer, according to Opus IVS, an automotive solutions provider for global repair shops and dealerships.

ADAS Effect

When it comes to the cost of those repairs, ADAS is the driver, rather than the presence of an EV powertrain.

For 2020 and newer collision-damaged automobiles, EV repair estimates are about 50% more likely to include an operation associated with the sensors used in advanced driver assistance systems (ADAS) than ICE vehicles, which also rely on ADAS.

Another factor is weight: Because EV vehicles are generally heavier than their ICE counterparts, this could account for the higher occurrence of EV airbag deployments. According to the report, EV airbag deployments occurred 3.62% last year compared to 2.45% for ICE alternatives.

Collision repairs that include an airbag deployment are generally three times more expensive than those without one, adding to the repair cost differential between EVs and ICE vehicles.