Mitchell Reports a Lower Total Loss Rate for Electric Vehicles
Recent claims data debunks perception that electric vehicles (EVs) are more often declared a total loss following a collision than their internal combustion engine (ICE) counterparts
"Many believe that auto insurers are writing EVs off as a total loss more often than their ICE counterparts of a similar model year and ACV, even with only minor damage," said
Along with total loss frequency, the Q3 2023 Mitchell report documents the difference in EV and ICE automobile:
- Labor: Labor for EVs represented nearly half the cost of the total collision repair (49.66%) as compared to ICE alternatives (41%), equating to more than six additional labor hours per job.
- Claims Severity: Repair costs for all EVs continue to trend higher than those for gasoline-powered vehicles, with a differential of
$950 in theU.S. and$1,301 inCanada . These numbers are expected to grow in the coming months as supplements are written. - Parts Usage and Repair: OEM parts are the standard for EV repair with 88.85% of repairable EVs using parts provided by the vehicle manufacturer versus 67.48% for ICE alternatives.
The Plugged-In: EV Collision Insights report also highlights a modest increase from Q2 in claims volume for repairable EVs of 1.86% in the
To download the full report, visit the Mitchell website. You can also subscribe to future issues or access previous reports online at www.mitchell.com/plugged-in.
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For property and casualty and collision repair updates and perspectives, follow us on LinkedIn or X (@MitchellRepair and @MitchellClaims).
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