If there is one thing we can be certain of regarding trends in collision repair, it is that they are constantly changing. In 2024, claims frequency for battery electric vehicles (BEVs) grew by 34% in Canada and 38% in the U.S. Much of this has been driven by the increasing number of EVs and model variations now available to consumers, but last year’s jump in claims frequency can also be attributed to other factors.

Weather considerations

In the second half of 2024, there was an increase in major weather events, particularly in the U.S. with storms-including Hurricane Helene-impacting parts of the southeast and in Canada as winter weather took effect.

On the flipside, we have also seen a lower threshold when it comes to repairability. Vehicle values have continued to correct, particularly in the second half of 2024 and that manifested itself in more total loss outcomes. While salvage values remain relatively high, the overall value of a vehicle is not what it once was, reducing the threshold for fixing it versus writing it off as a total loss. Furthermore, over the last several years, manufacturers have introduced more EV options available at lower price points, which is also impacting claims severity.

Changing dynamics

Although overall demand for EVs has slowed and many government incentives are being rolled back, the fact remains that there are still more of these vehicles on the road today. That means more EVs are involved in collisions and require repair, yet the dynamics around that repair are changing. It is likely we could see a flattening of severity as it relates to EV repairs, since values are not what they once were. In addition, the average age of an EV versus an automobile with an internal combustion engine (ICE) is shrinking and there are changes in population and higher dollar claims getting removed from the mix as those vehicle values decline.

When we look at the top North American regions where collision claims for repairable BEVs are the highest, British Columbia is currently number one. In that province, 7.46% of all collision claims are for BEVs (representing a 2.11% increase in frequency between 2023 and 2024). In second place over the same period is California at 5.59% (with a 1.17% year-over-year increase in frequency) while Quebec (the other province in Canada that has really embraced EVs on a large scale) comes in third at 5.68% (having seen a 2.17% year-over-year increase in BEV claims frequency).

Given these statistics, there are more opportunities to repair EVs in these markets, including the ability for some collision centres to largely focus or specialize in EV repairs due to the higher density of these vehicles in areas like greater Vancouver, Los Angeles and Montreal. 

Calibration considerations

Additionally, when we look at EV repairs specifically, data from Mitchell demonstrably shows that the more electrified an automobile is, the greater the number of fault codes that appear when a diagnostic scan is performed. A major factor in this is the level of connectivity within the vehicle. When one part of the automobile is impacted by a collision, it is far more likely to cause disruption to that vehicle’s operating systems in another area. For collision centres, this means that along with the greater number and frequency of electrified vehicles that come into their facilities, there will be a need to perform more system scans and calibrations. This can add to cycle time—especially when sublet services are required—and must be factored into repair planning and the overall claim costs. 

In 2024, the per-estimate average for calibrations was 1.61 for BEVs versus 1.45 for ICE vehicles,1.46 for Mild Hybrid Electric Vehicles (MHEVs) and 1.58 for Plug-in Hybrid Electric Vehicles (PHEVs). This trend is likely to increase, requiring more focus on the blueprinting process as well as setting proper expectations among all stakeholders for the actual repair.

For the latest EV collision claims data and how it could impact you, visit www.mitchell.com/plugged-in.