Mitchell, an Enlyte company, on May 16 reported electric vehicle (EV) repairable claims frequency increased in Q1 2023 to 1.13% in the U.S. and 2.41% in Canada. The data was featured in the company's latest "Plugged-In: EV Collision Insights" publication, which provides up-to-date EV claims and market information to the auto insurance and repair industries.
"EV sales broke records in 2022 and the combination of high gas prices, government incentives and increased vehicle production helped drive consumer demand," said Ryan Mandell, director of claims performance at Mitchell. "With more EVs on the road, there will naturally be more EV collision claims. That puts a strain on auto insurers, who must balance policyholder expectations with higher than average vehicle repair costs and cycle time. It also puts a strain on collision repairers tasked with properly and safely restoring these automobiles to OEM standards."
According to the International Energy Agency (IEA), global EV sales are expected to grow another 35% this year and reach 14 million by the end of 2023. If the latest IEA projections are met, the share of EVs in the overall car market will have risen from approximately 4% in 2020 to 14% in 2022 and 18% in 2023.
Additionally, Cox Automotive reported the U.S. recorded a record-breaking first quarter with EV sales surpassing 250,000 and 7.2% of total new vehicle sales---setting the expectation that EV sales growth will surpass that of the industry for the foreseeable future.
To highlight the impact of electrification on automotive claims, Mitchell compared data from Q4 2022 to Q1 2023, showing:
- Average EV repairable severity has decreased to $4,749 in the U.S. and $6,406 in Canada but remains higher than for internal combustion engine (ICE) vehicles
- OEM parts usage and the percentage of parts repaired in EVs increased to 90.76% and 12.68% respectively
- Refinish time is nearly an hour more for EVs than for ICE automobiles, adding to claim costs
- EV models new to the market are now entering U.S. collision repair facilities for the first time
The report also includes data on EV claims frequency by geographic region as well as vehicle make and model. To download the current issue, visit www.mitchell.com/plugged-in. You can also subscribe to future issues by completing the web form.
Source: Mitchell
Abby Andrews