EV collision claims climb as sales cool

Electric vehicle collision claims rose sharply in 2025, even as new model sales slowed, according to Mitchell’s latest Plugged-In: EV Collision Insights report released in February.

The San Diego-based auto physical damage technology provider said U.S. battery electric vehicle (BEV) sales declined about 2 per cent last year. Still, repairable claims continued to climb. 

In the United States, the share of repairable claims increased 6 per cent for plug-in hybrids (PHEVs) and 20 per cent for mild hybrids (MHEVs) year over year. In Canada, those figures rose 26 per cent and 29 per cent, respectively.

“Even as BEV adoption slowed in North America last year following the end of government tax incentives, the auto insurance and collision repair industries still saw claims volume rise since more of these automobiles are on the road than ever before,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, in a statement.

“Due to their dense electrical architectures, software-driven systems and interconnected, sensor-heavy designs, these vehicles require additional diagnostic and calibration operations when damaged that can add cost, complexity and cycle time to each repair,” he added.

In 2025, BEVs averaged 1.70 calibrations per estimate, compared with 1.63 for hybrids and 1.54 for internal combustion engine vehicles.

The report also found total-loss market values fell across most powertrains, with BEVs dropping 6 per cent in the U.S. and 13 per cent in Canada. Average repair severity for BEVs declined 5 per cent in the U.S. and 2 per cent in Canada. OEM parts accounted for 86 per cent of parts dollars on repairable BEV estimates, versus 62 per cent for ICE vehicles.

The data underscores a potential reality in which more EVs on the road could result in more complex, calibration-heavy repairs, along with tighter margins if parts and labour planning do not keep pace.

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