EV repair cost gap hits record low

The repair-cost gap between battery electric vehicles and their internal combustion engine counterparts has fallen to a record low in Canada and the United States.

Mitchell’s Q2 2026 Plugged-In: EV Collision Insights report found average repairable severity in Canada reached $6,645 for BEVs, compared with $5,411 for ICE vehicles — a difference of $1,234. In the U.S., the gap narrowed to $729, with BEV severity averaging $5,684 versus $4,955 for ICE vehicles.

Mitchell said the narrowing gap could reflect higher total-loss frequency and a maturing EV fleet, bringing repair costs across powertrain types closer to parity.

“The shrinking BEV repair cost premium is an important development for insurers and collision repairers, particularly as the electric vehicle car [part] ages,” said Ryan Mandell, Mitchell’s Vice President of Strategy and Market Intelligence. “At the same time, ongoing trade and geopolitical uncertainty could put renewed pressure on replacement part costs and availability, with BEVs particularly exposed because of their greater reliance on OEM components.”

Canadian electrified-vehicle claims also continued to grow. BEVs represented a record 5.42 per cent of repairable claims during the second quarter, while mild hybrids reached 5.52 per cent. Those figures were up 12.4 per cent and 27.5 per cent year over year, respectively.

The report also underscores differences in how BEVs are repaired. OEM parts accounted for 84.74 per cent of parts dollars on BEV estimates, compared with 61.44 per cent for ICE vehicles. Meanwhile, 14.81 per cent of BEV parts were written for repair, versus 16.60 per cent for ICE models.

British Columbia and Quebec had the highest BEV repairable-claims frequencies among the North American markets highlighted by Mitchell, at 9.34 per cent and 9.19 per cent, respectively.

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