Browse
Log in / Register
Share
July 18, 2025 – The difference in average repairable claim severity between battery electric vehicles (BEVs) and internal combustion engine (ICE) vehicles hit a new low in the second quarter of 2025, according to Mitchell International’s latest “Plugged-In: EV Collision Insights” report. The narrowing gap signals that EV repair costs are gradually aligning with traditional vehicles, even as geopolitical and trade tensions pose fresh risks to parts supply chains.
In the U.S., the average repairable severity for BEVs stood at $5,684, while ICE vehicles averaged $4,955, producing a gap of just $729—the smallest spread on record. Canada saw a similar trend, with BEV severity at CAD $6,645 versus CAD $5,411 for ICE, a difference of CAD $1,234. Mitchell’s data underscores a meaningful shift: as more BEVs enter the fleet and total loss frequencies rise, repair expenses across powertrain types are converging.
“The shrinking BEV repair cost premium is an important development for insurers and collision repairers, particularly as the electric vehicle car parc ages,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence. However, he warned that ongoing trade and geopolitical uncertainty could put renewed pressure on replacement part costs and availability, with BEVs especially vulnerable due to their heavy reliance on OEM components.
Mandell pointed to the Middle East conflict as a destabilizing factor for energy markets, shipping routes, and aluminum supplies, all of which affect replacement parts pricing and availability. Additionally, the ongoing review of the United States-Mexico-Canada Agreement (USMCA) and tariffs continue to reshape where vehicles and parts are manufactured. “As automakers and suppliers adjust production and distribution strategies, collision repairers and carriers could experience greater variability in parts pricing, availability, and delivery times,” Mandell wrote. “These developments are particularly relevant for BEVs, which are more dependent on OEM replacement parts than ICE alternatives and typically have fewer parts repaired versus replaced.”
Regional trends and EV adoption growth
The report highlights marked regional differences in EV claims volume. In the U.S., BEV repairable claims remained flat at 3% of total claims, while mild hybrid electric vehicle (MHEV) claims reached a new all-time high of 6%—a 26% year-over-year increase. In Canada, both BEVs and MHEVs broke records, accounting for over 5% of repairable claims each, with year-over-year increases of 12% and 28%, respectively. Canadian new EV sales also surged 21% in the first four months of 2025 compared to the same period in 2024, according to Mitchell.
OEM parts dominance persists
The report reinforces that BEVs remain far more reliant on OEM parts than ICE vehicles. On repairable estimates, OEM parts accounted for 85% of parts dollars on BEVs, versus 61% on ICE vehicles. This helps explain why BEV repair costs—though declining—remain higher. Furthermore, repair-versus-replace decisions are skewed: only 15% of parts on BEV estimates were written for repair, compared to 17% for ICE vehicles. The lower repair rate for BEVs is partly due to the complexity of EV components and automaker repair guidelines that often mandate replacement.
Industry reaction and outlook
Industry analysts note that the narrowing severity gap is a positive sign for insurers, who have been wary of the higher cost of insuring EVs. “The data suggests that the repair cost disadvantage of BEVs is eroding faster than many expected,” said Katherine Lee, a senior insurance analyst at DataDriven Insights. “But the supply chain risks from tariffs and global instability could easily reverse this trend, especially for BEVs that rely on imported OEM parts.”
The full Mitchell report is available for download on the company’s website. Insurers and repairers are advised to monitor parts availability trends and consider adjusting estimating practices as the EV fleet matures.
