EV Crash Claims Rise by 38%, and Repair Costs Reach New Heights | Carscoops

      Repair costs for electric vehicles (EVs) remain high, although the difference is less significant when compared to newer internal combustion engine (ICE) models with similar complexity.

      According to Mitchell, the U.S. saw a 38% increase in claims for EVs in 2024 relative to 2023.

      On average, repairs for EVs are still pricier compared to ICE vehicles, hybrids, and plug-in hybrids (PHEVs).

      Tesla vehicles represented over 71% of all repairable EV claims in 2024.

      As electric vehicles become more prevalent on U.S. roads, the number of crash claims is also increasing. Collision management software provider Mitchell reported a 38% rise in claims for battery-electric vehicles (BEVs) in the U.S. in 2024 compared to the previous year. This increase is not surprising given the surging interest in fully electric cars but underscores the higher repair costs associated with them.

      Rising EV Collision Claims

      The research showed that EVs made up 2.71% of all claims in the U.S. in 2024, which is a 38% increase from 2023. In Canada, the figure was slightly higher at 3.84%, reflecting a 34% increase year-over-year. These statistics further indicate the rapid growth of EV adoption in North America.

      Additionally, organizations like Argonne National Laboratory and Electric Autonomy note that more than 100 different EV models are available in the U.S. and 75 in Canada, with many more expected by year-end. This trend confirms that electric cars are here to stay and they're involved in accidents as frequently as traditional vehicles.

      In terms of total loss frequency, EVs saw an increase from 8% in 2023 to 10.2% in 2024. Mitchell observed that this 2% rise in write-offs was consistent among all vehicle powertrains in the U.S., primarily due to a surge in catastrophic claims during the latter half of 2024.

      Tesla Leads the Pack in Claims Frequency

      Tesla models unsurprisingly lead in EV crash claims. The Model Y and Model 3 had claim frequencies of 31.43% and 29.86%, respectively. Together, they accounted for over 60% of claims involving collision-damaged repairable EVs in 2024.

      When adding the Model S (5.53%) and Model X (4.58%), Tesla's overall share climbs to a substantial 71.4%. The only non-Tesla BEV in the top five was the Ford Mustang Mach-E, with a claim frequency of 6.37%.

      Tesla's dominance is expected, given the high number of Model Ys and Model 3s on the roads. The higher the number of cars, the greater the likelihood of accidents, and Tesla certainly has a substantial presence.

      What About The Repair Costs?

      Mitchell's study also highlighted average repair costs for vehicles damaged in collisions for 2024, illustrating the significant differences between EVs and traditional ICE vehicles. Electric cars were shown to be the most expensive to repair, with an average claim severity of $6,236 in the U.S., reflecting a 3% decrease from 2023. In contrast, ICE vehicles had a lower average of $5,066.

      However, when focusing solely on newer ICE models ($6,127), their repair costs start to approach those of electric vehicles, due to the greater complexity associated with these newer ICE cars.

      Average Repair Costs (2024)

      There are exceptions, such as Rivian, where owners have often expressed dissatisfaction over exorbitant repair costs for what are typically minor damages—a topic we have discussed several times before.

      Mitchell also noted that the values of EVs are depreciating more quickly than those of other powertrain types. This decline in value is attributed to factors such as lower manufacturing costs, the aging of these vehicles, and consumer worries about battery health, particularly in used models. Consequently, the average total loss market value for EVs significantly dropped in 2024, reaching $33,346 in the U.S. (-22%) and $40,203 in Canada (-18.5%).