The Continued Rise of Electric Vehicles

Mitchell has released its latest publication of Plugged-In: EV Collision Insights, which shows the repairable claims frequency increased for electric vehicles in both the U.S. and Canada in the first quarter of 2023. As more of these vehicles take to the road, higher vehicle repair costs and cycle times, as well as additional Original Equipment Manufacturer (OEM) requirements for technicians, are likely in store for the industry.

According to the report for the first quarter of 2023, the electric vehicle repairable claims frequency increased to 1.13% in the U.S. and 2.41% in Canada. Those equate to increases of 0.03% and 0.15%, respectively.

That’s on par with record sales of electric vehicles in 2022, which Mitchell director of claims performance Ryan Mandell attributes to high gas prices, government incentives and increased vehicle production.

“With more EVs on the road, there will naturally be more EV collision claims,” Mandell says. “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.”

In comparing data from the fourth quarter of 2022 to the first quarter of 2023, Mitchell found that OEM parts use and the percentage of parts repaired increased to 90.76% and 12.68%, respectively. According to the International Energy Agency, global EV sales are expected to increase by another 35% throughout 2023 and reach 14 million by the end of the year.

California is the top U.S. electric vehicle market with a repairable claims frequency of 3.7%, while British Columbia and Quebec top the Canadian charts at 4.8% and 3.14%, respectively. Tesla vehicles account for four of the five top electric vehicles in the U.S. alongside the fourth-placed Ford Mustang Mach-E. In Canada, Tesla nabs the top two spots on the list, followed by the Nissan Leaf, Hyundai Kona EV and the Chevy Bolt.

This entry was posted in glassBYTEs Headlines. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *