Electric vehicle collision repair claims continued climbing in 2025, even as new battery electric vehicle sales dipped roughly 2% in the U.S. Mitchell’s latest Plugged-In report reveals that BEVs now account for 3.07% of all repairable automobile claims nationally. That figure represents a 14.1% year-over-year increase.
Highlights
- BEV repairable claims rose 14.1% in the U.S. and 24% in Canada despite slowing new vehicle sales and rescinded government tax credits.
- Average U.S. BEV claim severity dropped 5%, falling from $6,707 in 2024 to $6,395 in 2025.
- BEV values declined 6.44% in the U.S. and 12.62% in Canada, outpacing depreciation across all other powertrain types.
- BEVs averaged 1.70 calibrations per estimate, compared with 1.54 for ICE vehicles, underscoring persistent repair complexity.
BEV Market Faces Headwinds in 2025
The battery electric vehicle market encountered significant volatility last year. Several automakers scaled back EV investments, including Ford’s decision to end F-150 Lightning production. Meanwhile, the U.S. and Canada rescinded tax credits intended to boost consumer demand.
Overall BEV purchases declined roughly 2% from 2024. Tesla’s market share also fell to 46.2% from 48.7% the prior year. However, brands like GM, Honda, and Volkswagen posted modest BEV sales gains.
In contrast, broader model availability and closer price parity with ICE vehicles drove record mild hybrid electric vehicle sales. MHEV purchases increased 28% in the U.S. during 2025.
Vehicle Values Decline Across Powertrains
BEVs experienced the steepest value declines among all powertrain types. Key figures include:
- U.S. BEV values: Dropped 6.44% year over year, from $30,126 in 2024 to $28,185 in 2025
- Canadian BEV values: Fell 12.62%, from $41,775 to $36,504
- U.S. ICE values: Declined a more modest 2.55%, from $14,241 to $13,887
- Canadian ICE values: Decreased 6.12%, from $17,049 to $16,005
Hybrid values presented a mixed picture. In the U.S., combined MHEV and PHEV values actually rose 4.18%, reaching $19,225. However, Canadian hybrid values declined 4.40% to $28,938. Accelerated depreciation, increased availability of lower-cost models, and shifting consumer sentiment all contributed to BEV declines.
Claims Frequency Keeps Climbing
Despite the sales slowdown, more BEVs on the road translated to rising claims frequency. In the U.S., repairable claims by powertrain type broke down as follows:
- BEVs: 3.07% of all repairable claims, up 14.1% year over year
- MHEVs: 4.82%, up 20%
- PHEVs: 0.89%, up 6%
Canadian figures showed even sharper growth. BEV claims reached 4.77%, MHEV claims hit 4.44%, and PHEV claims totaled 1.55%. Those represent year-over-year increases of 24%, 29%, and 26%, respectively.
Repair Severity Decreases for BEVs
Average claim costs for repairable BEVs declined in both countries. U.S. BEV severity dropped 5%, falling from $6,707 in 2024 to $6,395 in 2025. Canadian BEV severity decreased 2%, from $7,410 to $7,253.
Other powertrain types showed varied results:
- U.S. ICE severity: Slight decline from $5,176 to $5,105
- U.S. PHEV severity: Decreased from $5,759 to $5,628
- U.S. MHEV severity: Increased 4%, from $4,865 to $5,054
- Canadian ICE, MHEV, and PHEV severity: Remained relatively flat year over year
Repair Complexity Remains Elevated
BEVs continue to present significant repair challenges. Dense electrical architectures, software-driven systems, and sensor-heavy designs generate high diagnostic and calibration demands. As a result, BEVs averaged 1.70 calibrations per estimate in 2025. By comparison, ICE vehicles averaged 1.54 and hybrids averaged 1.63.
These demands carry important implications for the collision repair industry. Markets with higher concentrations of BEVs and hybrids face greater repair requirements. Consequently, collision facilities must maintain or expand existing capabilities. Additionally, auto insurers need to account for these operations and costs in their underwriting models.
Mitchell’s full Plugged-In: EV Collision Insights report is available for download. It includes additional data on top BEV markets, leading models by claims frequency, and parts utilization trends.
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