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Mitchell, a leading provider of innovative auto physical damage technology solutions, has released its latest Plugged-In: EV Collision Insights report for the second quarter of 2025. The report highlights a notable shift in the electric vehicle sector, with collision claims for battery electric vehicles (BEVs) decreasing for the first time in the United States, while claims for mild hybrid electric vehicles (MHEVs) are on the rise across North America. This analysis also examines the influence of evolving government incentive programs on consumer adoption of BEVs in both the US and Canada.
Key Highlights
- BEV Claims Drop: Collision claims frequency for repairable BEVs in the US fell by 7% last quarter, marking the first decline.
- Hybrid Claims Increase: MHEV claims reached approximately 5% in the US and 4% in Canada, showing jumps of 2% and 9% respectively over the previous quarter, and 21% and 29% over the previous year.
- Market Value Stability: Total loss market values averaged $30,172 for BEVs and $13,850 for internal combustion engine (ICE) vehicles, with slight decreases of about 2% and less than 1% from the first quarter.
- Claims Severity High for EVs: Average severity remains highest for BEVs at $5,903 in the US and $6,633 CAD in Canada, followed closely by plug-in hybrid electric vehicles (PHEVs) at $5,254 and $5,916 CAD.
- Repair Trends: The percentage of parts repaired on BEVs increased slightly to 12%, still below ICE vehicles at 14%, with OEM parts comprising 83% of parts dollars for BEVs versus 63% for ICE.
This decline in BEV claims aligns with a 6% year-over-year reduction in new BEV purchases, despite robust sales earlier in the year. In the US, federal tax incentives are set to expire in September, coupled with a proposal from the Environmental Protection Agency to repeal current greenhouse gas emission regulations. These changes are challenging consumer demand for BEVs. To counteract this, auto manufacturers have ramped up pricing discounts, hitting an all-time high of nearly $8,500 per vehicle in the second quarter.
Meanwhile, the surge in MHEV claims reflects growing adoption of these vehicles. In Canada, MHEV claims severity stands at $5,742 CAD, while gasoline-powered vehicles in the US average $4,938. PHEVs experienced a 3% decline in average total loss market value, whereas MHEVs saw an increase of close to 2%.
The report underscores differences in repair practices between vehicle types. Although BEV repairs involve a higher use of original equipment manufacturer (OEM) parts, the repair rate lags behind traditional ICE automobiles. This could impact overall repair costs and efficiency in the auto insurance and collision repair industries.
Mitchell’s insights are derived from proprietary data and aim to assist insurance carriers, collision repairers, and vehicle manufacturers in managing claims effectively. The company, an Enlyte entity, combines decades of experience with cloud-first applications to support more than 20,000 organizations daily in restoring vehicles and lives.
For detailed trends on BEV and hybrid vehicle claims, download the Q2 2025 Plugged-In: EV Collision Insights report or access previous issues at www.mitchell.com/plugged-in.
About Mitchell: As a leader in auto physical damage technology, Mitchell International, Inc. develops solutions that integrate open platforms, data, and intelligent applications. This enables efficient claims management and safe return of consumers to the road, protecting dreams and restoring lives.
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