Claims severity for EVs outpace ICE-powered automobiles – report

A brand new report has provided insights on the disparities in collision claims frequency and restore procedures between electrical automobiles (EVs) and inside combustion engine (ICE) cars.

Published by Mitchell, a expertise and knowledge supplier serving the P&C claims and collision restore sectors, the report discovered that repairable claims frequency for EVs rose 1.49% within the US and a couple of.64% in Canada in the course of the second quarter of the yr.

The common severity for all EVs was greater by $963 within the US and $1,328 in Canada in comparison with automobiles powered by ICE. This differential turned extra pronounced when particularly analyzing Tesla fashions, reaching $1,589 and $1,600 respectively.

However, he famous that EVs are much less probably than ICE automobiles to be non-drivable following an accident as a result of they’ve fewer transferring elements, even with higher interconnectivity between elements.

“Unless an EV gets hit from behind, it has a higher likelihood of drivability,” mentioned Mandell. “Differences like these will have a dramatic effect on the auto insurance and collision repair markets, given the recent growth in EV adoption.”

US EV gross sales has set a document within the final quarter, in keeping with figures from Cox Automotive, with almost 300,000 battery-electric automobiles offered. This is a 48.4% enhance over the identical interval in 2022.

While the speed of EV adoption has been slower in Canada, the International Energy Agency famous world EV gross sales are prone to scale as much as 14 million models in 2023, with a projected acceleration in new purchases in the course of the second half of the yr.

Other findings concerning collision claims

Mitchell’s newest report additionally targeted on the utilization of authentic tools producer (OEM) elements. It discovered that 90.75% of repairable EVs depend on such elements in comparison with 66.50% of ICE cars.

Moreover, the proportion of elements that have been repaired versus changed in EVs was decrease at 13.49% in comparison with 19.20% for ICE-powered automobiles.

The report moreover highlighted the function of paint refinishing labor hours in driving collision declare bills. EVs recorded a mean of 8.51 refinish hours in Q2, barely exceeding the determine of 8.02 for ICE cars.

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