Impact Point Affects Claims Severity for EVs vs. ICE Vehicles

Mitchell announced the release of its Q3 2024 Plugged-In: EV Collision Insights report in a press release.

This issue provides an overview of the point-of-impact and severity differences between repairable electric vehicles (EVs) and automobiles with an internal combustion engine (ICE).

Collisions involving front-end impact are the most common and 40% costlier, on average, than those involving rear-end impact. Based on Mitchell data, ICE vehicles have a higher frequency of front-end impact (31.59%) versus EVs (25.88%), which are more likely to sustain rear-end damage (35.98%) than ICE alternatives (27.57%).

“There’s a direct correlation between the primary point of impact and claims severity,” said Ryan Mandell, Mitchell’s director of claims performance. “Even though overall severity remains higher for EVs than for ICE vehicles, understanding these point-of-impact dynamics can help auto insurers better assess risk, manage claims and assist policyholders.”

Among the other notable findings in the Q3 2024 report:

• Claims Frequency and Severity: Claims frequency for repairable collision-damaged EVs rose to 3.01% in the U.S. and 3.97% in Canada last quarter, an increase of 47% and 26% respectively year over year. Average claims severity in the U.S. was $5,560 for EVs, $5,229 for plug-in hybrids, $4,426 for mild hybrids and $4,741 for ICE vehicles. In Canada, it was $6,923 for EVs, $6,171 for plug-in hybrids, $6,366 for mild hybrids and $5,615 for ICE automobiles.

• Total Loss Market Value and Frequency: As price parity increases between EVs and ICE vehicles, it is creating similarities in total loss outcomes. The average total loss market value for EVs was $32,718 in the U.S. and $41,380 in Canada. For 2021 and newer ICE vehicles—which are comparable to EVs in their complexity and cost to repair—it was $31,070 in the U.S. and $42,498 in Canada. Total loss frequency was also nearly identical between automobile types with EVs totaling at a rate of 9.9% in the U.S. and 10.11% in Canada while newer ICE vehicles totaled at a rate of 9.98% in the U.S. and 11.74% in Canada.

• Keys-to-Keys Cycle Time: The U.S. keys-to-keys cycle time average year to date is 19.5 days for EVs versus 16.5 days for ICE alternatives, an 18% difference. In Canada, average cycle time is 20% longer for EVs (17.2 days) compared to gasoline-powered automobiles (14.3 days). Average cycle time for mild and plug-in hybrids also exceeds that of ICE vehicles in both countries.

To download the full report, visit the Mitchell website. You can also access previous issues or subscribe to future reports by completing the form on this web page: www.mitchell.com/plugged-in.