Electric vehicle claims keep rising in Canada 

The frequency of claims related to repairable battery electric vehicles (BEV) continues to rise in Canada, up 4.83% in 2025 Q2.  

That’s an 8% quarterly increase, finds Mitchell’s EV Collision Insights Q2 2025 report.  

Average claims costs to repair BEVs in Canada reached $6,633 in Q2. That compares to an average Q2 cost of $5,916 for plug-in hybrids, $5,742 for mild hybrids and $5,156 for internal combustion engine (ICE) vehicles. Overall, claims costs for all four vehicle types declined compared to the Q2 last year.  

Across North America, British Columbia (8.51%) and Quebec (8.13%) were the top two BEV markets for repairable claims frequency. California was third at 6.25%. 

However, changes to government-sponsored incentive programs will threaten EV sales, Mitchell predicts.  

In Quebec, where provincial BEV rebates were temporarily suspended, consumer interest declined 8%, the collision claims company writes.  

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According to J.D. Power, 42% of potential BEV buyers say they would be less likely to shop for an electric automobile without the incentives. 

So, Canada may see slightly softer national sales in Q2 compared to recent quarters. 

On the other hand, while sales of all-electric vehicle are stagnating, sales of mild hybrids are increasing.  

With that, claims frequency for repairable mild hybrids rose 4.33% in Canada during Q2 — a jump of 9% from the previous quarter.  

“For collision repairers and auto insurers, this steady growth represents an opportunity to focus on vehicles that combine cost advantages like automobiles with an internal combustion engine (ICE) and less specialized training than is necessary for BEVs,” writes Ryan Mandell, vice president of strategy, market intelligence and auto physical damage.  

“Without the dramatic policy fluctuations affecting all-electric options, mild hybrids also present a more predictable and financially stable segment for carrier underwriting models.” 

In Canada, Tesla’s market share plummeted 16% to eighth place among potential shoppers, Mitchell writes. The company predicts traditional automakers such as Hyundai, Kia, Toyota, Ford and Chevrolet could capture most of the remaining BEV market share.  

Plus, in Canada, repairable BEV claims costs for the Tesla Model 3 and Tesla Model Y rose 1.25% and 1.90% respectively. Comparatively, these costs dropped for the Ford Mustang Mach-E (-0.20%), Hyundai Ioniq 5 (-1.06%), and the Hyundai Kona EV (-0.74%).  

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.