How collision claims are trending for electric vehicle repairs

Despite slower battery electric vehicle (BEV) sales in North America last year, claims for repairable electric vehicles in Canada and the U.S. keep rising, according to a new report from Mitchell, an Enlyte Company.

“Even as BEV adoption slowed in North America last year following the end of government tax incentives [in Canada and the U.S.], the auto insurance and collision repair industries still saw claims volume rise since more of these automobiles are on the road than ever before,” says Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, in a press release.

In 2025, BEV purchases in the U.S. declined approximately 2% from 2024, according to Mitchell’s 2025 year in review Plugged-In: EV Collision Insights report, released Thursday. It’s not clear if there was also a drop in Canadian BEV purchases.

Still, repairable EV claims also increased in both countries, particularly in Canada. Claims frequency for collision-damaged BEVs in Canada last year represented 4.77% of all repairable auto claims, 4.44% for mild hybrid electric vehicles (MHEVs) and 1.55% for plug-in hybrid electric vehicles (PHEVs). This was a dramatic increase of 24% for BEVs, 29% for MHEVs and 26% for PHEVs in the last 12 months, the report says.

In the U.S., BEVs represented 3.07% of all repairable auto claims, up 14.1% from 2024. MHEVs came in at 4.82% and PHEVs at 0.89%, a 20% and 6% year-over-year increase, respectively.

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Collision claims rise for electric vehicles in Canada

As Canadians increasingly embraced electric vehicles in 2024, the collision repair industry is seeing claims frequency rising.

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“Due to their dense electrical architectures, software-driven systems and interconnected, sensor-heavy designs, these vehicles require additional diagnostic and calibration operations when damaged that can add cost, complexity and cycle time to each repair,” Mandell explains.

While repairable EV claims increased, average claims severity for repairable BEVs fell by 2% in Canada (from $7,410 in 2024 to $7,253 in 2025) and 5% in the U.S., Mitchell reports. While remaining flat in both countries for PHEVs, claim costs for MHEVs increased by 4% to $5,054 in the U.S. and held steady in Canada at $6,267.

The report also found total loss market values dropped across most powertrain types, with BEVs experiencing the largest decline of 13% in Canada and 6% in the U.S. “This was the result of accelerated depreciation, increased availability of lower-cost models and shifting consumer sentiment,” the release says.

When it comes to the top North American BEV markets based on repairable claims frequency in 2025, British Columbia takes the lead at 8.48%, up 1% from 2024. Quebec comes in second at 8.21% (up 2.53% from 2024), followed by California at 6.58% (up 0.99% from 2024).

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.