Featured Report on EV insurance

Source: EV repair costs continue to outpace those of ICE vehicles | PropertyCasualty360

Insurance claim costs to repair electric vehicles continued outpacing those of vehicles with an internal combustion engine (ICE), according to Mitchell’s second-quarter EV collision report. On average, the cost to repair EVs was $963 higher in the U.S. and $1,328 higher in Canada.

Mitchell noted the cost to repair Teslas in the U.S. is more than $1,500 higher compared with ICE vehicles. In Canada, Tesla repair costs are around $1,600 higher.

The reliance on the original manufacturer for parts and the need for more refinish hours continue to be higher for EVs compared with ICE vehicles, Mitchell reported. However, EVs tend to need fewer parts repaired.

Further, EVs tend to be designated as “non-drivable” at a lower frequency than their ICE counterparts. According to Mitchell’s review of claims data, only 10.31% of EVs were classified as non-drivable compared to 13.11% of ICE vehicles during the second quarter of 2023. However, EVs are more likely to be designated non-drivable if they are hit from the rear because some powertrain components are located in the back of these vehicles.

“Despite greater interconnectivity between components, they (EVs) have fewer moving parts,” Ryan Mandell, director of claims performance at Mitchell, said in a release. “So, unless an EV gets hit from behind, it has a higher likelihood of drivability. Differences like these will have a dramatic effect on the auto insurance and collision repair markets, given the recent growth in EV adoption.”
. . . ​

I have direct experience with this as my BMW i3-REx door was backed into in a parking lot. I closed the door and drove home. The only problem was the passenger door would not fully open. Since I had collision, I filed a claim.

The total repair cost was ~$1,300 but I only got $265 from my former insurance company. The additional collision cost would exceed $1,300 if I kept it not counting what they would charge for making a claim. So I paid off the car loan and have a different insurance company with liability only.

As for parts, my Tesla has had other repairs including the underbody shields. Tesla parts prices are reasonable but doing my own labor significantly cuts the cost. One other part of the report:

During 2023’s second quarter, EVs saw repairable claims frequency increase 1.49% in the U.S., while Canada saw a 2.64% increase. Tesla vehicles still make up the lion’s share of EV repairs, accounting for nearly three-quarters of all EVs repaired during the period.​

This increase could easily be the result of a larger portion of EVs in the vehicle fleet.

Bob Wilson