Electric vehicles (EVs) have long been seen as a costly alternative to traditional combustion engine vehicles, especially when it comes to repairs. The perception that the massive battery pack in an EV would lead to exorbitant repair bills has deterred many potential buyers from making the switch. However, recent data from insurance companies is challenging this notion.
According to Mitchell, a company specializing in technology solutions for the auto insurance and collision repair industries, the average cost of repairing an EV in the United States last year was comparable to that of a newer model combustion car. The average claim for repairing an EV was $6,236, which was only 3% lower than the previous year. This data suggests that EVs are not significantly more expensive to repair than their traditional counterparts.
Furthermore, the average severity of repair claims for plug-in hybrid vehicles (PHEVs) was $5,583, while combustion cars had an average repair bill of $5,066. This indicates that the costs of repairing different types of vehicles are becoming more aligned. Mitchell did not specify the model years included in these statistics, but noted that newer model ICE vehicles had an average repair severity of $6,127 last year, which was only slightly lower than that of EVs.
Despite the similarities in repair costs, there are some differences in the insurance claims data for EVs. The total loss frequency for EVs increased from 8% in 2023 to 10.2% last year, likely influenced by the surge in EV sales in the U.S. The frequency of collision-damaged, repairable EVs also saw a significant increase of 38% year-over-year.
Among EV models, the Tesla Model Y had the highest frequency of insurance claims at 31.43%, followed by the Tesla Model 3 at 29.86%. The Ford Mustang Mach-E, Tesla Model S, and Tesla Model X also had notable percentages of insurance claims. These statistics highlight the importance of considering insurance costs when purchasing an EV.
In conclusion, while EVs may have been perceived as more expensive to repair than traditional vehicles, recent data suggests that the costs are becoming more comparable. As EV technology continues to evolve and become more mainstream, it is likely that repair costs will continue to normalize. Potential EV buyers should consider all factors, including insurance costs, when making their decision.