EV Collision Claims Rise Even as Sales Falter: Report

Why It Matters

Rising claim volumes and repair complexity increase costs for insurers and collision shops, tightening margins and potentially raising premiums for EV owners.

Key Takeaways

• US EV collision claims up 14%, Canada 24%.
• BEV sales fell 2% while repair claims rose.
• PHEV repairable claims +6% US, +26% Canada.
• BEVs need 1.70 calibrations per repair estimate.
• Total‑loss values dropped 6% US, 13% Canada.

Pulse Analysis

The latest Mitchell International data underscores a paradox in the North American EV market: while battery‑electric vehicle (BEV) sales have slipped marginally, the frequency of collision claims is climbing. The slowdown follows the expiration of federal tax credits, which dampened new‑car demand, yet the existing EV fleet continues to age on public roads. This dynamic creates a larger base of vehicles prone to accidents, pushing claim counts upward even as fewer new units roll off the lot.

Beyond sheer volume, the report highlights the technical intricacies of modern EV repairs. Dense electrical architectures, sensor‑rich systems, and software‑controlled components demand an average of 1.70 calibrations per BEV repair estimate—higher than the 1.63 for hybrids and 1.54 for internal‑combustion engines. Each calibration adds labor hours, specialized equipment costs, and longer shop cycles, inflating the overall expense for insurers and repair facilities. Consequently, collision‑repair shops must invest in training and diagnostic tools to stay competitive, while insurers reassess risk models to accommodate higher per‑claim expenditures.

The decline in total‑loss values—6% in the U.S. and 13% in Canada—reflects broader market forces such as accelerated depreciation, consumer sentiment shifts, and the influx of lower‑priced EV models. For insurers, this means a tighter balance between claim severity and payout ratios, potentially prompting premium adjustments for EV owners. As the EV ecosystem matures, stakeholders across the insurance, repair, and manufacturing sectors will need granular data to navigate cost pressures and sustain profitability.

EV Collision Claims Rise Even as Sales Falter: Report

February 19, 2026

A new report suggests that while electric‑vehicle sales have slowed, collision claims in the U.S. and Canada have increased, according to auto physical‑damage solutions provider Mitchell International.

Its latest report, “Plugged‑In: EV Collision Insights,” revealed that collision claims rose 14 % in the United States and 24 % in Canada.

While sales of new battery‑electric vehicles (BEVs) decreased approximately 2 % in the U.S., claims for repairable vehicles continued to climb.

Image 1 – (illustration related to the report)

The share of repairable claims also increased by 6 % for plug‑in hybrid electric vehicles (PHEVs) and 20 % for mild‑hybrid electric vehicles (MHEVs) year‑over‑year in the U.S., and 26 % and 29 % respectively in Canada.

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

In 2025, BEVs averaged 1.70 calibrations per estimate compared with 1.63 for hybrids and 1.54 for automobiles with an internal‑combustion engine (ICE).

Total‑loss market values dropped across most power‑train types, with BEVs experiencing the largest decline—6 % in the U.S. and 13 % in Canada, the report found. Shifting consumer sentiment, accelerated depreciation, and increased availability of lower‑cost models contributed to the decline.

Average severity for repairable BEVs fell by 5 % in the U.S. and 2 % in Canada. While remaining flat in both countries for PHEVs, claim costs for MHEVs increased by 4 % to $5,054 in the U.S. but held steady in Canada at $6,267.

Image 2 – (illustration related to claim data)