Electric vehicle (EV) collision repairs continue to cost more than those of internal combustion vehicles, as reported by Mitchell International. The report, based on second-quarter 2024 data, shows that EVs have similar rates of being declared total losses by insurance companies compared to newer gasoline vehicles. However, when not totaled, EVs cost nearly 20% more to repair than comparable gasoline vehicles, with repair costs averaging $5,753 in the U.S. in Q2.
The Rising Cost of EV Collision Repairs
The rate of claims for EVs increased by 45% in the second quarter, reflecting the growing number of EVs on the road. The newness of many EV models also contributes to higher repair costs, as 89% of parts dollars spent on EV repairs go towards OEM parts compared to 65% for combustion vehicles. Despite requiring less frame repair work, mechanics spend more time appraising EV repairs than those of combustion vehicles.
Comparison with Hybrids and Plug-In Hybrids
When compared to hybrids and plug-in hybrids, EV repair costs still remain higher. Hybrids had an average repair cost of $4,726, while plug-in hybrids had costs amounting to $5,059 in the U.S. in Q2. The use of larger battery packs in plug-in hybrids contributes to their higher repair costs compared to traditional combustion vehicles.
Implications on the Industry
These findings have significant implications for the auto insurance and collision repair industries. High collision repair costs have been cited as a key factor in companies like Hertz slowing down their EV plans. Additionally, the higher repair costs for EVs contribute to them being more expensive to insure than hybrids currently.
Future Trends and Considerations
As the EV market continues to expand and evolve, it will be crucial for insurers, repair shops, and manufacturers to address the challenges associated with higher repair costs. Strategies such as promoting the use of aftermarket parts and developing specialized training programs for EV repairs may help mitigate some of the cost differentials between EVs and internal combustion vehicles.
Conclusion
In conclusion, EV collision repairs remain more costly than those of gasoline vehicles, with repair costs averaging nearly 20% higher for EVs. The increasing rate of EV claims and the higher use of OEM parts in repairs contribute to this cost disparity. As the EV market grows, stakeholders in the auto industry will need to find innovative solutions to address these challenges and ensure the continued growth and success of electric vehicles.