Claims severity for EVs outpace ICE-powered vehicles – report

A brand new report has provided insights on the disparities in collision claims frequency and restore procedures between electrical automobiles (EVs) and inside combustion engine (ICE) cars.

Printed by Mitchell, a know-how and data supplier serving the P&C claims and collision restore sectors, the report discovered that repairable claims frequency for EVs rose 1.49% within the US and a couple of.64% in Canada throughout the second quarter of the yr.

The common severity for all EVs was larger by $963 within the US and $1,328 in Canada in comparison with vehicles powered by ICE. This differential grew to become extra pronounced when particularly analyzing Tesla fashions, reaching $1,589 and $1,600 respectively.

Nonetheless, he famous that EVs are much less probably than ICE automobiles to be non-drivable following an accident as a result of they’ve fewer shifting elements, even with better interconnectivity between elements.

“Until an EV will get hit from behind, it has the next probability of drivability,” mentioned Mandell. “Variations like these could have a dramatic impact on the auto insurance coverage and collision restore markets, given the latest development in EV adoption.”

US EV gross sales has set a document within the final quarter, based on figures from Cox Automotive, with practically 300,000 battery-electric automobiles bought. It is a 48.4% enhance over the identical interval in 2022.

Whereas the speed of EV adoption has been slower in Canada, the Worldwide Power Company famous international EV gross sales are more likely to scale as much as 14 million models in 2023, with a projected acceleration in new purchases throughout the second half of the yr.

Different findings concerning collision claims

Mitchell’s newest report additionally targeted on the utilization of authentic tools producer (OEM) elements. It discovered that 90.75% of repairable EVs depend on such elements in comparison with 66.50% of ICE cars.

Furthermore, the share of elements that have been repaired versus changed in EVs was decrease at 13.49% in comparison with 19.20% for ICE-powered automobiles.

The report moreover highlighted the position of paint refinishing labor hours in driving collision declare bills. EVs recorded a median of 8.51 refinish hours in Q2, barely exceeding the determine of 8.02 for ICE cars.

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