Also, the U.S. keys-to-keys cycle time average year to date is 19.5 days for BEVs versus 16.5 days for ICE alternatives, an 18% difference
San Diego—Mitchell’s recently released Q3 2024 report provides an overview of the point-of-impact and severity differences between repairable battery electric vehicles (BEVs) and vehicles with an internal combustion engine (ICE).
Notably, the report finds that BEVs are more likely to sustain rear-end impact in a collision where gasoline-powered automobiles have a higher frequency of front-end impact. This is significant as front-end accidents are nearly 40% costlier to repair, on average.
“There’s a direct correlation between the primary point of impact and claims severity,” said Ryan Mandell, Mitchell’s director of claims performance. “Even though overall severity remains higher for BEVs than for ICE vehicles, understanding these point-of-impact dynamics can help auto insurers better assess risk, manage claims and assist policyholders.”
Among the other key findings in the Q3 2024 report:
• Claims Frequency and Severity: Claims frequency for repairable collision-damaged BEVs rose to 3.01% in the U.S. and 3.97% in Canada last quarter, an increase of 47% and 26% respectively year over year. Average claims severity in the U.S. was $5,560 for BEVs, $5,229 for plug-in hybrids, $4,426 for mild hybrids and $4,741 for ICE vehicles. In Canada, it was $6,923 for BEVs, $6,171 for plug-in hybrids, $6,366 for mild hybrids and $5,615 for ICE automobiles.
• Total Loss Market Value and Frequency: As price parity increases between BEVs and ICE vehicles, it is creating similarities in total loss outcomes. The average total loss market value for BEVs was $32,718 in the U.S. and $41,380 in Canada. For 2021 and newer ICE vehicles — which are comparable to BEVs in their complexity and cost to repair — it was $31,070 in the U.S. and $42,498 in Canada. Total loss frequency was also nearly identical between automobile types with BEVs totaling at a rate of 9.9% in the U.S. and 10.11% in Canada while newer ICE vehicles totaled at a rate of 9.98% in the U.S. and 11.74% in Canada.
• Keys-to-Keys Cycle Time: The U.S. keys-to-keys cycle time average year to date is 19.5 days for BEVs versus 16.5 days for ICE alternatives, an 18% difference. In Canada, average cycle time is 20% longer for BEVs (17.2 days) compared to gasoline-powered automobiles (14.3 days). Average cycle time for mild and plug-in hybrids also exceeds that of ICE vehicles in both countries.
Mitchell’s full Plugged-In: EV Collision Insights Q3 2024 report below
You can also access previous issues or subscribe to future reports by completing the form on this web page: www.mitchell.com/plugged-in.
In Q3 2024, claims frequency for repairable collision-damaged battery electric vehicles (BEVs) rose to 3.01% in the U.S. and 3.97% in Canada, an increase of 47% and 26% respectively year over year (YOY). While BEV sales have slowed, they still represent 8% of new vehicle sales in the U.S. (up 11.3% YOY) and 9.49% in Canada (up 18.47% YOY).
According to the U.S. Energy Information Administration, hybrid sales are responsible for the slight gain in market share for electrified powertrains. “Hybrid sales accounted for 8.6% of the total light-duty market in 1Q24 and increased to 9.6% in 2Q24. Plug-in hybrid electric vehicle (PHEV) sales increased slightly from 1.7% to 2% of the total light-duty market year over year.”
Lately, automotive manufacturers seem to favor hybrids with companies such as Ford transitioning some manufacturing plants to plug-in platforms rather than full BEV powertrains. However, headwinds appear to be forming for wider spread PHEV adoption as J.D. Power reported that, “PHEVs score significantly lower than BEVs in nine of the 10 categories tracked in the J.D. Power 2024 U.S. Electric Vehicle Experience Ownership Study, particularly when it comes to battery range and total cost of ownership.”
In terms of keys-to-keys cycle time for collision repairs, the U.S. year-to-date average for BEVs is 19.5 days versus 16.5 days for automobiles with an internal combustion engine (ICE) — an 18% difference. Similarly, cycle time in Canada is 20% longer for BEVs (17.2 days) in 2024 compared to gasoline-powered options (14.3 days). In both countries, average cycle times for mild hybrid electric vehicles (MHEVs) and PHEVs also exceed those of ICE alternatives.
Last quarter, average claims severity for repairable vehicles in the U.S. was $5,560 for BEVs, $5,229 for PHEVs, $4,426 for MHEVs and $4,741 for ICE options. That is a YOY decrease of between 2% and 14%. In Canada, average claims severity was $6,923 CAD for BEVs, $6,171 CAD for PHEVs, $6,366 CAD for MHEVs and $5,615 CAD for ICE vehicles. However, unlike the U.S., severity has increased in Canada over the same period for all powertrains except BEVs.
As price parity increases between BEVs and ICE vehicles, it is creating greater similarities in total loss outcomes. The average total loss market value for BEVs in Q3 2024 was $32,718 in the U.S. and $41,380 CAD in Canada. For 2021 model year and newer ICE vehicles — which are comparable to BEVs in their complexity and cost to repair—total loss market values were $31,070 and $42,498 CAD respectively.
Total loss frequency was also nearly identical with BEVs totaling at a rate of 9.9% in the U.S. and 10.11% in Canada versus 9.98% and 11.74% respectively for 2021 model year and newer ICE automobiles. Canada saw a spike in total loss frequency due to heavy catastrophic claims activity in the third quarter, which skews some results — especially when compared to historical norms.
BEVs are more likely to sustain rear-end impact in a collision where gasoline-powered automobiles have a higher frequency of front-end impact. This is significant as front-end accidents are nearly 40% costlier to repair, on average.
An additional variable that contributes to differences in severity between BEVs and ICE-powered automobiles is the dynamics of point-of-impact frequency. Front-end impacts are the most common, and that remains true for ICE vehicles.
For example, 31.59% of repairable ICE automobiles have a front-end point of impact (left front, right front or front center) compared to 25.88% for BEVs. However, the same pattern does not exist for BEVs where the point of impact is most likely to be the rear end of the vehicle (left rear, right rear or rear center) with 35.98% of BEV repairs classified as a rear-end impact versus only 27.57% for ICE vehicles.
This is significant as front-end accidents are nearly 40% costlier than rear-end accidents, on average. The difference in point-of-impact dynamics is likely due to two main factors: 1) newer average model year, and thus more comprehensive, front crash avoidance technologies, and 2) different braking dynamics for BEVs when driving in single-pedal mode, which may result in more rapid deceleration than expected by the driver.
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