Electric vehicles (EVs) are becoming increasingly popular, but new data from Mitchell International reveals that repairing them after a collision is significantly more expensive than fixing traditional gasoline-powered cars. The report, which analyzes second-quarter 2024 data, highlights the growing financial impact of EV repairs on both consumers and the auto insurance industry.
Higher Repair Costs for EVs
The report shows that when EVs are not deemed total losses, their repair costs are nearly 20% higher than those for gasoline vehicles. On average, EV repairs in the U.S. during Q2 2024 cost $5,753, compared to $4,806 for vehicles with internal combustion engines. This cost disparity is attributed to several factors, including the complex technology and specialized components that EVs require.
EVs More Likely to Be Totaled
While EVs are more expensive to repair, they are also slightly less likely to be declared total losses by insurance companies compared to newer gasoline vehicles. The report notes that 9.16% of EVs involved in accidents were declared total losses, compared to 9.45% of gasoline cars from 2021 and newer models. This similarity suggests that despite the higher repair costs, the decision to total a vehicle is based on more than just the cost of repairs.
Increased Claims and OEM Parts Usage
The report also highlights a 45% increase in claims for EVs during the second quarter of 2024. This rise is expected as more EVs hit the roads and become involved in accidents. Additionally, the newer nature of many EV models has led to a higher use of original equipment manufacturer (OEM) parts in repairs. In fact, 89% of parts dollars spent on EV repairs were for OEM parts, compared to 65% for gasoline vehicles. The reliance on OEM parts further drives up the cost of EV repairs.
Hybrid and Plug-in Hybrid Repair Costs
The report also provides insight into the repair costs for hybrids and plug-in hybrids. While hybrids averaged $4,726 per repair, plug-in hybrids were slightly more expensive, with an average cost of $5,059. Mitchell attributes the higher repair costs for plug-in hybrids to their larger battery packs, which are more costly to replace or repair.
Less Frame Repair, More Appraisal Time
One positive finding from the report is that EVs require less frame repair work compared to gasoline vehicles. This is likely due to the heavier curb weights of EVs and their battery packs, which can act as structural reinforcements during a collision. However, the report also notes that mechanics spent more time appraising EV repairs, with an average of 8.18% of the total repair time spent on appraisals, compared to 5.21% for gasoline vehicles.
The report underscores the challenges that the growing EV market faces in terms of repair costs and insurance implications. As more EVs join the fleet, the need for specialized repair services and the reliance on OEM parts will likely continue to drive up costs, making EV ownership more expensive in the long run. The findings also align with previous reports, including one from 2023, which found that EV repair costs were $963 higher on average than those for gasoline vehicles. This ongoing trend has already impacted companies like Hertz, which cited high repair costs as a reason for slowing down their EV adoption plans.
