Claims rise in both the US and Canada
By Mika Pangilinan
May 17, 2023 Share
There was an increase in the frequency of repairable claims for electric vehicles (EV) during the first quarter of 2023, according to a new report by Mitchell, a technology and information provider for the P&C and collision repair industries.
Shedding light on EV collision trends, the report indicated that the US witnessed a rise in repairable claims frequency to 1.13%, while Canada experienced a higher increase at 2.41%.
Comparing data from Q4 2022 and Q1 2023, the report also found that EV average repairable severity has decreased to $4,749 in the US and $6,406 in Canada. Despite the decrease, these figures remain higher than the average for internal combustion engine (ICE) vehicles, according to Mitchell.
The report also revealed that OEM parts usage and the percentage of parts repaired increased to 90.76% and 12.68%, respectively.
Additionally, refinish time rose to nearly an hour more than for ICE automobiles, which has added to claim costs. Models new to the market have also begun entering US collision repair facilities for the first time.
“EV sales broke records in 2022 and the combination of high gas prices, government incentives and increased vehicle production helped drive consumer demand,” said Ryan Mandell, director of claims performance at Mitchell. “With more EVs on the road, there will naturally be more EV collision claims. That puts a strain on auto insurers, who must balance policyholder expectations with higher-than-average vehicle repair costs and cycle time. It also puts a strain on collision repairers tasked with properly and safely restoring these automobiles to OEM standards.”
Mitchell’s EV collision insights report comes amid calls for improved access to EV battery data and repairs from insurers.
Earlier this year, insurers warned that premiums for EVs would likely rise unless manufacturers address hurdles related to battery data access and repairing packs after minor collisions.
“The number of cases is going to increase, so the handling of batteries is a crucial point,” Christoph Lauterwasser, managing director of the Allianz Center for Technology, told Reuters last March.
According to the International Energy Agency (IEA), global EV sales are projected to grow by 35% this year, reaching an estimated 14 million units by the end of 2023. If these projections hold true, the market share of EVs in the overall car market would have risen from approximately 4% in 2020 to 14% in 2022 and 18% in 2023.
What are your thoughts on this story? Feel free to comment below.
Related Stories
- Florida’s electric vehicles are catching fire after Hurricane Ian
- Do electric vehicles cost more to insure than gasoline-powered cars?
Fetching comments… Please enable JavaScript to view the comments powered by Disqus.
LATEST NEWS
INSURANCE NEWS
How Nationwide evolved from a P&C insurer
INSURANCE NEWS
Which are the outstanding networks and alliances in America?
INSURANCE NEWS
Repairable EV collision claims on the rise – report
INSURANCE NEWS
Insurance groups speak out against Illinois bill
