Summary
- Insurance data shows EV repair costs on par with newer ICE vehicles
- Average EV repair claim in the US last year was $6,236, with a 3% decrease compared to 2023
- Total loss frequency for EVs increased to 10.2%, influenced by record sales numbers
- Tesla Model Y had the highest frequency of insurance claims at 31.43%
- Ford Mustang Mach-E ranked third in insurance claims for EVs with 6.37%
Article
Insurance Data Shows EVs are as Expensive as Newer ICE Vehicles to Repair
One of the biggest concerns for potential electric vehicle (EV) owners is the cost of repairs, especially when it comes to the expensive battery pack. However, recent data from Mitchell, a company that provides technology solutions to the auto insurance and collision repair industries, shows that the average repair cost for an EV in the United States is on par with a newer model combustion car. In 2024, the average claim to repair an EV was $6,236, down 3% from the previous year.
Costs of Repairing EVs are Decreasing
Not only are repair costs for EVs comparable to newer combustion vehicles, but they are also decreasing slightly. The average claim severity for repairable EVs dropped by 3% in the United States to $6,236. Plug-in hybrids (PHEVs) had an average insurance claim of $5,583, while combustion cars had an average repair bill of $5,066. Although Mitchell did not specify the model years included in these statistics, newer ICE vehicles had an average severity cost of $6,127, which is just $109 less than the average EV repair bill.
Total Loss Frequency is Increasing for EVs
Despite the decrease in repair costs, the total loss frequency for EVs is on the rise. The percentage of EVs totaled by insurers out of all the cars that needed repairs increased from 8% in 2023 to 10.2% in 2024. This increase is influenced by the record sales numbers of EVs in the United States. The claims frequency for collision-damaged, repairable EVs also saw a significant uptick, going up by 38% to 2.71% year-over-year.
Insurance Claims Frequency for Specific EV Models
When looking at insurance claims frequency for specific EV models, the Tesla Model Y had the highest percentage of claims at 31.43%, followed closely by the Tesla Model 3 at 29.86%. The Model Y saw a 7.58% increase in claims, while the Model 3 had 4.67% fewer claims compared to the previous year. The Ford Mustang Mach-E came in third with 6.37% of insurance claims, followed by the Tesla Model S at 5.53% and the Tesla Model X at 4.58%.
Implications for EV Owners
For current and potential EV owners, the data on repair costs and insurance claims frequency provides valuable insights. While there may be concerns about the cost of repairing an EV, the statistics show that EVs are comparable to newer combustion vehicles in terms of repair costs. Additionally, the slight decrease in repair costs and the increase in total loss frequency indicate the need for comprehensive insurance coverage for EV owners.
Looking Ahead: Trends in EV Repair Costs
As EV technology continues to evolve and more EVs hit the roads, it will be interesting to see how repair costs and insurance claims frequency change over time. By staying informed about these trends and understanding the implications for ownership, EV owners can make informed decisions about maintenance, repair, and insurance coverage. As the EV market grows, it is important for insurers, manufacturers, and owners to work together to ensure that EVs remain a viable and cost-effective option for consumers.
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