Mitchell's report indicates that repairable EV insurance claims have surged by 40% year-over-year, influenced by the increased presence of electric vehicles. However, the average repair costs for EVs are notably higher—29% greater than traditional ICE vehicles—indicating the challenges of maintaining and repairing advanced electric systems.
The report highlights that the longer repair times for EVs, which often take nearly twice as long compared to ICE vehicles, significantly contribute to the rise in repair costs. These extra hours are primarily associated with handling high-voltage batteries during collisions, requiring careful safety protocols.
As a consequence of these expensive repairs and high total-loss rates of nearly 10%, insurance companies are increasingly opting to declare EVs totaled following even minor accidents. This troubling trend is exacerbated by the overall decline in the value of used EVs due to market pressures.
Ryan Mandell's insights draw attention to the broader issues affecting the EV sector, stating that, 'Slowing new sales, manufacturer price reductions, and changing consumer sentiment are impacting the value of used EVs.' This environment is contributing substantially to the increasing total loss frequency among collision-damaged electric vehicles.
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