Claims frequency for repairable battery
electric vehicles has jumped 45% in the U.S. and 39% in
Canada year-over-year while
increasing more gradually for hybrids.
SAN
DIEGO, Aug. 15, 2024 /PRNewswire/
-- Mitchell, an Enlyte company and leading technology and
information provider for the Property & Casualty (P&C)
claims and Collision Repair industries, today published
its Q2 2024 Plugged-In: EV Collision Insights report. This
edition features the latest U.S. and Canadian claims data on
battery electric vehicles (BEVs), mild hybrid electric vehicles
(MHEVs) and plug-in hybrid electric vehicles (PHEVs)—highlighting
how differences in their complexity and construction are affecting
claim costs and repair operations.
"Although BEV sales have slowed in 2024, sales of mild and
plug-in hybrid automobiles remain strong," said Ryan Mandell, Mitchell's director of claims
performance. "Like BEVs, these vehicles can be costlier to repair
after a collision when compared to their internal combustion
engine, or ICE, counterparts. However, with both an ICE and small
electric battery, mild hybrids are remarkably similar to
gasoline-only powered automobiles when it comes to claims
severity."
In Q2 2024, average claims severity for repairable MHEVs was
$4,726 in the U.S. and $5,302 in Canada. For vehicles with an ICE, it was
$4,806 in the U.S. and $4,958 in Canada, a difference of $80 and $344,
respectively. Since PHEVs rely on a larger, high-voltage battery in
addition to a secondary ICE, their average severity is more closely
aligned to BEVs at $5,059 versus
$5,753 in the U.S. and $5,665 versus $6,534 in Canada.
Other notable findings in this quarter's report include:
- Total Loss Frequency: The total loss frequency of BEVs
and 2021 and newer gasoline-powered vehicles—which are comparable
in their complexity and cost to repair—remains similar at 9.16% for
BEVs in the U.S. versus 9.45% for ICE automobiles and 7.24% versus
8.52% respectively in Canada.
- Repair Operations: Although BEV collision-damage
estimates have a higher average number of mechanical labor hours
than ICE appraisals (5.21% compared to 8.18%), they are less likely
to include frame labor. Frame labor is added when technicians use a
hydraulic frame machine to straighten both full ladder frame
components and unibody structures. The lack of this labor type on
BEV estimates could mean that their design is more effective at
preventing crash energy from damaging the vehicle's structural
components.
- Parts Utilization: OEM parts continue to be used more
frequently in the repair of BEVs, with 89% of the parts dollars on
estimates for repairable BEVs being OEM parts as compared to 65%
for ICE automobiles.
To download the Q2 2024 report, visit the Mitchell website. You
can also subscribe to future issues or find previous reports online
at www.mitchell.com/plugged-in.
About Mitchell International
Headquartered in San Diego,
Calif., Mitchell International, Inc. delivers smart
technology solutions and services to the auto insurance, collision
repair, disability and workers' compensation industries. Through
deep industry expertise, connections throughout the insurance
ecosystem and advanced technology such as artificial intelligence
and cloud-based solutions, Mitchell helps its customers and clients
succeed in today's ever-changing environment. Each month, Mitchell
processes tens of millions of transactions for more than 300
insurance providers, 20,000 collision repair facilities and 70,000
pharmacies. Its comprehensive solution and service portfolio
empowers clients to restore lives after a challenging event.
Mitchell, Genex and Coventry have aligned their joint industry
expertise and advanced technology solutions to form Enlyte, a
parent brand with nearly 6,000 associates committed to simplifying
and optimizing property, casualty and disability claims processes
and services.
For collision repair and property and casualty updates and
perspectives, follow us on LinkedIn or X
(@MitchellRepair and @MitchellClaims).
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SOURCE Mitchell International