Collision Claims for Battery Electric Vehicles Shrink for the First Time in the U.S. While Hybrid Claims Surge

SAN DIEGO, Aug. 21, 2025 /PRNewswire/ -- Mitchell, a leader in the development of innovative auto physical damage technology solutions, today announced the release of its latest Plugged-In: EV Collision Insights report. The Q2 2025 edition examines the decrease in collision claims frequency for repairable battery electric vehicles (BEVs) in the U.S. and increase in mild hybrid electric vehicle (MHEV) claims across North America. It also explores how changes to government incentive programs are impacting consumer adoption of BEVs on both sides of the border.

"We're experiencing a significant shift in the electric vehicle landscape as the number of BEV claims in the U.S. dropped for the first time last quarter by 7%," said Ryan Mandell, Mitchell's vice president of strategy and market intelligence. "This decline coincides with a 6% year-over-year reduction in new BEV purchases despite strong sales in early 2025. Meanwhile, claims for MHEVs continue to rise, reaching approximately 5% in the U.S. and 4% in Canada. That is a jump of 2% and 9% respectively over the previous quarter and 21% and 29% over the previous year."

With U.S. federal tax incentives set to expire in September and a proposal from the Environmental Protection Agency to repeal current greenhouse gas emission regulations, consumer demand for BEVs is being tested. To boost sales, auto manufacturers have expanded BEV pricing discounts, which reached an all-time high of nearly $8,500 per vehicle in the second quarter.

Among the report's other notable findings:

• Total Loss Market Values: Total loss market values were relatively stable, averaging $30,172 for BEVs and $13,850 for automobiles with an internal combustion engine (ICE). That represents a decrease of approximately 2% and less than 1% respectively over the first quarter. Plug-in hybrid electric vehicles (PHEVs) also experienced a 3% decline in average total loss market value while MHEVs increased in value by close to 2%.
• Claims Severity: Average severity for repairable automobiles remains the highest for BEVs at $5,903 in the U.S. and $6,633 (CAD) in Canada. PHEVs were a close second at $5,254 and $5,916 (CAD), respectively, followed by gasoline-powered vehicles in the U.S. ($4,938) and mild hybrids in Canada ($5,742 CAD).
• Repairable Parts: Although the percentage of parts repaired on BEVs increased slightly over the previous quarter (12%), it still fell short of ICE automobiles (14%). OEM parts remain more frequently used in BEV repairs with 83% of the parts dollars on estimates for repairable vehicles designated for OEM parts versus 63% for ICE alternatives.

Download the Q2 2025 Plugged-In: EV Collision Insights report for more detail on the latest BEV and hybrid vehicle claim trends. You can also access previous issues or subscribe to future publications by visiting www.mitchell.com/plugged-in.

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About Mitchell, an Enlyte Company
Mitchell International, Inc. is a leader in the development of innovative auto physical damage technology solutions. Combining decades of experience with an open platform, proprietary data and intelligent, cloud-first applications, we help insurance carriers, collision repairers and vehicle manufacturers protect dreams and restore lives. Each day, more than 20,000 organizations turn to Mitchell for support efficiently managing claims and safely returning consumers to the road.

SOURCE Mitchell International