EV Collision Claims Continue to Grow Despite Cooling Sales

Electric vehicle collision claims continued to rise across North America in 2025 even though sales of new battery electric vehicles (BEVs) softened.

Repairable BEV claims increased by 14 percent in the United States and 24 percent in Canada while new BEV sales in the United States slipped by roughly 2 percent. With more electrified vehicles entering service over recent years, the volume of repairable claims continued to build regardless of short-term market fluctuations.

Plug in hybrid vehicles also contributed to the upward trend, recording a 6 percent increase in repairable claims in the United States and a 26 percent rise in Canada. Mild hybrids outpaced both categories with increases of 20 percent and 29 percent respectively. Analysts note that the broader electrified fleet has continued to expand even as adoption rates cool, maintaining upward pressure on claims.

Workshops report that repairs remain challenging due to comprehensive electrical architectures and extensive sensor arrays. BEVs required an average of 1.70 calibration procedures per repair estimate in 2025, compared with 1.63 for hybrids and 1.54 for combustion engine vehicles. These added diagnostic steps increase labour intensity and time required for completion.

Vehicle values also reflected shifting market conditions. Total loss valuations for BEVs dropped by 6 percent in the United States and 13 percent in Canada as depreciation accelerated and more affordable models entered the market. Repair severity moderated slightly. Average BEV repair costs fell by 5 percent in the United States and 2 percent in Canada. Mild hybrid repairs in the United States increased by 4 percent to R81875 ($5054) while holding steady in Canada at R101525 ($6267). Additional industry findings showed average BEV repair severity in the United States at R100197 ($6185) during the third quarter of 2025, signalling stabilising price trends.

Experts emphasise that collision volumes remain closely tied to the expanding vehicle parc rather than sales data alone. BEV repairs depend heavily on original equipment parts, which can elevate costs and extend repair cycles when supply tightens.