Hybrid, EV repair costs outpace gas vehicles

Mitchell’s quarterly report highlights the rising costs and repair challenges for electric and hybrid vehicles in Canada, with claims data showing significant differences compared to gasoline-powered vehicles.

As hybrid and electric vehicles gain popularity in Canada, new data from Mitchell’s Q2 2024 Plugged-In: EV Collision Insights report found that repair costs for these vehicles continue to exceed those of traditional gasoline-powered cars, particularly in the Canadian market.

The latest report from Mitchell shed light on the complexities and costs associated with repairing battery electric vehicles (BEVs), mild hybrid electric vehicles (MHEVs), and plug-in hybrid electric vehicles (PHEVs) in Canada and the U.S.

According to the report, Canadian repair costs for MHEVs average $5,302 per claim, compared to $4,958 for vehicles with internal combustion engines (ICEs). The gap widens significantly when looking at PHEVs and BEVs, with average repair costs of $5,665 and $6,534, respectively.

In the U.S., the gap between MHEVs and ICEs was much smaller with repair costs coming in at $4,726 for hybrids, compared to $4,806 for ICE. PHEVs came in at $5,059 and BEVs at $5,753.

“Like BEVs, [PHEVs] can be costlier to repair after a collision when compared to their internal combustion engine, or ICE, counterparts,” observed Ryan Mandell, Mitchell’s director of claims performance. “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.”

As seen above, repair costs for hybrids and electric vehicles in Canada are notably higher than in the United States. For example, while the average repair cost for a BEV in the U.S. stands at $5,753, Canadian BEV repairs average $6,534 — a difference of nearly $800.

Looking at total loss frequency, BEVs and 2021 and newer gasoline-powered vehicles in Canada show similar numbers, with BEVs at 7.24 per cent and ICE vehicles at 8.52 per cent. This is slightly lower than the U.S. figures, where BEVs and ICE vehicles have total loss frequencies of 9.16 per cent and 9.45 per cent, respectively.

The report also found that BEVs require a higher average number of mechanical labour hours in collision-damage estimates (8.18 per cent) compared to ICE vehicles (5.21 per cent). However, BEVs are less likely to need frame labour, indicating that their design may be more effective in preventing structural damage during collisions.

Original equipment manufacturer parts are used significantly more in BEV repairs, accounting for 89 per cent of the parts dollars on repairable BEVs, compared to 65 per cent for ICE vehicles, Mitchell found.