Claims are up in the US and Canada
Motor and Fleet
By Mika Pangilinan
There will be an increase in the number of repair claims for electric vehicles (EV) in the first quarter of 2023, according to a new report by Mitchell, a technology and information provider for P&C and collision repair industries.
Shedding light on EV crash trends, the report shows that the US witnessed an increase in repairable claims frequency to 1.13%, while Canada experienced a higher increase of 2.41%.
Comparing data from Q4 2022 and Q1 2023, the report also found that EV average repairable severity decreased to $4,749 in the US and $6,406 in Canada. Despite the decline, these numbers remain higher than the average for internal combustion engine (ICE) vehicles, according to Mitchell.
The report also revealed that the use of OEM parts and the percentage of repaired parts increased to 90.76% and 12.68%, respectively.
In addition, the refinishing time increased to almost an hour more than the ICE cars, which increased the acquisition costs. New-to-market models are also starting to enter US collision repair facilities for the first time.
“EV sales are set to break records in 2022 and the combination of high gas prices, government incentives and increased vehicle production is helping to drive consumer demand,” said Ryan Mandell, director of performance at Mitchell claim. “With more EVs on the road, naturally there will be more EV collision claims. That puts a strain on auto insurers, who must balance the expectations of policyholders with higher -on-average vehicle repair costs and cycle time.This also puts pressure on collision repairers tasked with properly and safely restoring these vehicles to OEM standards.
“The number of cases will increase, so the management of batteries is an important point,” Christoph Lauterwasser, managing director of the Allianz Center for Technology, told Reuters in March.
According to the International Energy Agency (IEA), global EV sales are expected to grow by 35% this year, reaching an estimated 14 million units by the end of 2023. If these projections are true, the market share of EVs in the total vehicle market should rise from approximately 4% in 2020 to 14% in 2022 and 18% in 2023.
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