The Californer - Primary Point of Impact Contributing to Differences in Claims Severity for Battery Electric and Internal Combustion Engine Vehicles

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SAN DIEGO, Nov. 13, 2024 ~ Mitchell, a leading technology and information provider for the Property & Casualty (P&C) claims and Collision Repair industries, has recently released their highly anticipated Q3 2024 Plugged-In: EV Collision Insights report. As a trusted source for data and analysis in the industry, Mitchell's report provides valuable insights into the differences between repairable battery electric vehicles (BEVs) and automobiles with an internal combustion engine (ICE).

According to the report, front-end impact collisions are the most common type of collision and also tend to be 40% more expensive than rear-end impacts. Mitchell's data shows that ICE vehicles have a higher frequency of front-end impact at 31.59%, compared to BEVs at 25.88%. On the other hand, BEVs are more likely to sustain rear-end damage at 35.98%, while ICE alternatives only have a rate of 27.57%.

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Ryan Mandell, Mitchell's director of claims performance, explains the significance of understanding these point-of-impact dynamics. "There's a direct correlation between the primary point of impact and claims severity," he says. "Even though overall severity remains higher for BEVs than for ICE vehicles, understanding these dynamics can help auto insurers better assess risk, manage claims and assist policyholders."

The Q3 2024 report also highlights other notable findings such as claims frequency and severity for repairable collision-damaged BEVs increasing by 47% in the U.S. and 26% in Canada compared to last year. In terms of average claims severity, BEVs had a cost of $5,560 in the U.S., followed by plug-in hybrids at $5,229, mild hybrids at $4,426, and ICE vehicles at $4,741. In Canada, BEVs had an average cost of $6,923 followed by plug-in hybrids at $6,171, mild hybrids at $6,366, and ICE vehicles at $5,615.

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As the price parity between BEVs and ICE vehicles continues to increase, there are also similarities in total loss outcomes. The average total loss market value for BEVs was $32,718 in the U.S. and $41,380 in Canada. For newer ICE vehicles that are comparable to BEVs in complexity and repair costs, the average total loss market value was $31,070 in the U.S. and $42,498 in Canada. Total loss frequency was also similar between the two types of vehicles with BEVs totaling at a rate of 9.9% in the U.S. and 10.11% in Canada, while newer ICE vehicles totaled at a rate of 9.98% in the U.S. and 11.74% in Canada.

Another important aspect of collision repair is cycle time from keys-to-keys, which refers to the time it takes for a vehicle to be repaired and returned to its owner. The report shows that on average, BEVs have a longer cycle time than ICE vehicles by 18% in the U.S. (19.5 days vs 16.5 days) and by 20% in Canada (17.2 days vs 14.3 days). This trend is also seen with mild and plug-in hybrids having longer cycle times than ICE vehicles.

To access the full report or previous issues, visit Mitchell's website or subscribe for future reports by completing a form on their website: www.mitchell.com/plugged-in.

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