Electric Vehicle Collision Repair Costs Remain High

The repair costs associated with electric vehicles (EVs) are higher than their gas-powered counterparts for several reasons. EVs typically employ advanced technology and complex electrical systems, necessitating highly skilled technicians for repair work. There currently needs to be more skilled auto repair workers for electric vehicles, both on the mechanical and body shop sides, due to the auto repair industry struggling to keep up with the incredibly fast-moving electric vehicle revolution. Many EV components are expensive to replace. Because EVs are still less common on the roads than internal combustion engine (ICE) vehicles, there can be difficulty finding parts and longer waits for parts, translating to higher costs during repair.

Tesla repairs its vehicles with its own body shops

Tesla, a leader in the EV market, has made strides to address these issues by establishing its network of body shops. These Tesla-operated facilities are thoroughly trained in the specific repair needs of Tesla vehicles, leading to a more efficient repair process. This ensures that the repairs are conducted to Tesla’s exacting standards. Tesla has worked to alleviate the cost of specific components. Tesla’s commitment to providing convenient, cost-effective repair services underlines its dedication to the customer experience. However, there have been many complaints from Tesla owners about long wait times and other issues.

Mitchell’s report on EV collision insights offers valuable information

Mitchell’s report, “Plugged-In: EV Collision Insights Q2 2023,” released in August 2023, provides an in-depth analysis of the current state of electric vehicle collision repair. According to the report, “Electric vehicle (EV) repairable claims frequency rose to 1.49% in the US and 2.64% in Canada in Q2 2023, which is an increase of 0.36% and 0.23% respectively over Q1.” The report reveals a steady increase in EV-related collision repairs, correlating with EVs’ growing popularity and adoption. It further highlights the complexity of these repairs due to sophisticated technology and unique parts, echoing the points previously made about the higher repair costs associated with EVs. It also brings up another critical issue, “the relative lack of moving parts means that an EV’s critical powertrain is less likely to be compromised during an accident.” EVs have much fewer moving parts to repair than ICE vehicles, one of the most important reasons they are a more economically viable alternative than ICE vehicles.

The report also examines Tesla’s efforts to mitigate these issues. It praises Tesla’s in-house network of body shops for efficient repair processes and lauds the company’s initiative to offer battery repairs, reducing cost and environmental impact. Mitchell’s findings underscore the necessity for the auto repair industry to adapt to the increasing presence of EVs on our roads, ensuring that high-quality repair services remain accessible and affordable for all EV owners. About costs, the report confirmed that EVs continue to be more expensive for body repairs than their ICE counterparts. “As it relates to average severity for repairable vehicles, EV costs continue to exceed those of ICE automobiles. For Q2 2023, severity costs were higher for EVs by $963 in the US and $1,328 in Canada,” said the report.  The author of the report, Ryan Mandell, Director, Performance Consulting at Mitchell International, is a well-respected and well-known expert in the field. EVinfo.net was honored to speak with Mandell, who provided this quote:

“Part of the repair cost is simply that EVs have a higher actual cash value (ACV) on average than the general ICE vehicle population which means a higher threshold to achieve a total loss. That being said, even when we compare 2020 and newer luxury vehicles (the closest comparison in terms of complexity and ACV), we still find that EVs are about 8% more costly to repair. Labor typically accounts for a larger share of the overall repair cost with EVs, in large part due to the required procedures for managing and protecting the high voltage battery (and those working on the vehicle) during the course of repairs.”

Ryan Mandell, Director, Performance Consulting at Mitchell International

Mitchell, an Enlyte company, a leader in collision repair

Mitchell, an Enlyte company, formerly known simply as Mitchell, is a leading provider of technology, connectivity, and information solutions to the Property & Casualty (P&C) Claims and Collision Repair industries. With its deep-rooted history and commitment to innovation, Mitchell Enlyte is at the forefront of offering comprehensive and integrated solutions that enhance productivity, profitability, and customer satisfaction. The company’s services include claims management solutions, repair shop solutions, medical claims solutions, and pharmacy solutions. Mitchell Enlyte’s unique positioning, industry expertise, and commitment to excellence have made it a trusted partner for many insurance companies, repair facilities, and healthcare providers across the globe. Its recent research contributions, such as the “Plugged-In: EV Collision Insights Q2 2023”, demonstrate its dedication to staying abreast of industry trends and providing insightful analysis, helping its clients navigate the ever-evolving landscape of the auto repair and insurance sectors.

Collision repair costs for electric vehicles predicted to drop

EVinfo.net believes the current higher costs for collision repair on electric vehicles will drop to levels lower than ICE vehicles, as EV adoption continues to grow. The current lack of trained personnel to complete repairs will be addressed, as more collision repair technicians are trained to work on EVs. Body shops will become more accustomed to repairing EVs as more electric vehicles enter the market. The current higher costs of collision repair for EVs are simply one of the many growing pains of the EV market, as it is experiencing high-speed growth. More aftermarket parts will become available as more companies enter the EV market or expand their current offerings.