Electric vehicle owners filed more claims for fixable collision damage in the third quarter of 2025 than ever before, according to a new report. Repairable EV claims accounted for 3.21% of all U.S. collision claims in Q3, collision repair information and tech company Mitchell reported.
Claims frequency for battery electric vehicles (BEVs) rose 4.2% year over year, according to the report. The volume of repairable claims also rose for “mild hybrids,” which use a small electric motor to supplement a gas-powered engine. Claims frequency for plug-in hybrids remained mostly flat during the same period, Mitchell reported.
The reported data represents car insurance claims for repairable damage and excludes claims that ended up in a total loss, said Matt Brannon, a data journalist with Insurify.
“Some drivers have the misconception that EVs get totaled more often than internal combustion vehicles,” Brannon said. “But the latest available data indicates their loss rates are about the same. For EVs, it’s 7.35%, and it’s 7.47% for comparable gas-powered vehicles.”
EV claims costs are still high but fell in Q3
Complex technology and a limited supply of aftermarket parts make BEV collision claims the most costly, according to Mitchell’s report. In the U.S., the Q3 average claim cost for a repairable gas-powered vehicle collision was around $5,000. For all BEVs, the average was $6,185 during the same quarter. That marks a year-over-year decrease of 2.4% for BEVs.
Average claim costs for mild hybrids and plug-in hybrids stayed fairly level compared to Q3 of 2024, according to the report.
EV sales spike played out as expected
BEV sales jumped 36% year-over-year in the third quarter of 2025, according to the report. Industry watchers had predicted an increase was likely as many Americans rushed to buy EVs before a $7,500 federal income tax credit for EV purchases expired on Sept. 30, 2025. Experts also warn that without the credit, EV sales could plummet.
Nearly half of EV owners (45%) said they wouldn’t have bought their EV without the tax credit, an Insurify driver survey revealed earlier this year. And 32% said they wouldn’t be able to buy an EV at full price today, now that the tax credit is gone.
What’s next: Repair costs and price tags impact sales
While EV makers continue to work toward making their vehicles more repairable, the high costs of repairs, combined with higher purchase costs, could undermine EV sales. Because an alternative parts industry doesn’t yet exist for BEVs, original equipment manufacturer (OEM) parts — which tend to cost more — accounted for about 85% of the parts costs for repairs in Q3.
“Long-term affordability should be a consideration when buying any vehicle,” Brannon said. “EV drivers and buyers need to think about repair costs and insurance premiums. More EVs are getting repaired under collision claims, which means EVs are costing insurers more to cover.”
“While collision claims are up, BEV sales are expected to drop significantly in the near term due to changing government policies,” Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, told PropertyCasualty 360. “That puts even more pressure on carriers to refine their underwriting and claims management practices to support a more diverse car parc that also now includes a growing number of hybrid alternatives.”
Typically, auto insurers pass on claims losses to consumers in the form of higher premiums. And EVs already cost 49% more to insure than gas-powered vehicles, according to Insurify data.
Related articles
