Mitchell released its EV collision insights report for Q1 2025. This edition analyzes how new U.S. tariffs influence battery electric vehicle (BEV) sales and consumer adoption. The report also explains how these vehicles face disadvantages compared to internal combustion engine (ICE) vehicles due to import taxes.

“Rapid shifts in trade policy are reshaping the automotive landscape. Tariffs affect not only the cost of components but also the dynamics of assembly, supply chain transparency and even pricing strategies,” said Ryan Mandell, Mitchell’s director of claims performance. “While these challenges impact all automakers doing business in the U.S., they are more pronounced for manufacturers of BEVs. Insurers will need to collaborate closely with suppliers and collision repair partners to navigate tariff complexities and prepare for future uncertainty.”

Before automakers faced new tariffs, BEV sales remained strong in Q1. BEVs accounted for 9% of new vehicle sales in the U.S. and 10% in Canada. With more BEVs on the road after a second consecutive year of record sales, the frequency of collision claims increased to 3.12% in the U.S. and 4.48% in Canada.

EV Collision Insights Report Highlights Severity and Parts Usage

• Claims severity: BEVs continue to show the highest average repair costs compared to plug-in hybrids, mild hybrids, and ICE vehicles. In Q1, average severity for repairable BEVs reached $5,927 in the U.S. and $7,026 in Canada, decreasing 10% and 7% from Q4 2024.
• Total loss frequency: Nearly 11% of collision-damaged BEVs were declared total losses, down 1% from the previous quarter. This figure matches the total loss rate for new ICE vehicles, which share similar complexity and repair costs. It also stands 12% lower than the rate for all ICE vehicles combined.
• Parts utilization: Repair shops used OEM parts more often for BEVs. In Q1 2025, OEM parts made up 88% of repairable BEV estimate dollars, compared to 64% for ICE vehicles.
• Regional differences: British Columbia and Quebec reported the highest share of BEV repair claims in North America. BEVs accounted for roughly 8% of all repairable vehicle claims in both provinces, which also lead in BEV adoption per capita.

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