Mitchell, a technology and information provider for the Property & Casualty claims and Collision Repair industries, released its Q1 2024 trends report: Plugged-In: EV Collision Insights.
This quarter’s report provides an update on EV total loss frequency, which has risen since late last year as the price of used EVs has fallen. In the U.S. and Canada, EV total loss rates were 9.93% and 7.48% respectively—an increase of approximately 8% from Q4 2023 and 30% from Q3 2023 in both regions. Despite the dramatic rise, EV total loss frequency remains in line with 2021 and newer ICE alternatives, which ended the quarter with a rate of 9.51% in the U.S. and 7.44% in Canada.
“Slowing new sales, manufacturer price reductions and changing consumer sentiment are impacting the value of used EVs,” explained Ryan Mandell, Mitchell’s director of claims performance. “As a result, the total loss frequency for collision-damaged EVs is increasing. However, it is also increasing for new gasoline-powered vehicles, which are comparable to EVs in terms of their complexity and cost to repair.”
Other notable auto claim differences between EVs and ICE automobiles last quarter included: