How much BEV collision claims surged in Canada

Battery electric vehicle collision claims in Canada climbed sharply in the third quarter of 2025, reaching 4.91 per cent of all repairable vehicle claims, a 24 per cent increase year over year.

According to Mitchell’s latest Plugged-In: EV Collision Insights report, the rise coincides with record-breaking BEV sales driven by expiring government tax incentives, highlighting the immediate impact of policy changes on adoption and repair trends.

British Columbia and Quebec continued to lead the country in BEV collision frequency. Last quarter, 8.74 per cent of repairable claims in B.C. involved BEVs, while Quebec followed closely at 8.37 per cent. These figures reflect regional concentrations of electric vehicles and highlight the operational challenges facing insurers and repairers in high-adoption markets.

Average severity for repairable BEVs in Canada dropped slightly to $6,954, down 1.5 per cent from the previous quarter. Despite this decline, BEV repairs remain costlier than those for internal combustion engine (ICE) vehicles, which continue to post the lowest average severity.

The report also noted that BEV total loss market values averaged $29,827, more than double the $13,979 average for ICE automobiles.

Parts sourcing remains a critical issue. With limited availability of alternative parts for BEVs, original equipment manufacturer (OEM) components dominate repair estimates. In Q3, 85 per cent of parts dollars for BEV repairs were allocated to OEM parts, compared with 62 per cent for ICE vehicles—a gap that underscores the need for supply chain adaptation as electrification expands.

In the United States, BEV collision claims rebounded after a brief decline in Q2, climbing to an all-time high of 3.21 per cent in Q3. Average severity fell to $6,185, a 2.4 per cent decrease from the previous quarter, mirroring the trend seen in Canada. California ranked third overall for BEV claim frequency at 6.50 per cent, behind Canada’s leading provinces.

Mitchell says these developments signal a gradual but uneven transition toward widespread electrification, influenced by policy shifts and market uncertainty. “We’re witnessing the immediate impact of policy changes on BEV adoption and collision claim trends in both the U.S. and Canada,” the company said in a statement.

Image credit: Depositphotos.com