Battery electric vehicle (BEV) collision claims in the U.S. hit an all-time high in the third quarter of 2025, according to new data from Mitchell, even as the broader EV market faces turbulence following the expiration of federal tax incentives.
The Q3 2025 edition of Mitchell’s Plugged-In: EV Collision Insights report shows repairable BEV claims frequency reached 3.21%, reversing a brief Q2 decline and setting a new record. In Canada, BEV claims jumped to 4.91%, a 24% year-over-year increase.
The spike in claims corresponds directly to record EV sales as buyers rushed to take advantage of the $7,500 federal tax credit before it expired Sept. 30. Cox Automotive reported 438,487 EVs sold in Q3, up nearly 30% year over year, accounting for a record 10.5% of total vehicle sales.
“We’re witnessing the immediate impact of policy changes on BEV adoption and collision claim trends in both the U.S. and Canada,” said Ryan Mandell, Mitchell’s vice president of strategy and market intelligence.
Severity and parts challenges
Average claim severity for repairable BEVs decreased slightly in Q3, dropping to $6,185 in the U.S. and $6,954 (CAD) in Canada. However, BEV severity remains significantly higher than for internal combustion engine vehicles, which continue to have the lowest average severity among all propulsion types.
The parts picture underscores a persistent challenge for shops working on EVs: OEM parts accounted for 85% of all BEV repair parts dollars in Q3, a slight increase from the previous quarter. By comparison, ICE vehicles see OEM parts represent just 62% of repair parts dollars.
Without a robust aftermarket parts supply for EVs, shops face longer lead times and higher costs when sourcing components. This dynamic can extend cycle times and squeeze margins on EV repairs.
Total loss values for BEVs averaged $29,827 in Q3, roughly 1% lower than in Q2 but still more than double the $13,979 average for ICE vehicles. Total loss frequency industrywide reached 22.6% of all claims through April 2025, according to CCC Intelligent Solutions.
Regional concentration
Shops in high-EV-adoption markets are feeling the shift most acutely. British Columbia led all regions with 8.74% of repairable claims involving BEVs, followed by Quebec at 8.37% and California at 6.5%.
For shops in these markets, EV repairs already represent a meaningful share of workload. In discussing Q2's data, Mandell noted that shops should consider local EV sales and vehicles in operation when deciding whether to pursue EV repair certifications.
Market uncertainty ahead
With the tax credit now expired, the pace of future EV claims growth is uncertain. November vehicle sales data shows EV demand cratered following the expiration, with Ford reporting a 60.8% drop in EV sales and Hyundai’s IONIQ 5 falling 59% compared to November 2024.
Ford’s announcement Monday of a $19.5 billion write-down and the cancellation of several EV models, including the F-150 Lightning in its current form, signals a broader industry shift. The automaker is pivoting to hybrids and extended-range electric vehicles while scaling back pure EV investments.
Mandell noted that many automakers are diversifying their portfolios to accommodate more hybrid and gasoline-powered alternatives as they reassess their BEV investments. This gradual, geographically uneven transition, he said, will require collision repairers to adjust workforce training to support a wider mix of drivetrains.
The full Q3 Plugged-In report is available for download at mitchell.com/plugged-in.
