Mild hybrid electric vehicle collision claims reached an all-time high in North America during the first quarter of 2026, while battery electric vehicle claims held steady, according to Mitchell's Q1 2026 Plugged-In: EV Collision Insights report, released May 14.
Hybrid vehicles, which require different collision repair procedures and tooling than both conventional gas vehicles and full-battery electrics, now represent a larger share of the vehicles hitting shop floors than ever before.
Mitchell reported that repairable collision claims involving mild hybrid electric vehicles, or MHEVs, climbed to 5.69% of all repairable claims in the U.S. and 5.28% in Canada during Q1 2026. Those figures represent year-over-year increases of 25% and 33%, respectively, according to the PR Newswire press release.
At the same time, the share of repairable claims for battery electric vehicles held at 3.33% in the U.S., unchanged from the fourth quarter of 2025, and at 4.94% in Canada, according to the report.
"Electrification isn't slowing, it's evolving," said Ryan Mandell, Mitchell's vice president of strategy and market intelligence, in the press release. "Even as BEV sales soften, the number of hybrids on the road is growing, and that is clearly reflected in the rise of hybrid collision claims. For insurers, this affects the types of vehicles and risks they must manage. For repairers, it adds complexity by requiring additional tooling, labor operations, and training to ensure a proper and safe repair."
BEV Sales Soften as Hybrid Market Grows
The plateau in BEV claims corresponds with a pullback in new BEV purchases. Several automakers scaled back BEV production following import tariff increases and changes to federal tax incentive programs in both the U.S. and Canada, according to the report. Although new BEV sales grew modestly quarter over quarter in Q1, they remained 28% lower year over year, according to the Mitchell report.
Despite that near-term slowdown, the report projects BEVs will reach approximately 29% of new vehicle sales and just over 10% of vehicles in operation by 2035.
On the hybrid side, the report notes that MHEVs offer consumers a balance of efficiency, affordability, and usability, while some automakers view hybrids as a lower-risk pathway to meeting emissions and fuel economy regulations using existing manufacturing platforms.
Rising fuel costs and geopolitical instability in the Middle East have also contributed to consumer interest in electrified vehicles, primarily hybrids, according to the report.
The Q1 MHEV data continues a trend documented in prior Mitchell reports. In Q2 2025, mild hybrid collision claims rose 21% year over year in the U.S., reaching 5% of repairable claims. The full-year 2025 data, released in February, showed MHEV claims up 20% in the U.S. and 29% in Canada. The Q1 2026 figures mark the highest MHEV claim share Mitchell has recorded.
Earlier data on consumer purchasing trends pointed toward this outcome. A December 2025 CarGurus analysis found hybrid vehicle sales surged 33% in 2025 as affordability pressures led buyers toward electrified alternatives to full BEVs, with Toyota models dominating both new and used hybrid demand.
Repair Costs Remain Highest for BEVs
Average repair severity declined across all powertrain types in Q1, but BEVs continued to carry the highest per-claim costs. According to the Mitchell report, Q1 U.S. average repairable severity was $6,042 for BEVs, compared with $5,352 for plug-in hybrid electric vehicles, $4,993 for MHEVs, and $4,902 for gasoline-powered vehicles.
In Canada, severity followed a similar pattern, with BEVs at $7,185 Canadian, PHEVs at $6,490 Canadian, MHEVs at $6,370 Canadian and internal combustion engine vehicles at $5,605 Canadian. Quarter-over-quarter severity declined approximately 9% in the U.S. and 5% in Canada across all powertrains.
The report notes that BEVs continue to generate the highest claims severity due to their advanced technology and complex, interconnected electronic systems.
Geographic concentration of BEV claims remained consistent with prior quarters. The North American regions with the highest share of repairable BEV claims were British Columbia, Quebec and California, according to the report.
Canada: BEV Recovery Begins After Subsidy Disruption
In Canada, new BEV sales declined sharply early in 2026 following federal subsidy cuts, then began to recover in March with the reintroduction of government incentives.
The Mitchell report notes that the reinstated incentives favor BEVs and PHEVs priced under $50,000 Canadian and are designed to increase sales of domestically produced models. The report also identifies the anticipated entry of BYD into the Canadian market as a factor intensifying global competition.
