EV repair requests are projected to rise 14% in the US and 24% in Canada by 2025, with increased calibrations and OEM parts putting pressure on premiums, according to Mitchell.
Os accidents involving electric cars They advanced strongly in 2025 and raised the alarm for insurers. According to Mitchell, claims for EV collision repairs grew 14% in the United States and 24% in Canada, putting pressure on costs and timelines throughout the repair chain.
The move comes at the exact moment the EV market is slowing down. Estimates from Cox Automotive They indicate a drop of approximately 2% in new electric vehicle sales in the US, while S&P Global Mobility recorded a decline of 0,4% in new registrations, in a scenario of ending incentives and a migration of some consumers to hybrid vehicles.
Second Ryan MandellMitchell executive says denser electrical architectures, software-driven systems, and sensor-rich designs require diagnostics and… additional calibrations, increasing the complexity and repair time. By 2025, EVs will have, on average, 1,70 calibration per quotebefore 1,63 in hybrids and 1,54 in combustion engine vehicles.
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Calibration, in this context, is the process of readjusting and testing the vehicle’s sensors and electronic systems after a repair. This extra step helps ensure the safety and proper functioning of driver assistance systems, but adds labor, equipment, and bureaucracy to the workshop.
Repair cost, original parts, and impact on the workshop.
There is limited relief amidst the pressure. In the US, the average cost of EV repairs has fallen. 5% in 2025, approximately R $ 35 thousand for approximately R $ 33,5 thousand, according to Mitchell. In Canada, the reduction was of 2%While combustion engine vehicles and plug-in hybrids remained virtually stable in the US, mild hybrids They went up to something around R $ 26,5 thousand.
Another cost driver is the parts. In electric vehicles, 86% The cost of components is limited to original factory parts, and only… 13% are considered repairable. In combustion engine cars, the ratio is more favorable, with 62% original parts and 15% repairable, according to the report. Plugged-In, EV Collision Insights by Mitchell.
In practice, more original parts mean higher prices, lower availability, and longer lead times. Add to that the need for proprietary software, specific equipment, and trained technicians, and the cost of a claim tends to be much higher.
Accidents by engine type and where they most frequently occur.
Repairable accidents have also increased among electrified vehicles, in addition to purely electric ones. plug-in hybrids advanced 6% in the USA and 26% in Canada, while the mild hybrids rose 20% e 29%, respectively. In the case of mild hybrids, the jump is partially explained by an increase in 28% in US sales, expanding the customer base exposed to collisions.
Geographically, the highest concentration of EV repairs in North America appears in British Columbia with 8,48% of participation, followed by Quebec with 8,21%, and California with 6,58%According to Mitchell, these regions combine a larger electrified fleet and intensive use, which drives demand for specialized workshops.
Tesla loses ground and the most involved models
nor the Tesla escaped the market’s shift in sentiment. The brand’s market share in the US shrank from 48,7% all with 46,2% In 2025, as rivals gained ground with new releases and more aggressive pricing.
Among the models, Tesla still dominates the volume of repairable electric vehicle collisions in the United States. Model Y answer for 30,32% of EV claims, reflecting its role as a sales leader in the category.
Right behind, the Model 3 concentrates 27,01% of the occurrences in the American market. The high presence of both models in the fleet explains part of the statistical weight.
In Canada, the pattern is slightly reversed. Model 3 lead with 26,03% of repairable losses, followed closely by Model Y with 25,91%, according to Mitchell’s data for 2025.
For insurance companies, focusing on a few models makes pricing based on experience easier, but increases the risk of severity in case of increased parts costs, logistical bottlenecks, or software updates that require new calibrations.
Total loss and falling resale price.
When an accident becomes a total loss, the impact falls on the market value. In the US, the average price of EVs totaled has fallen. 6%, of about R $ 157,7 thousand for approximately R $ 147,5 thousand in 2025, according to Mitchell.
Combustion engine vehicles experienced milder declines, with averages close to R $ 72,7 thousand in the USA and R $ 62,8 thousand In Canada, while hybrids gained value in the US and lost ground in Canada. Analysts attribute the sharper declines in EVs to… accelerated devaluation…to the arrival of cheaper new models and to the shift in consumer sentiment towards mass electrification.
The combination of lower residual value and greater repair complexity can increase the frequency of total losses in moderate collisions. This directly affects actuarial costs, impacting deductibles, premiums, and acceptance policies.
For the secondary market and salvage auctions, lower prices may attract buyers, but the need for original parts and post-repair calibrations limits the margin for reconditioning.
Electric car insurance, pressure on premiums, and next steps.
With frequency of high claims rates and the severity Driven by increased calibrations and original parts, insurers are likely to revise prices and coverage for EVs. According to Mitchell, consolidated data from 2025 indicates significant and persistent pressure on insurance costs, an effect that could spread globally as the electrified fleet grows.
Reducing risk involves increasing repairability, stimulating supply chains with certified alternative parts, and training the workforce for diagnostics and calibrations. In the short term, however, the learning curve and component availability suggest further premiums. pressured, while Cox Automotive and S&P Global Mobility point to a more cautious market in transition.
Will EV insurance get more expensive, or will manufacturers and repair shops be able to quickly cut costs?Leave your comment and say who should absorb this cost during the transition: insurance companies, automakers, or consumers. The debate over parts prices, repairability, and depreciation promises to shake up the market in 2025.
