EV collision repair costs dip in Q3 2025 amid incentive rush
EV collision repair gets cheaper in Q3 2025, but still costly
EV collision repair costs dip in Q3 2025 amid incentive rush
Mitchell data shows EV collision repair costs fell 2.4% in Q3 2025 as buyers rushed to claim $7,500 incentives. EVs remain the priciest to fix due to OEM parts.
2025-12-12T22:49:19+03:00
2025-12-12T22:49:19+03:00
2025-12-12T22:49:19+03:00
Good news for anyone eyeing an electric: collision repair for EVs has become cheaper—at least in the United States. According to Mitchell, the average post-crash repair bill in the third quarter of 2025 fell by 2.4% compared with Q2, hitting its lowest level since late 2024.The dip came against a backdrop of surging demand. Buyers hurried to register EVs before the $7,500 federal incentive expired on September 30, and sales jumped 36% year over year. The share of repairable insurance claims involving EVs also rose, reaching a record 3.21%. The timing makes it clear that incentives still steer the market more than anything else.Even so, EVs remain the priciest to fix after a crash: average claim severity in the U.S. stood at $6,185. Plug-in hybrids came in at $5,529, mild hybrids at $4,983, and gasoline cars at $4,974. For anyone managing claims, those gaps are hard to ignore.The main culprit is parts. EV repairs rely more heavily on original equipment—about 85% of components—while cars with internal combustion engines use around 62%, and aftermarket options are still limited. EVs also have slightly fewer components that can be repaired rather than replaced. As long as alternative suppliers lag and repairability stays constrained, the cost gap will be slow to close.By model, the bulk of claims naturally mirrors the sales charts: Tesla’s Model Y and Model 3 lead, followed by the Ford Mustang Mach-E. In Canada, Model 3 and Model Y are also out in front, with the Hyundai Ioniq 5 and Kona EV appearing as well. No surprises here—volume leaders tend to bring more files across an insurer’s desk.
EV collision repair costs, Q3 2025, Mitchell report, $7,500 incentive, insurance claims, claim severity, OEM parts, aftermarket, Tesla Model Y, Model 3, Mustang Mach-E, Ioniq 5, Kona EV, US, Canada
2025
Michael Powers
news
EV collision repair gets cheaper in Q3 2025, but still costly
Mitchell data shows EV collision repair costs fell 2.4% in Q3 2025 as buyers rushed to claim $7,500 incentives. EVs remain the priciest to fix due to OEM parts.
Michael Powers, Editor
Good news for anyone eyeing an electric: collision repair for EVs has become cheaper—at least in the United States. According to Mitchell, the average post-crash repair bill in the third quarter of 2025 fell by 2.4% compared with Q2, hitting its lowest level since late 2024.
The dip came against a backdrop of surging demand. Buyers hurried to register EVs before the $7,500 federal incentive expired on September 30, and sales jumped 36% year over year. The share of repairable insurance claims involving EVs also rose, reaching a record 3.21%. The timing makes it clear that incentives still steer the market more than anything else.
Even so, EVs remain the priciest to fix after a crash: average claim severity in the U.S. stood at $6,185. Plug-in hybrids came in at $5,529, mild hybrids at $4,983, and gasoline cars at $4,974. For anyone managing claims, those gaps are hard to ignore.
The main culprit is parts. EV repairs rely more heavily on original equipment—about 85% of components—while cars with internal combustion engines use around 62%, and aftermarket options are still limited. EVs also have slightly fewer components that can be repaired rather than replaced. As long as alternative suppliers lag and repairability stays constrained, the cost gap will be slow to close.
By model, the bulk of claims naturally mirrors the sales charts: Tesla’s Model Y and Model 3 lead, followed by the Ford Mustang Mach-E. In Canada, Model 3 and Model Y are also out in front, with the Hyundai Ioniq 5 and Kona EV appearing as well. No surprises here—volume leaders tend to bring more files across an insurer’s desk.
