EV Insurance Claims Severity Gap Has Narrowed
New report shows that repair cost differences between electric and traditional vehicles are shrinking in North America.
Updated on Sept. 29, 2026 in Electric Vehicles
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A recent Mitchell report reveals that the claims severity gap between electric vehicles and internal combustion cars fell to $1,234 in Canada and $729 in the United States. This narrowing trend is driven by higher depreciation rates for electric models and a rise in minor damage repairs handled as out-of-pocket expenses.
Why it matters
The shrinking cost gap highlights the shifting economics of EV ownership as used models become more affordable and insurance claims processing evolves. These figures provide a clearer picture of long-term repair sustainability for consumers and insurers alike.
In Q2 2026, mild hybrid claims reached 5.52% in Canada, narrowly outpacing the 5.42% recorded for battery electric vehicles. Additionally, Canadian demand for electric vehicles grew 20.8% during the first four months of the year.
The players
Mitchell
Mitchell is a provider of technology, connectivity, and information solutions to the property and casualty insurance and collision repair industries.
The details
Rising availability of affordable used electric vehicles has helped stabilize repair costs relative to gas-powered counterparts. While Tesla parts pricing dipped 3% in Canada, costs in the United States have remained flat.
Timeline
First four months of 2026: EV demand in Canada rose by 20.8%.
Q2 2026: Mild hybrid and battery electric vehicle claims were recorded.
September 2026: The report was published.
Roadmap
The auto industry is undergoing a structural realignment as electric vehicle repair metrics begin to mirror traditional internal combustion engine trends. This shift indicates that as EV market penetration deepens, the secondary market and repair infrastructure are maturing to meet broader consumer demand.
Drivers may find that the total cost of ownership for electric vehicles is becoming more predictable as the claims severity gap tightens. Prospective buyers should note that 34% of Canadian shoppers are currently considering battery electric vehicles, suggesting increased supply and potentially more competitive repair options.
The takeaway
As the EV market matures, the narrowing cost gap in repair claims suggests that ownership expenses are aligning more closely with traditional vehicle standards. Consumers should monitor regional parts inflation and trade policy shifts, as these factors may influence future repair costs and availability.
Further reading
Learn more about the latest developments in Electric Vehicles.
More information
Read the complete Mitchell Plugged-In EV Collision Insights report for detailed market analysis.
Live Poll
Do you feel that owning an electric vehicle is becoming as affordable as owning a traditional car?
