New cars are getting more expensive to fix, but don’t blame electric vehicles just yet

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The cost of new car repairs has steadily increased over the years. Increased complexity, new components, and a trend toward non-repairable energy-dissipating items mean that if you get caught out in a new car, you’ll likely have to pay more than ever to get it repaired.

As you might expect, the increase in average repair costs, a 36% increase since 2018, is having a ripple effect on insurance premiums. According to Mitchell, a company that compiles auto insurance and repair data, insurance rates have risen 17% in the past 12 months to May.

Modern digital architecture is so advanced that systems beyond the point of impact are disrupted, said Ryan Mandell, director of claims performance for Mitchell, speaking to The New York Times. Returning a car to its pre-loss condition is harder than at any point in history and will only get harder.

Also Read: Insurers Total Up Electric Vehicles for Minor Battery Problems, and It’s a Problem for Everyone

But despite various incidents highlighting the sometimes excessive repair estimates for electric vehicles, such as when a rear-mounted Rivian R1T received a repair estimate of $42,000, the data might tell a different story. In fact, while the average repair costs of an EV following an accident are indeed higher, they are not significantly higher compared to their ICE counterparts.

At first glance, Mitchell’s results show that electric vehicles cost an average of $2,400 more to repair than combustion vehicles after a crash. However, 75% of electric cars involved in crashes are classified as luxury models that cost between $40,000 and $110,000 when new. Repairing a more mainstream electric vehicle like those from Nissan costs just $800 more than its ICE equivalent, while vehicles in the premium segment have roughly the same repair cost.

Related: Tesla Owners’ $23,000 Rear-end Crash Bill Shows EV Repairs Can Be Incredibly High

There are also other factors at play. According to the data, 18% of combustion vehicles involved in accidents must be deregistered, while only 6% of electric vehicles are totaled. Meanwhile, according to evidence from the Highway Loss Data Institute, for models available in electric and ICE variants, such as the Hyundai Kona and Volvo XC40, electric vehicles cost only 2% more to repair.

Although a damaged battery will further increase repair costs, automakers are working on ways to minimize the financial burden of such a replacement. BMW’s electric vehicles enable the modular replacement of battery cells identified by crash sensors. GM is developing a similar method to allow dealers to replace individual battery modules, and the Ford Mustang Mach-E can swap all components into a new battery tray.

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The cost of new car repairs has steadily increased over the years. Increased complexity, new components, and a trend toward non-repairable energy-dissipating items mean that if you get caught out in a new car, you’ll likely have to pay more than ever to get it repaired. ”
[1]=> string(317) ”

As you might expect, the increase in average repair costs, a 36% increase since 2018, is having a ripple effect on insurance premiums. According to Mitchell, a company that compiles auto insurance and repair data, insurance rates have risen 17% in the past 12 months to May. ”
[2]=> string(439) ”

Modern digital architecture is so advanced that systems beyond the point of impact are disrupted, said Ryan Mandell, director of claims performance for Mitchell, speaking to The New York Times. Returning a car to its pre-loss condition is harder than at any point in history and will only get harder.”
[3]=> string(252) ”

Also Read: Insurers Total Up EVs For Minor Battery Issues, And It’s A Problem For Everyone”
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But despite various incidents highlighting the sometimes excessive repair estimates for electric vehicles, such as when a rear-mounted Rivian R1T received a repair estimate of $42,000, the data might tell a different story. In fact, while the average repair costs of an EV following an accident are indeed higher, they are not significantly higher compared to their ICE counterparts. ”
[5]=> string(479) ”

At first glance, Mitchell’s results show that electric vehicles cost an average of $2,400 more to repair than combustion vehicles after a crash. However, 75% of electric cars involved in crashes are classified as luxury models that cost between $40,000 and $110,000 when new. Repairing a more mainstream electric vehicle like those from Nissan costs just $800 more than its ICE equivalent, while vehicles in the premium segment have roughly the same repair cost. ”
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Related: Tesla Owners’ $23,000 Rear-end Crash Bill Shows EV Repairs Can Be Incredibly High”
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There are also other factors at play. According to the data, 18% of combustion vehicles involved in accidents must be deregistered, while only 6% of electric vehicles are totaled. Meanwhile, according to evidence from the Highway Loss Data Institute, for models available in electric and ICE variants, such as the Hyundai Kona and Volvo XC40, electric vehicles cost only 2% more to repair. ”
[8]=> string(455) ”

Although a damaged battery will further increase repair costs, automakers are working on ways to minimize the financial burden of such a replacement. BMW’s electric vehicles enable the modular replacement of battery cells identified by crash sensors. GM is developing a similar method to allow dealers to replace individual battery modules, and the Ford Mustang Mach-E can swap all components into a new battery tray. ”
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