EV Collision Claims Rebound as Expiring U.S. Government Tax Incentives Drive Record Sales

Claims frequency for battery electric vehicles rose to 3.21% in the U.S., marking an all-time high and an increase of 4.2% year-over-year, a new report shows.

New battery electric vehicle purchases surged 36% compared with the third quarter of 2024 as consumers capitalized on the $7,500 tax credit that expired on September 30, with several large automakers including GM, Ford, Kia and Hyundai reporting record-breaking BEV sales in third quarter, according to Mitchell’s latest Plugged-In: EV Collision Insights report.

The 2025 third quarter edition highlights a dramatic reversal in U.S. collision claims frequency for repairable BEVs, which dropped for the first time in the second quarter before rebounding last quarter to an all-time high of 3.21% just as expiring government tax incentives prompted record-breaking sales. BEV claims also jumped to 4.91% in Canada, a year-over-year increase of 24%, according to the report.

“We’re witnessing the immediate impact of policy changes on BEV adoption and collision claim trends in both the U.S. and Canada,” stated Ryan Mandell, Mitchell’s vice president of strategy and market intelligence. “With recent political and trade developments producing uncertainty, many automakers are now diversifying their portfolios to accommodate more hybrid and gasoline-powered alternatives as they reassess their BEV investments and growth targets.”

Other findings in the Q3 Plugged-In: EV Collision Insights report include:

• Average severity for repairable BEVs dropped to $6,185 in the U.S. and $6,954 (CAD) in Canada, a decrease of 2.4% in the U.S. and 1.5% in Canada from the second quarter.
• Regions with the most BEVs per capita also continued to have the highest number of BEV collision claims.
• Total loss market values averaged $29,827 for BEVs, a decrease of roughly 1% from the second quarter compared with $13,979 for ICE automobiles.
• OEM parts are most frequently used in BEV collision repairs. An estimated 85% of the parts dollars for repairable vehicles in Q3 were designated for OEM parts—a slight increase over the previous quarter—versus 62% for ICE alternatives.