Electric Vehicle Collision Claims Costs Have Narrowed
The gap in repair costs between EVs and gas-powered cars shrank as used models became more affordable.
Updated on Sept. 29, 2026 in Electric Vehicles
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A new report shows that the disparity in collision claims severity between electric and internal combustion vehicles has narrowed to $1,234 in Canada and $729 in the United States. This trend coincides with a 20.8 percent increase in Canadian consumer demand for electric vehicles during early 2026.
Why it matters
The narrowing cost gap reflects the growing availability of affordable used electric vehicles, which helps balance insurance claim valuations. As EVs become more common, owners may find insurance costs stabilizing relative to traditional vehicles despite ongoing parts-pricing pressures.
The claims severity gap narrowed to $1,234 in Canada and $729 in the U.S. during the first half of 2026. While demand in Canada rose by 20.8 percent, Tesla parts prices in that market saw a 3 percent decline compared to flat pricing in the United States.
The players
Mitchell
An industry data and software provider that tracks automotive collision repair metrics and parts pricing trends.
The details
The cost gap reduction is driven by the depreciation of battery electric vehicles, which lowers overall claim values. Additionally, more drivers are opting to pay for minor vehicle damage out-of-pocket rather than filing insurance claims. Future costs face headwinds from global trade issues and anticipated parts inflation that could affect all manufacturers.
Timeline
During the first four months of 2026, electric vehicle demand in Canada rose by 20.8 percent.
Mild hybrid vehicle claims in Canada reached 5.52 percent in Q2 2026.
Battery electric vehicle claims in Canada reached 5.42 percent in Q2 2026.
The Mitchell report regarding collision claims was published in September 2026.
The Home Front
This shift in collision costs marks a departure from the historical trend of significantly higher repair expenses for electric vehicles. It mirrors a broader market stabilization as electric vehicle ownership becomes more accessible and depreciation curves normalize for early adopters.
Review your current auto insurance policy to see how repair costs for your specific vehicle type influence your premiums. If you are considering an electric vehicle, research the local availability of certified collision centers to ensure support for newer models.
The takeaway
The shrinking cost gap suggests that electric vehicles are reaching a maturity phase in the insurance market that benefits household budgets. Keep a copy of your vehicle's specific repair documentation on file, as this can help provide clarity when discussing potential repair options with adjusters.
Further reading
Learn more about the ownership experience in our guide to Electric Vehicles.
More information
Review the full findings in the Mitchell Plugged-In EV Collision Insights report.
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Do you feel that owning an electric vehicle is becoming as affordable as owning a traditional car?
