Repairing electric vehicles (EVs), particularly Tesla models, tends to be more expensive after a collision when compared to internal-combustion vehicles, as highlighted in a recent study conducted by Mitchell International, a company providing technology solutions for the auto insurance and collision repair industries. The study, based on data from the second quarter of 2023, found that the average repair costs for EVs in the United States were $963 higher than those for comparable internal-combustion vehicles. In Canada, the difference was even more significant, with average repair costs for EVs being $1,328 higher than their internal-combustion counterparts.
When specifically focusing on Tesla vehicles, the cost differential was even more pronounced. In the United States, average collision repair costs for Teslas were $1,589 higher, and in Canada, the gap was $1,600 compared to traditional internal-combustion cars.
Several factors contribute to these higher repair costs for EVs, with one significant factor being the lower percentage of parts that can be repaired instead of requiring full replacement in EVs. According to the study, only 13.49% of parts on EVs were repairable, while the corresponding figure for internal-combustion vehicles was notably higher at 19.20%. When replacement was necessary, EV repairs were more likely to use original equipment manufacturer (OEM) parts, which can be costlier, compared to internal-combustion cars. In fact, the study found that EV repairs utilized an average of 90.75% OEM parts, whereas internal-combustion vehicle repairs had a lower average of 66.50% OEM parts.
Another factor contributing to higher repair costs for EVs was the extended time spent in the paint shop. The study revealed that EVs required an average of 8.51 hours in the paint shop, slightly more than the 8.02 hours needed for internal-combustion vehicles. Labor hours for paint refinishing are a substantial portion of the overall labor time for collision repair, which in turn significantly impacts the final bill.
Despite the higher repair costs, there was a notable advantage for EVs. The study indicated that EVs were less likely to be designated as non-drivable following collisions compared to internal-combustion vehicles. In the second quarter of 2023, around 10.31% of EVs involved in accidents were deemed non-drivable, while this figure stood at 13.11% for internal-combustion vehicles. Analysts attributed this difference to the simpler construction of EVs, which typically have fewer moving parts. This simplification means that the powertrain is less likely to be damaged in the event of a collision.
One area that wasn’t explicitly covered in the study but is of increasing concern in the collision repair industry is damage to EV battery packs. These packs represent a significant portion of an EV’s overall cost, sometimes accounting for up to 50% of the vehicle’s price. Significant damage to a battery pack could potentially render the entire vehicle uneconomical to repair, posing a unique challenge in EV collision repair.
Lastly, repairing both new EVs and internal-combustion vehicles often requires access to proprietary software and tools from manufacturers. The right-to-repair rules, which guarantee access to such software and tools, will play a crucial role in allowing independent repair shops to service vehicles effectively, regardless of their powertrain technology. This issue is gaining increasing attention as the automotive industry evolves towards greater electrification.