EV Repair Costs Are Closing In on Gas Cars — and Canadian Insurers Have Noticed

The gap between what it costs to repair a battery-electric vehicle and a gasoline car after a collision in Canada has shrunk to the narrowest on record. Mitchell International's Q2 2026 Plugged-In: EV Collision Insights report puts the difference in average repairable severity at $1,234 in Canada — $6,645 for BEVs versus $5,411 for internal-combustion vehicles — as reported by Canadian Underwriter on August 27.

In the United States the gap is even tighter at US$729 ($5,684 versus $4,955). Mitchell, an Enlyte company, says that if the trend holds, it points to a combination of two forces: higher total-loss frequency for EVs, and an electric fleet that is simply maturing.

Why the gap is shrinking

"Historically, BEVs generate higher repair costs due, in part, to more complex, interconnected systems," the report notes. But Q2 data shows those premiums eroding across all model years. Ryan Mandell, Mitchell's vice-president of strategy and market intelligence, calls the shrinking premium an important development for insurers and collision repairers as the EV parc ages.

EVs now over 5% of Canadian collision claims

For the first time, battery-electric vehicles and mild hybrids each accounted for more than 5% of repairable claims in Canada — new records, rising 12% and 28% year-over-year respectively. New electric vehicle sales in Canada also jumped 21% in the first four months of 2026 compared with the same period of 2025.

By repairable claims frequency, the top North American BEV markets are British Columbia at 9.34% (up 0.68 points from Q1 2026), Quebec at 9.19% (up 0.59 points), and California at 7.02%. Two Canadian provinces lead the continent.

The tariff wildcard

The parity trend has a caveat: parts. BEVs rely more heavily on OEM replacement components than gas cars and typically have fewer parts repaired versus replaced. Mitchell flags ongoing CUSMA review and tariffs, plus Middle East conflict pressures on shipping and aluminum, as risks that could reintroduce cost variability into exactly the parts supply that EV repairs depend on.

For Canadian EV owners, the data is quietly good news: the collision-repair premium that helped push EV insurance premiums higher is narrowing, even as EVs become a normal part of the claims mix.

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