WESTLAKE, Texas--(BUSINESS WIRE)--Solera Holdings, LLC, the global leader in vehicle lifecycle management, today announced groundbreaking global research looking at repair cost trends of electric vehicles (EVs) in comparison to internal combustion engine (ICE) repair costs.
The comparative study considered aggregate international analytics across 20 countries; Solera’s vast global claims database aggregates and normalizes raw claims data to provide insights into important performance metrics such as claim cost behaviors and replaced part composition. Approximately 92,000 raw data points (repair estimates) were examined, between January 2021 through August 2023, comparing findings of a Hyundai Kona EV with its ICE model counterpart.
“Recognized by the industry for its exceptional innovations, Hyundai offers consumers both ICE and EV options with some of its models. The Hyundai Kona, which received the 2023 Subcompact SUV, Editor's Choice Awards, Car and Driver, U.S., is one such option making it an ideal example for Solera’s study,” explained Bill Brower, Solera’s Vice President Global Industry Relations and North America Claims Sales.
Highlights of Solera’s EV vs. ICE Comparative Repair Cost Study Include:
- Overall, EV repair costs are 29% higher than ICE repair costs, globally, on average.
EV parts costs are 48% higher, on average, per estimate. Parts included high-voltage battery, battery-control unit, cabling, battery box, and system battery charger.
- Representing 24% of total parts cost spend (normalized), EV battery “system” repair costs are the highest part cost item(s) ($8.89M) compared with headlights ($2.88M).
- Driver airbag “systems” were replaced 8% more frequently on EVs.
- Rear bumper absorbers were replaced 1,390% more frequently on EVs.
- Rear bumper reinforcements were replaced 14% more frequently on EVs.
“There’s been a lot of industry speculation as to `why’ EV repair costs are more expensive than ICE repairs. The findings from Solera’s landmark research offers a first-ever look at key elements shaping EV vs. ICE repair costs with a goal of helping the collision repair industry to better understand some of the trends and anomalies that can be optimized to enhance their business,” explained John Felahi, Solera’s Head of Global Data Science, Analytics and Data Business.
Added Clint Ory, Solera Sr. Sales Engineer, North American Sales; “We know there were approximately 3.1 times more Kona ICE repairs performed in this time period as compared with EV repairs, allowing us to normalize the number of parts repaired/replaced to ensure a balanced data set.”
“If there’s a bright spot to EV repairs, it’s the significantly lower collision and property damage liability claim frequencies compared with their conventional counterparts (adjusted for mileage),” explained Matt Moore, Senior Vice President, Highway Loss Data Institute (HLDI).
Citing an April 2023 HLDI Bulletin, Moore stated, “Collision and property damage claim severity for electric vehicles is higher than their conventional counterparts, but only the property damage increase is significant. Electric vehicles were also associated with lower claim frequencies under all applicable coverages.”
“The heavier weight of EVs may explain the higher frequency of airbag system repairs (8% more),” Moore said. “From a physics perspective, more vehicle weight translates to more energy in crashes, more energy translates to more damage and likely a higher probability of airbag deployment.”
Added Brower, “As the transition to EVs continues to accelerate, Solera’s extraordinary knowledge base remains a critical beacon for guiding business decisions, and we’re pleased these findings can help provide important insights to lead the industry forward.”
About Solera: A leading global provider of integrated vehicle lifecycle software-as-a-service, data, and services, Solera offers a “one-stop shop” solution for streamlining operations, data-driven analytics, and enhanced customer engagement. With its impressive roster of leading brands in the vehicle lifecycle ecosystem, Solera serves over 300,000 global customers and partners in 100+ countries.
About HLDI: The HLDI supports the mission of the Insurance Institute for Highway Safety through scientific studies of insurance data representing the human and economic losses resulting from the ownership and operation of different types of vehicles and by publishing insurance loss results by make and model.