Top EV claims trends from 2025 second quarter

August 27, 2025 3:18 PM

di-tesla-stock-062019 — The steering wheel of a Tesla Inc. Model S P100D electric vehicle is seen at the EV Trend Korea exhibition in Seoul, South Korea on April 12, 2018. Photographer: SeongJoon Cho/Bloomberg

Electric vehicle (EV) sales surpassed 17 million globally in 2024, according to the International Energy Agency (IEA), and EVs are on track to exceed 40% of the market share by 2023. Global sales are expected to reach 20 million this year, which would account for more than a quarter of all global car sales.

Here are some of the top trends experts from Mitchell and Allianz are seeing from Q2 2025.

Battery electric vehicles (BEVs) see first-ever claim decline

Claims frequency for battery electric vehicles (BEVs) dropped for the first time in the United States, according to Mitchell's Plugged-In: EV Collision Insights report–a decrease that aligns with EV sales. Mild hybrid electric vehicles (MHEVs), however, saw an increase in market sales and in claims frequency.

"We're experiencing a significant shift in the electric vehicle landscape as the number of BEV claims in the U.S. dropped for the first time last quarter by 7%," said Ryan Mandell, Mitchell's vice president of strategy and market intelligence, in the report's press release. "This decline coincides with a 6% year-over-year reduction in new BEV purchases despite strong sales in early 2025. Meanwhile, claims for MHEVs continue to rise, reaching approximately 5% in the U.S. and 4% in Canada. That is a jump of 2% and 9% respectively over the previous quarter and 21% and 29% over the previous year."

Traditional North American automakers gain momentum

The U.S.'s largest automaker, General Motors, doubled its BEV sales by the end of the second quarter, emerging as a challenger to Tesla's market share, according to Mitchell. The report notes that Canadian traditional automakers like Hyundai, Kia, Toyota, Ford and Chevrolet are "positioned to capture most of the remaining BEV market share in Canada as Tesla has plummeted 16% to eighth place among likely shoppers."

BEV repair costs remain high

Mitchell's data reveals that the average severity for repairable BEVs in the U.S. was $5,903, followed by plug-in hybrids at $5,254 and MHEVs at $4,788 in the second quarter. Traditional internal combustion engine (ICE) vehicles saw an average of $4,938.

In Canada, the Q2 average was $6,633 for BEVs,$5,254 for plug-in hybrids, $4,788 for MHEVs and $4,938 for ICE vehicles.

Charging poses the highest risk phase for EVs

According to Allianz's "Fully charged: plugged in to the risks of the EV revolution," EV charging infrastructure is one of the most pressing matters when it comes to EV risk assessment.

"The riskiest moment in an EV's life concerning battery risk isn't driving – it's charging," says Rafael Rioboo, regional head of risk consulting for Allianz Commercial's Iberia region.

EV fires are severe and challenging to control with traditional methods, according to Rioboo. While EV fires are rare, estimates show that 15% to 30% of those that occur are linked to charging. In May 2025, for example, four vehicles in Mountain View, California, caught fire as an EV was charging. The total damages amounted to an estimated $275,000.

Another issue is that a strained EV can overheat, leading to damage to the vehicle's battery system and potentially trigger thermal runaway.

"Thermal runaway doesn't wait for you to act – it ignites, escalates and overwhelms," says Rioboo. "It can lead to fires, explosions and the release of heavy metals and toxic chemicals like carbon monoxide and hydrogen cyanide, posing serious risks to people, property and emergency responders.

Regulatory lag in EV charging

Ralph Schweda, senior risk consultant at Allianz Commercial, says that, for engineers, regulation of EV charging still lags in deployment, though there is overall improvement.

"At the beginning, it was the Wild West when it came to installing EV chargers. Now we are finally laying down the ground rules," says Schweda in the Allianz article.

Schweda notes that an improperly installed or grounded charger can be an ignition point and liability. When EVs burn, the damage can be severe.

"Cyber threats, vandalism, salt corrosion – EV stations are more than just plugs; they're risk magnets, so caution needs to be exercised in their installation," says Schweda.