According to Mitchell’s Plugged-In: EV Collision Insights report (August 2025), the rise in BEVs is having a notable effect on repairable collision claims: battery electric vehicles (BEVs) accounted for 4.83% of all repairable collision claims in the second quarter of 2025 – an 8% increase from the previous quarter.
BEVs also saw a spike in repair costs in Q2 2025: BEVs had an average cost of $6,633 – higher than the average cost to repair PHEVs at $5,916 and MHEVs at $5,742.
Advanced technology comes at a price. EV repairs can be more expensive because of sophisticated technology, so even minor fender-benders may be costly. Advanced driver-assistance systems (ADAS) require recalibration after collisions, impacting your bottom line. Cameras and sensors need attention after an accident.
EVs have complex components that require specialized repairs such as high-voltage battery systems and sophisticated electronics that may require extensive inspection or replacement after minor collisions. All of these factors contribute to an already rising repair bill for EVs.
What This Means For Your Premium
Overall car insurance premiums are rising 4.45% for the average Ontario driver this year. The analysis uses a typical driver profile: a 35-year-old, married driver with no incidents/claims and continuous coverage.
In this pooled quote dataset, median premiums rose faster for the selected EVs than for the selected gas vehicles. The following comparison shows median premiums for EVs to gas-powered cars. Across the pooled models, the EV median increased 16.9%, compared with 1.4% for the gas-vehicle median. This is not a like-for-like model comparison.
For our analysis, we used the most common EVs quoted on MyChoice in 2026. This includes the Tesla Model 3, Tesla Model Y, Nissan LEAF, Ford Mustang Mach-E and the Chevrolet Bolt. Tesla accounted for the majority of EVs analyzed. For gas-powered cars, we analyzed the Honda Civic, Toyota Corolla, Mazda CX-5, Ford Escape, Honda Accord and the Chevrolet Equinox.
| Vehicle group | 2025 premium median | 2026 premium median | YoY change |
|---|---|---|---|
| All EVs pooled* | $2,016 | $2,357 | +16.9% |
| All gas vehicles pooled | $1,980 | $2,008 | +1.4% |
We’ve written about EV vs. gas-powered premiums in Are Electric Vehicles Actually More Expensive to Insure Than Gas Cars?, however, the spike in EV premiums this year is notable. Here’s why we think EVs are experiencing larger increases compared to gas-powered cars:
Possible Explanation: Tighter Underwriting And Risk Differentiation
One possible explanation is tighter underwriting and greater differentiation between EV models. Premiums have risen year over year in this dataset, but the data does not establish a single cause. Similar purchase prices do not necessarily produce similar premiums.
Factors such as make/model, battery size, availability of parts, etc., can influence premiums. Insurers may be taking all of this into consideration – resulting in larger premium increases.
Another Possible Factor: Rising EV Adoption
As EV ownership rises, insurers receive more EV claim experience. That may affect pricing over time, but the number of vehicles on the road alone does not prove that an individual EV will have a higher claim rate.
Write-Off Thresholds May Be Reached More Frequently
Higher repair costs for EVs mean that accidents that wouldn’t warrant a write-off for gas-powered cars may cross the threshold for EVs. See our article on EV write-offs: EV Write-Offs Are Rising as Repair Costs Climb and Prices Fall. Falling resale values may be contributing.
Decreases in resale values, due to market forces including reduced demand, price reductions by manufacturers, and changes to incentives, could be affecting insurers’ ability to decide if it’s more cost-effective to write-off or repair.