Canadian Underwriter

Repairs for hybrid vehicles cost more than repairs for non-hybrids

August 9, 2010   by Canadian Underwriter

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Claims costs are higher for hybrid cars and SUVs than for non-hybrids, according to Mitchell International.
In its Quarterly Feature of the Mitchell Industry Trends Report, Mitchell International says hybrids have higher collision claims frequencies and severity than non-hybrids.
Overall, hybrids have a 6.5% higher average claim severity than gas powered vehicles, Greg Horn writes.
The Honda Civic has a 6.9% higher severity than the gas-only version, while the Ford Escape hybrid generates a 9% higher average severity than the non-hybrid version.
One reason for the higher frequency could be that hybrids are used in longer commutes, Kim Hazelbaker, senior vice president of the Highway Data Loss Institute says in the report.
Additionally, mechanical labour charges for hybrids are higher, adding to the higher claim costs.
Furthermore, alternate parts use in hybrids is lower than for a non-hybrid vehicle, Horn adds.

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