The cost of repairing vehicles after an incident is increasing.
These increased costs are linked to the new and improved technology in vehicles. A December 2023 study by the American Automobile Association (AAA) found that advanced driver assistance systems (ADAS) repairs represent 37.6 percent, on average, of the total cost of repairs in four common collision scenarios. For a minor rear collision repair, AAA estimates that ADAS accounts for 40.9 percent of the total cost of repairs, according to Bankrate.
Ken McConnell, owner of Austin’s Collision in Holly, said it’s impossible to give someone an estimate without first looking into the damage.
“The day the guy fixes his own car in his garage is almost gone,” he said. “It’s not a simple industry anymore.”
Vehicles have rear-end cameras, collision assist technology, adaptive cruise control, lane assist technology and more.
“Cars are very expensive nowadays but they’re better cars. They’re safer cars,” he said. “It’s more expensive to fix vehicles now…All that technology has to be working when we give it back to them.”
Austin’s Collision sometimes has to send damaged vehicles to the dealerships to have the technology repaired.
“People run into the back of cars, doesn’t look like much damage,” he said. However, in one case, the repair cost went from $4,000 to $8,000. It’s hard to say how much repairs cost until they look at the damage and finish the repairs.
McConnell said there aren’t necessarily more accidents in the winter compared to other seasons. They see fender-benders, damages to cars that went into ditches, deer-vehicle accidents and more. McConnell said there is a lot of plastic on cars now and repairs can easily cost thousands of dollars. Some repairs can cost up to $15,000.
A cracked windshield with collision avoidance technology can cost up to $1,500 because they have to reprogram the technology.
Some trucks have 360-vision technology so drivers can see around the entire vehicle. Because of this technology, seemingly small repairs, such as a broken mirror, can cost thousands of dollars.
“Cars are very technical now, very very technical,” he said.
McConnell said someone can spend $40,000 to $50,000 on a $100,000 truck before it’s considered totalled.
Collision avoidance systems are often built into the bumper of a car. If that’s damaged, it’s costly to fix. “That’s why you can’t say it’s going to be this amount of money to fix a bumper,” he said.
All this new technology, especially collision avoidance and warning systems, makes driving safer.
“Cars with interlock brakes and collision avoidance helps out a lot,” McConnell said, adding that all this new technology doesn’t stop accidents, but it decreases the severity of the accidents.
This new technology requires auto shop workers to be more knowledgeable about these advanced systems. Austin’s Collision employees learn about this new technology online and talk to other experts in the field.
McConnell said rising repair costs in turn cause insurance costs to increase.
“But all the technology making your car safer also makes it more expensive to repair — which could mean larger, more drawn-out insurance claims,” according to Bankrate. “Advanced safety tech makes driving safer, but it also makes cars more expensive to repair. With the cost of car insurance on the rise in the past few years, anything that adds to insurers’ losses could raise your premium.”
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.