Why auto repairs have become so expensive
More technology and comfort, as well as a parade of new electric vehicles, have complicated work after accidents.
New cars and trucks are packed with sensors and technologies that protect and pamper drivers and passengers. But these features also increase the cost of repairs after an accident.
The average cost of repairing damaged cars has climbed 36% since 2018 and could exceed 5 $000 by the end of this year, according to Mitchell, a company that provides data and software to insurance companies and auto repair businesses. This sharp increase is the main reason for skyrocketing insurance premiums - up 17% in the 12 months to May.
New vehicles SUVs and pickup trucks, including a growing number of electric models, have become so complex and luxurious that seemingly simple repairs can cost a small fortune, auto experts said. Insurers are often responsible for a large portion of these costs, leading them to raise their rates.
Materials designed to wrinkle or distort in the event of a collision to protect pedestrians or passengers, for example, may be difficult or impossible to repair. Many bumpers need to be replaced after low-speed hits because the built-in safety sensors may no longer work properly after repairs. Other systems, even some that appear undamaged, need to be inspected or recalibrated.
"Modern digital architecture is so advanced that systems beyond the point of impact are disrupted," said Ryan Mandell, Claims Performance Manager for Mitchell. "Returning a car to its pre-loss condition is more difficult than at any point in history, and will only get more difficult."
Industry experts have focused particularly on the cost of repairing electric cars and trucks, which are not built like gasoline cars and have different parts.Plus, many mechanics are not trained to work on them.In recent months, news reports and stories shared on social media of astronomical repair bills for cars and electric trucks have caught the eye of car enthusiasts.
Take the case of Chris Apfelstadt and his Rivian R1T pickup truck, which was rammed by a Lexus in February at a red light in Columbus, Ohio while driving with his son in the back seat.
The damage was initially deemed relatively minor and the other driver's insurer offered him $1,600. The actual cost to repair the bumper at a company certified to repair Rivian vehicles - one of only three in Ohio - was $42,000, or about half the selling price of the truck.
>"I expected it to be expensive," said Mr. Apfelstadt, owner of a lighting company, "but still it was a number shocking".
One of the main reasons is that the accident damaged a sleek panel that extends from the rear of the truck to the front roof pillars. Its repair and painting triggered a cascade of costly work, including the removal of interior ceiling material, known as the headliner, and the front windshield.
Part of the cost probably also had to do with Rivian's small size and youth. Like other auto start-ups, the company, which is based in Irvine, Calif., and delivered its first vehicles to customers in 2021, does not sell through franchise dealerships and has had to build a repair network independent from the ground up.
Ford Motor has 2,800 North American dealerships equipped to repair its electric vehicles, as well as an extensive network of independent workshops and suppliers of spare parts. R...
More technology and comfort, as well as a parade of new electric vehicles, have complicated work after accidents.
New cars and trucks are packed with sensors and technologies that protect and pamper drivers and passengers. But these features also increase the cost of repairs after an accident.
The average cost of repairing damaged cars has climbed 36% since 2018 and could exceed 5 $000 by the end of this year, according to Mitchell, a company that provides data and software to insurance companies and auto repair businesses. This sharp increase is the main reason for skyrocketing insurance premiums - up 17% in the 12 months to May.
New vehicles SUVs and pickup trucks, including a growing number of electric models, have become so complex and luxurious that seemingly simple repairs can cost a small fortune, auto experts said. Insurers are often responsible for a large portion of these costs, leading them to raise their rates.
Materials designed to wrinkle or distort in the event of a collision to protect pedestrians or passengers, for example, may be difficult or impossible to repair. Many bumpers need to be replaced after low-speed hits because the built-in safety sensors may no longer work properly after repairs. Other systems, even some that appear undamaged, need to be inspected or recalibrated.
"Modern digital architecture is so advanced that systems beyond the point of impact are disrupted," said Ryan Mandell, Claims Performance Manager for Mitchell. "Returning a car to its pre-loss condition is more difficult than at any point in history, and will only get more difficult."
Industry experts have focused particularly on the cost of repairing electric cars and trucks, which are not built like gasoline cars and have different parts.Plus, many mechanics are not trained to work on them.In recent months, news reports and stories shared on social media of astronomical repair bills for cars and electric trucks have caught the eye of car enthusiasts.
Take the case of Chris Apfelstadt and his Rivian R1T pickup truck, which was rammed by a Lexus in February at a red light in Columbus, Ohio while driving with his son in the back seat.
The damage was initially deemed relatively minor and the other driver's insurer offered him $1,600. The actual cost to repair the bumper at a company certified to repair Rivian vehicles - one of only three in Ohio - was $42,000, or about half the selling price of the truck.
>"I expected it to be expensive," said Mr. Apfelstadt, owner of a lighting company, "but still it was a number shocking".
One of the main reasons is that the accident damaged a sleek panel that extends from the rear of the truck to the front roof pillars. Its repair and painting triggered a cascade of costly work, including the removal of interior ceiling material, known as the headliner, and the front windshield.
Part of the cost probably also had to do with Rivian's small size and youth. Like other auto start-ups, the company, which is based in Irvine, Calif., and delivered its first vehicles to customers in 2021, does not sell through franchise dealerships and has had to build a repair network independent from the ground up.
Ford Motor has 2,800 North American dealerships equipped to repair its electric vehicles, as well as an extensive network of independent workshops and suppliers of spare parts. R...
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