The cost of vehicle maintenance and repairs has increased by 28% over the past three years, according to a Wall Street Journal (WSJ) article. 

“Getting into a fender bender can be a mind bender these days,” the article says. “That little dent, bump or scrape seems pretty minor until you’re hit with the real damage: the bill.”

Higher costs are due to inflation and more complex repairs needed for vehicles with sensors, the article says. 

Mitchell told the newspaper that an average repair cost for an insurance claim was $4,721 in the second quarter of 2024. The cost is about $800 more than three years ago. 

“In 2024, some 26% of repairs associated with insurance claims have included recalibrating sensors, up from 5% in 2020, per Mitchell,” the article says. “Recalibrations add an average cost of $500.”

A quiz embedded into the story gives readers insight into estimating the cost of minor damage on vehicles. For example, readers can guess the cost to repair what looks like a minor dent on the door of a 2023 Subaru Impreza in Schenectady, N.Y. The quiz reveals the total cost of the repair was $6,500 because the car needed to have its assisted-driving system recalibrated. 

The article says even experienced estimators, such as Scott Benavidez manager of Mr. B’s Paint and Body Shop in Albuquerque, New Mexico, are having trouble estimating repair costs. Benavidez also is chairman of the Automotive Service Association. 

“I say, ‘It’s going to be $1,200,’ and I sit down to write the estimate and it comes out to $2,800,” Benavidez told WSJ. 

Joe Marconi, a former mechanic and shop owner in Patterson, New York, told the newspaper that replacing a side-view mirror on a 2014 vehicle could cost about $200 to $400, including an hour of labor. The same mirror in 2024 could have a camera and sensors for lane-change assistance, plus a heating element. The cost could be $1,200 to $1,500 with an additional hour of labor. 

A consumer, Dusten Dussex, of Silver Spring, Maryland, told the WSJ that a $2,100 quote to fix a dent and scrape on his Toyota Prius Prime has him looking for a second opinion. He also said he might just avoid getting the vehicle repaired if it cost more than $900. 

A Bank Rate article says advanced driver assistance systems (ADAS), which rely on sensors, cameras and radar, can reduce the risk of a crash by as much as 50%. However, the systems also will increase claims. 

Tony Cotto, Director of Auto and Underwriting Policy at the National Association of Mutual Insurance Companies (NAMIC) told Bank Rate, that the cameras and sensors that ADAS relies on are located outside of the vehicle and are more likely to be damaged in the event of a crash. 

“You can’t just replace the camera,” Cotto told Bank Rate. “You have to calibrate it. In order to calibrate it correctly, the mechanic has to spend additional time on that repair and the calibration, and they may need additional equipment, which shops have to invest in.”

While calibrations increase the cost of a repair, an improper calibration could cause an ADAS feature to malfunction, leading to a higher risk of a future crash, Cotto said. 

“The cost to repair and replace components is up; the cost to insure them is going to follow,” Cotto said in the article. 

Jessica Cicchino, senior vice president for research at the Insurance Institute for Highway Safety (IIHS) told Bank Rate that while the cost of repair could increase, the number of smaller claims could decrease due to the technology. 

“We’re seeing AEB, especially, really brings down rear-end crashes,” Cicchino says, “and some of those are the lower-dollar-value claims.” 

Cicchino said overall insurers should be paying out less money on claims for vehicles with AEB systems. 

The National Highway Safety Administration published a new Federal Motor Vehicle Safety Standard earlier this year that will require AEB and pedestrian AEB on all passenger cars and light trucks weighing up to 10,000 pounds by September 2029. 

IMAGES

Photo courtesy of aogreatkim/iStock