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Why Car Repairs Have Become So Expensive Why Car Repairs Have Become So Expensive
(about 20 hours later)
New cars and trucks are packed with sensors and technology that protect and pamper drivers and passengers. But those features are also raising the cost of repairs after accidents.New cars and trucks are packed with sensors and technology that protect and pamper drivers and passengers. But those features are also raising the cost of repairs after accidents.
The average cost of making damaged cars good as new has soared 36 percent since 2018, and may top $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. That big increase is the main reason that insurance premiums have been soaring — up 17 percent in the 12 months through May.The average cost of making damaged cars good as new has soared 36 percent since 2018, and may top $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. That big increase is the main reason that insurance premiums have been soaring — up 17 percent in the 12 months through May.
New sport utility vehicles and pickup trucks, including a rapidly 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 on the hook for much of those costs, leading them to raise their rates.New sport utility vehicles and pickup trucks, including a rapidly 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 on the hook for much of those costs, leading them to raise their rates.
Materials designed to crumple or deform in a crash to protect pedestrians or passengers, for example, can be hard or impossible to repair. Many bumpers must be replaced after low-speed dings because the safety sensors embedded in them may no longer work properly after repairs. Other systems, even some that do not appear to be damaged, must be inspected or recalibrated.Materials designed to crumple or deform in a crash to protect pedestrians or passengers, for example, can be hard or impossible to repair. Many bumpers must be replaced after low-speed dings because the safety sensors embedded in them may no longer work properly after repairs. Other systems, even some that do not appear to be damaged, must be inspected or recalibrated.
“The modern digital architecture is so advanced that systems beyond point of impact are being disrupted,” said Ryan Mandell, director of claims performance for Mitchell. “Getting a car back to pre-loss condition is harder than at any point in history, and will only become more challenging.”
Industry experts have been particularly focused on the cost of repairing electric cars and trucks, which aren’t built like gasoline cars and have different parts. In addition, many mechanics aren’t trained to work on them. In recent months, news reports and stories shared on social media about astronomical repair bills for electric cars and trucks have captured the attention of car enthusiasts.