New vehicles are more advanced than ever, featuring cutting-edge technology and sensors that are designed to enhance driver and passenger safety. However, these sophisticated features come at a price—namely, higher repair costs after accidents, which also have a direct impact on insurance premiums.
Rising Repair Costs, Increased Complexity
According to Mitchell, a leading provider of data and software for insurance companies and auto body repair shops, the average cost to repair collision damage has increased by 36% since 2018. This staggering increase, which is expected to exceed $5,000 by the end of the year, is largely responsible for the 17% rise in insurance premiums seen over the past 12 months.
New SUVs, pickup trucks, and electric vehicles, in particular, are becoming increasingly complex. While many of the latest models include luxurious features that greatly enhance the driving experience, this advanced technology means that even the simplest repairs can result in surprisingly high costs.
In the case of materials that are designed to crumple to absorb impact and protect passengers, repairs can be exceedingly difficult, if not impossible. Many components, including bumpers with embedded safety sensors, often require replacement instead of repair. In addition, systems that didn’t suffer any damage must also be inspected or recalibrated to ensure they’re functioning properly.
The Challenges of Electric Vehicle Repair
Repairing electric vehicles also presents a unique set of challenges due to their engineering and the parts they use—as well as a shortage of mechanics who are properly trained in their repairs. However, despite news reports of astronomical repair bills, analysis of repair data and insurance claims has shown that EV repairs aren’t significantly higher than those of a conventional gas-powered vehicle of the same age and price range.
One case that’s made its way through the news cycle is that of Chris Apfelstadt and his Rivian R1T pickup truck. After a rear-end collision, Apfelstadt was shocked to discover that the seemingly minor damage to his bumper would cost $42,000 to fix—approximately half the truck’s sell price. Repairing and repainting a panel that extended from the truck’s rear to the front roof pillars resulted in a series of expensive repairs, including removing the interior ceiling material and the front windshield. To further complicate matters for both drivers and insurers, there are a limited number of certified repair shops for newer manufacturers like Rivian.
Understanding Electric Vehicle Repair Costs
Although electric vehicles are associated with higher costs, it’s important to consider that most electric vehicles in today’s market are luxury models—which will always contribute to higher repair costs. However, repairing EVs from top brands like Hyundai or Nissan will cost approximately $800 more than repairing their gasoline counterparts.
When it comes to the higher-end market, the repair costs for electric and gasoline vehicles are relatively similar. One main difference to be aware of is that battery-powered cars may need more expensive parts and specialized mechanics, which can contribute to higher overall costs.
The good news is that automakers are aware of the rising cost of repairs and are actively working on solutions to make them more efficient, especially for electric vehicles. Companies like BMW, Ford, and General Motors have started to equip their vehicles with crash-force sensors and repair-friendly components, as well as developing repair processes for battery packs. These strategies are aimed at reducing repair costs and simplifying the repair process for auto body shops and insurers.
Trust the Experts for Advanced Repairs
In an era where automotive technology is advancing at an exponential rate, it’s become increasingly vital to choose a repair shop that specializes in original equipment manufacturer (OEM) repairs and advanced driver assistance systems (ADAS) calibration.
At European Collision Center, we recognize the importance of staying up to date with the latest advancements and hold OEM certifications for Mercedes, BMW, Audi, Porsche, Rivian, and Tesla, however, all makes and models are welcome and receive the same high-quality repairs and meticulous attention to detail. To make your repairs as convenient as possible, we also offer complete insurance coordination.
From minor scratches and chips to extensive bodywork, we’ll give your vehicle the focused attention it deserves—with all safety features functional and fully intact. Call us today at (415) 551-9700 or send us a message online.