The Impact of the Growing Cost of Small Repairs on Insurers

Small repairs, although cheaper are more frequent and represent a large number of claims made to insurers.

To help protect car owner investments and increase overall safety, insurers offer comprehensive insurance policies. These policies pay for repairs resulting from theft, vandalism, weather and other events, such as chips and windshield replacements.

The cost of replacing a windshield has significantly increased due to ADAS systems

Collision insurance help support, other events such as “fender benders” and parking lot incidents which are frequently associated to the bumper and side paneling of vehicles.

Increased Costs in Small Repairs

However, the technologies which are being installed to help reduce accident and protect drivers, passenger, other vehicle’s and pedestrians require sensors and other tech to operate. These items significantly increase the cost of repairs. A windshield replacement which use to coast $200, can now cost $2000 as the ADAS system needs to be recalibrated. The bumper replacement which use to cost $800, now cost $3000 to replace the radar and other proximity sensors.

The Issue Facing Insurers

The problem is that not all vehicles include these components. Manufacturers frequently have trims which do not include these items. Counter to this cost, these technologies do improve safety and reduce the likelihood of collision. Furthermore, new over-the-air updates can also add, remove or modify functionality.

Insurers not only need to know the year, make, model and trim but also the firmware version.

New technologies in cars can increase safety but also increase repair costs
Self-driving autonomous car with relaxed young man sitting at driver seat is driving on busy highway road in the city. Concept of machine learning, artificial intelligence and augmented reality.

Therefore striking a balance can be extremely difficult.

What can insurers do

Insurers can leverage telematics to not only identify (and confirm) the trim level of the vehicle insured but also modify the driver’s behaviour to accommodate and leverage the extra cost associated with their vehicle’s technology.


Learn how to leverage telematics to keep your claims cost down. Reach out now to DEL Telematics to help build a custom solution. Click here to leverage our contact form or call us at 1.647.948.6964