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New technologies and rising labor costs are putting pressure on auto insurance carriers and auto repairers by making repairs more costly and increasing repair times, trends that a new report asserts are ‘reshaping’ the industries.
“Cumulative years of record-high inflation have greatly increased the cost of repairing and replacing cars,” Passmore said. “The increasing sophistication of the technology in today’s vehicles is also contributing to rising costs. Vehicles with advanced technology, like cameras and sensors, require more parts to be replaced, higher labor costs, and additional operations for scanning and calibration of systems. This means that repair costs have risen to their largest year-over-year increase. These more complex and expensive repairs are also taking longer, and that shows up as higher rental vehicle costs.”
Lastly, recent reports have also shown that drivers are engaging in riskier behavior behind the wheel, such as speeding, distracted driving and impaired driving, which increases injury and collision claims costs, and compounds the effects of inflation, according to Passmore
EV repairs cost more and come with longer repair times due to capacity constraints and detailed repair procedures.
Medical expenses are another of several price-driving factors called out in the CCC report
https://www.insurancejournal.com/magazines/mag-fea... 