While new technology may be making cars safer, it doesn’t make them any simpler or less expensive to insure. In fact, the opposite may be true.

Growing Repair Costs

The growing use of new technologies in vehicles has contributed to an increase in the average vehicle repair cost. Ten years ago, replacing a bumper after a fender bender was relatively simple and not overly expensive (around $300). Today, between cameras, sensors, and wiring, the cost of replacing a rear bumper has nearly doubled. It’s not just bumpers either. Everything from side view mirrors to windshields are being equipped with sensors, cameras, and more. Increasing parts costs are only part of the equation. With a higher number of parts needing to be replaced and more time needed to replace them comes increased labour costs as well.

Added Complexity

Due to design and construction complexities, insurance companies may require more time to determine whether or not a vehicle is a write-off after an accident. While the average bumper in 2010 had 19 different parts and components, the bumper of the same vehicle in 2017 had an average of 49 parts. After an accident, each of these parts must be examined, evaluated, and priced out. While vehicle damage may appear only cosmetic, the damage to underlying components, such as sensors and wiring, may cost an extraordinary amount to repair.

Features such as crumple zones, sensors, cameras and the like make our vehicles significantly safer. Just remember that added safety does come with an increase in cost for repairs, maintenance, and insurance.