FYI: Ever Wonder Why Car Repairs Have Become So Expensive? – Here’s Why
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Chris Apfelstadt with his Rivian pickup, which cost $42,000 to repair after it was rear-ended at a stoplight, in Plain City, Ohio, June 15, 2023. More technology and creature comforts, as well as a parade of new electric vehicles, have complicated the job of repairing cars after accidents, and sent the costs soaring. (Maddie McGarvey/The New York Times)MADDIE MCGARVEY/NYT
(SFGATE) 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% 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% in the 12 months through May.
New SUVs 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.
“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.
FILE Ñ A Rivian service center in El Segundo, Calif., June 10, 2022. The automaker does not sell through franchised dealers and has had to build an independent repairnetwork from scratch. (Alex Welsh/The New York Times)ALEX WELSH/NYT
Consider the case of Chris Apfelstadt and his Rivian R1T pickup truck, which was rear-ended by a Lexus in February at a stoplight in Columbus, Ohio, while he was driving and his infant son was in the back seat.
The damage was initially deemed relatively minor, and the other driver’s insurer offered him $1,600. The actual cost to fix the bumper at a business certified to repair Rivian vehicles — one of just three in Ohio — was $42,000, roughly half the truck’s selling price.
“I expected it to be expensive,” said Apfelstadt, who owns a lighting company, “but it was still a shocking number.”
A key reason is that the accident damaged a sleek panel that extends from the truck’s rear to front roof pillars. Repairing and repainting it set off a cascade of pricey work, including removing the interior ceiling material, known as the headliner, and front windshield.
Some of the cost probably also had to do with Rivian’s small size and youth. Like other auto startups, the company, which is based in Irvine, California, and delivered its first vehicles to customers in 2021, does not sell through franchised dealers and has had to build an independent repair network from scratch.
Ford Motor has 2,800 North American dealers equipped to repair its electric vehicles, along with a vast network of independent shops and aftermarket suppliers. Rivian has certified about 200 North American collision shops.
“It’s a challenge that we’re newer to market,” said Noe Mejia, Rivian’s vice president of service operations. But, he added, Rivian’s smaller scale and lack of bureaucracy allow it to work directly with customers and shops to ensure repairs meet high standards.
Apfelstadt’s story was discussed extensively on the internet. To some people, accounts such as his, and harrowing tales of cars totaled after minor accidents shared online by some owners of Tesla cars, have become cautionary tales about the financial perils of owning electric cars.
