Summary:
Driver assistance systems, designed to improve safety and convenience, are paradoxically contributing to a rise insurance bill. Although features like automatic emergency braking have reduced accident claims by up to 25% in places like the UK, the cost of those claims has increased by 60% over a five-year span. The culprit? These high-tech systems are expensive and complex to repair.
Modern vehicles equipped with radar, lidar, and cameras require precise calibration when damaged. Even a slight sensor misalignment can throw off system accuracy significantly. Repairing and recalibrating these systems demands highly specialized equipment and environments — including level floors, controlled lighting, and automaker-specific calibration tools. This setup can cost repair shops up to $1 million, meaning only select facilities are equipped to handle such work.
Hami Ebrahimi of Caliber Collision explains, “It’s almost becoming too expensive to fix the car,” emphasizing the rising burden of post-accident repairs. Adding to the frustration, many drivers turn off assistance systems they find intrusive, making insurance companies pay to repair systems that often go unused.
This dynamic increases costs for everyone. A study by ValuePenguin projects average car insurance premiums reaching a record $2,101, largely influenced by the growing presence of advanced tech. Automakers, meanwhile, are increasingly making these systems standard, further embedding cost-driving technology into vehicles.
Overall, these trends are pushing up the total cost of vehicle ownership. According to AAA, the average annual expense to own and operate a new vehicle has risen to $12,297 — an increase of $115 from the previous year. While safety technology aims to protect drivers, its complexity and repair demands are quietly raising costs across the board.
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