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Modern cars are packed with electronic devices to reduce accidents, but their high repair costs often lead to insurers” totaling” vehicles. The increase in write-offs benefits auction firms but continues to drive higher insurance premiums for drivers.
For example, newer models include “Advanced Driver Assistance Systems” such as automatic braking and lane-keeping assistance; sensors and cameras are typically located on the exterior of the vehicle and are easily damaged in crashes and hail storms. When that happens, car technicians need to install, test and precisely calibrate the equipment; in several crash scenarios recently examined by the American Automobile Association, ADAS accounted for 38% of repair costs on average. AAA estimated the cost of replacing and calibrating a side mirror with a camera on a new F-150 pickup truck, for example, at an eye-watering $1,600.
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