In his latest blog, PartsTrader Chief Industry Relations Officer Greg Horn takes a closer look at how ADAS, higher deductibles, and other industry shifts may be causing lower-cost repairs to disappear from the data, naturally pushing the average repair cost higher. 

Horn said two statistics caught in his eye: 

• CCC’s Crash Report showed the average repair cost had climbed to an eye-watering $4,818 per claim, a 1.7% increase year over year. Parts costs increased 6%, while labor rates rose 2.9%.    

• ADAS calibrations now appear on 28.3% of repairable appraisals, up from 21.8% the previous year. At the same time, J.D. Power reports that more than 26% of vehicle owners now carry deductibles exceeding $1,000.   

Horn looks at repair costs as a bell curve. If a portion of the lower-cost repairs begin to disappear, the peak of that curve naturally shifts to the right, increasing the average repair cost, even if inflation alone isn’t driving the change. While parts prices, materials, and labor rates are certainly contributing to higher repair costs, they may not be telling the entire story.  

Read Horn's full thoughts in the blog here.