Our cars are packed with dozens of sensors and endless lines of computer code. Combine that with the rising cost of replacement parts and repairs, and
voila — soaring auto insurance rates.
Look at these numbers from
Bloomberg, which suggests EVs are part of what’s driving costs.
For a gas car, the average repair bill is around $4,437; the average for an electric vehicle, on the other hand, is $6,618.
No wonder the average collision insurance claim jumped 64% between 2018 and 2022. In 2023, auto insurance rates climbed 20%, the biggest increase since 1976.
The upgrades also mean a front-end collision repair is 43% more expensive. It’s not just driver-assist jacking up costs.
- Lots of new cars have LED headlights, which cost around five times more than halogen lights to replace.
- New cars contain more aluminum. Compared to steel, aluminum is lighter, provides better gas mileage and offers more protection in a crash — but it’s harder to fix and more expensive, too.
- EVs take 20 days on average to repair. That's 40% longer than traditional vehicles and $500 more expensive for labor.