Report reveals older vehicles and new tech raise repair costs

CCC Intelligent Solutions’ ‘Crash Course Q1 2025 Report’ reveals that an aging US car parc and the complexity of EVs, hybrids and ADAS are increasing repair costs and total loss frequency.

According to the report, the cost of repairs more than doubled over the last decade and is a growing concern for insurers, particularly for new vehicles with advanced technology.

“As premium rates increase to cover these and other expenses, insurers and repairers must work together to find ways to mitigate these rising costs,” said CCC. “Repairing advanced vehicles requires expertise and access to specialised parts, and when parts are unavailable or repairs are too expensive, vehicles can become disposable, leaving the industry and consumers in a precarious position. The challenge of what to do with ‘totalled’ electric vehicles when parts are scarce is particularly pressing.”

Kyle Krumlauf, Director of Industry Analytics at CCC and co-author of Crash Course, described the US vehicle fleet transformation as “anything but cyclical”.

“We’re seeing the convergence of several structural shifts including longer vehicle life, increasingly complex and tech-driven repairs, cost inflation, changing ownership models and rising consumer expectations. It’s this intersection – not any single trend – that marks a true inflection point for the auto claims and repair economy. Our Q1 report helps the industry understand these forces and plan accordingly,” said Krumlauf.

Key findings from the report are: