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With interest rates soaring and the cost of new vehicles at record highs, many people are choosing to keep their vehicles longer before trading in for something new.
But if there’s a wreck or mechanical problem, that’s just another way for motorists to experience the sticker shock associated with being a modern car owner.
So why has it gotten so expensive?
It’s true that inflation has taken its toll on just about every facet of our economy, but that’s not the sole reason for rising auto repair bills. Let’s take a look at the statistics before we get into the factors that are behind them:
- Auto repairs are 36% higher compared to 2018.
- The cost of fixing a wrecked car could exceed $5,000 by the end of the year.
- Insurance premiums have ticked up 17% since last year.
All of this adds to a sense of dread after a collision or any other out-of-pocket expense. But before you blame greedy mechanics and auto body technicians, there are some legitimate reasons that things are so costly.
Modern cars are packed with more technology than ever before, so when something goes wrong it’s complicated and expensive to replace.
Then there’s safety equipment like sensors and special materials designed to crumple during a crash, resulting in time-consuming repairs and costly raw parts.
Who gets stuck with the bill?
You might be thinking that as long as you’re not responsible for the damage it won’t matter how much the repairs cost. After all, that’s why you have insurance.
But even if your policy covers the full cost, these rising prices have forced insurers to raise the rates for everyone. So that means even those whose vehicles don’t need extensive repairs are still paying more in the form of higher premiums.
