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Car Repair Costs Soar, Fueling Motor Insurance Claims
29 Apr
Summary
- Higher spare part prices increase vehicle repair expenses.
- EV repairs are more costly due to batteries and electronics.
- Customers may pay 20-40% of costs despite insurance.
Motor insurance claims in India are on the rise due to escalating repair costs. This trend is driven by several factors, including the increasing price of spare parts and the sophisticated electronic systems now common in vehicles. Modern cars often require replacement of interconnected electronic components, even for minor damages, making repairs more expensive.
Electric vehicles (EVs) present a unique challenge. While their routine maintenance might be cheaper, accident repairs can be substantially higher. This is largely due to the costly battery systems and specialized electronics involved, coupled with a developing repair infrastructure. Consequently, even moderate damage to an EV can lead to extensive diagnostics and component replacements.
Insurance experts highlight that customers often face out-of-pocket expenses beyond their policy coverage. These can include deductibles, depreciation costs on parts, and the expenses for consumables. Factors like rising labour charges and the integration of advanced driver-assistance systems (ADAS) further contribute to the increased severity of claims. Policyholders may still be responsible for 20-40% of total accident costs.
