In recent years, auto repairs have become more costly because automakers are shifting away from cheap repairs and focusing on expensive part replacements.
Insurance companies, which cover most car repair costs, have been trying to lower expenses. To do this, they have been negotiating with car manufacturers to make repairs more affordable.
Insurance companies have been working with automakers to share claim data and suggest changes that could lower repair costs.
This includes recommending the use of anti-theft devices and advanced dent removal equipment. However, getting big brands like Maruti and Honda to cooperate has been a challenge, as they play a major role in supplying car parts.
Why Car Repairs Are Getting More Expensive
One of the biggest issues is the lack of child parts. For example, if a headlight gets damaged, car owners often have to replace the entire assembly instead of just the broken part. This makes repairs much more expensive.
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Automakers were reminded that if they did not provide smaller replaceable parts, the cost of repairs would increase, making insurance premiums go up.
Car owners are also paying more out of pocket due to depreciation. If a four-year-old car gets a dent, the owner must cover nearly half of the repair cost.
However, if the dealer has advanced dent repair equipment, the damage could be fixed at a much lower price. Unfortunately, not all dealers have such technology, so many customers are left with high bills.
To address these rising costs, some private companies are pushing automakers to introduce child parts and standardize repair costs.
The goal is to make repairs more affordable by allowing smaller parts to be replaced instead of entire assemblies. If manufacturers cooperate, repair costs could significantly decrease.
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Despite these efforts, automakers continue to favor full part replacements over simple repairs. This is because selling entire assemblies is more profitable for them.
Unless there is a major industry shift, car owners may have to deal with higher repair costs for the foreseeable future.
