Advanced driver-assistance systems (ADAS) save lives and reduce the number of low-speed fender-benders that have traditionally accounted for most accidents in the United States. At the same time, they have also made it more expensive to repair a vehicle after a crash due to the cost of sensors, calibration, and other fixes. That can be a real downside for owners, but the Insurance Institute for Highway Safety (IIHS) recently found that ADAS features have reduced overall crash repair costs.
The institute noted that ADAS-equipped vehicles from the 2017-2022 model years had collision claims that were about 10% more severe than those of vehicles without the technologies. Personal damage liability coverage (PDL) claim severity increased by 15% for those model years. This shows that while ADAS helps prevent low-speed crashes, the remaining higher-speed collisions result in more severe insurance claims and repairs.
However, overall claims frequency was lower for ADAS-equipped cars, by 10% for collision claims and almost 40% for PDL claims. That has led to reduced costs for insurance companies, with a 5% decline in collision costs and a 30% fall in PDL costs.
If all of that sounds confusing, it boils down to this: You will be less likely to be in a crash with ADAS technologies, but the collisions that do occur cost more to repair and are usually more severe.
This also means you shouldn’t try to avoid vehicles with ADAS. As the IIHS pointed out, unlike light bars and other upgrades that increase repair costs, crash-avoidance technologies have proven to reduce the number of crashes, making it less likely that you’ll have to argue with your insurance company to cover collision damages. Moreover, preventing crashes also prevents the pain and suffering associated with them.
