IIHS Study: Driver Assist Systems Raise Per-Crash Repair Costs But Sharply Cut Overall Insurance Payouts

On August 12, the Insurance Institute for Highway Safety (IIHS) released research data showing that vehicles equipped with driver assistance systems incur about 10% higher repair costs per collision claim compared to otherwise identical models without such systems. The institute’s comparative analysis of model-year 2017–2022 vehicles found that those equipped with automatic emergency braking, lane departure warning, and blind-spot monitoring systems had, on average, 10% higher per-claim payouts under collision coverage. However, these vehicles experienced approximately 10% fewer collision claims and nearly 40% fewer property damage liability claims. When factoring in both frequency and severity, vehicles with driver assistance systems saw overall collision coverage losses decrease by about 5%, and property damage liability losses drop by nearly 30%. The study also noted that the average property damage liability claim amount was 15% higher, primarily because driver assistance systems reduced low-speed minor collisions, thereby increasing the proportion of higher-speed crashes—which tend to involve larger payouts—thus raising the average claim amount. Additionally, data from the U.S. Bureau of Labor Statistics shows that vehicle repair costs have risen by more than 40% since 2020. Key contributing factors include increased complexity of sensors and headlights, the market dominance of SUVs and pickup trucks, the fact that nearly two-thirds of new vehicles now come with all-wheel drive, and over half of new vehicles featuring turbocharged or hybrid powertrains.