Vehicle repair costs continue to climb – increasing pressure on consumers, insurers, repairers, and the broader collision repair ecosystem

by Edward Salamy

LAS VEGAS – June 9, 2026 – From consumers facing higher insurance premiums to repairers navigating increasingly complex repairs, the economics of vehicle collisions are changing rapidly. 

A newly released consumer research report by Dr. Blaire O’Neal, “Totaled: The Real Costs of Vehicle Loss,” explores how rising repair costs are contributing to a growing trend: more vehicles are being declared total losses following accidents that previously may have been economically repairable.  

For aftermarket businesses, insurers, repairers, and suppliers, several important trends are emerging.

1. More vehicles are crossing total loss thresholds

As repair costs rise, insurers are increasingly reaching the point where repairing a vehicle no longer makes economic sense.

According to CCC Intelligent Solutions, repair costs continue to increase due to advanced vehicle technology, calibration requirements, higher labor costs, and growing parts expenses. Vehicles with moderate collision damage are now more likely to be declared total losses than they were only a few years ago.

For consumers, that often means entering a replacement vehicle market that remains expensive and highly competitive.

2. Repair economics are becoming increasingly sensitive to parts pricing

Collision repair estimates have become increasingly sensitive to replacement parts pricing, particularly as vehicle complexity grows.

Even modest increases in parts costs can influence whether a repair remains economically viable, especially for older vehicles. As repair estimates rise, vehicles can more quickly approach insurer total loss thresholds.  The continued availability of quality aftermarket collision parts can play an important role in helping maintain affordable repair pathways for consumers and insurers alike.

This has increased industry focus on maintaining competitive repair options that help control costs while supporting quality, efficiency, and parts availability.

3. Repair affordability is emerging as a broader consumer issue

Vehicle affordability discussions typically focus on the cost of purchasing a vehicle, but repair affordability is becoming equally important.

Rising repair costs can contribute to higher insurance premiums and increased out-of-pocket expenses for consumers. For many households that rely on older vehicles, the loss of an otherwise repairable vehicle can create significant financial strain.  

As repair costs continue to rise, affordability is becoming a growing concern for consumers across the vehicle ownership lifecycle.

4. The effects reach across the collision repair industry

The growing total loss trend affects far more than just collision repair shops.

Insurers continue facing rising claim costs. Repairers are navigating increasingly complex repairs and changing customer expectations. Parts suppliers and distributors must adapt to shifting demand and ongoing supply chain challenges. At the same time, consumers expect repairs to be completed quickly and affordably despite growing vehicle complexity.

As repair costs continue to rise, conversations surrounding affordability, repairability, and parts availability are likely to remain an important focus across the collision repair industry. 

The full consumer research report can be found here: “Totaled: The Real Costs of Vehicle Loss.” 

Edward Salamy is the Executive Director of the Automotive Body Parts Association (ABPA), representing manufacturers, distributors, and suppliers of aftermarket collision repair parts.

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