ADAS Repair & Your Rising Premiums

Shocking New UK Data Reveals Advanced Driver-Assistance System (ADAS) Repairs Are Fueling Billions in Motor Insurance Costs, Driving Your Premiums Sky-High and Leaving You Vulnerable to Unexpected Bills – Is Your Policy Ready for the True Price of Modern Car Technology

The advanced technology in your new car, designed to keep you safer than ever, is also silently driving up your motor insurance costs. Here at WeCovr, an FCA-authorised broker helping over 750,000 UK customers, we see daily how the hidden expense of repairing Advanced Driver-Assistance Systems (ADAS) is hitting drivers’ pockets.

These complex systems, once the preserve of luxury vehicles, are now standard on most new cars, vans, and fleet vehicles. While they are proven to prevent accidents, the cost to repair them after even a minor bump can be astronomical. This special report reveals the true scale of the problem, explaining exactly why your premium is rising and what you must do to protect yourself from unexpected and crippling bills.

What Exactly Is ADAS and Why Is It In My Car?

If you’ve bought a car in the last five years, it almost certainly has some form of ADAS. Think of it as a suite of electronic co-pilots, constantly monitoring your surroundings to prevent a collision. They rely on a sophisticated network of cameras, sensors (ultrasonic and radar), and lidar units, which are often embedded in your windscreen, bumpers, wing mirrors, and front grille.

Common ADAS features you might recognise include:

• Autonomous Emergency Braking (AEB): Automatically applies the brakes if it detects an imminent crash with a car, pedestrian, or cyclist.
• Lane Keep Assist (LKA): Gently steers your car back into its lane if you start to drift across the white lines without indicating.
• Adaptive Cruise Control (ACC): Maintains a set distance from the vehicle in front, automatically speeding up and slowing down with the flow of traffic.
• Blind Spot Monitoring (BSM): Uses lights in your wing mirrors to alert you to vehicles you can't see when you intend to change lanes.
• Traffic Sign Recognition (TSR): Reads speed limit and other road signs, displaying the information on your dashboard or head-up display.
• Parking Sensors and 360-Degree Cameras: Makes manoeuvring in tight spaces much safer and easier, providing an overhead view of your vehicle.

These systems are not just desirable gadgets; they are increasingly a legal requirement. The UK has adopted the EU's General Safety Regulation 2 (GSR2), which, from July 2024, mandates many of these safety features on all newly registered cars. They are also critical for achieving a high five-star Euro NCAP safety rating, which is a major selling point for manufacturers and a key consideration for fleet managers focused on duty of care.

In short, ADAS is here to stay because it saves lives and prevents injuries. The problem isn't the technology itself, but the staggering, often unforeseen, cost of putting it right when it gets damaged.

The Core Problem: The Soaring Cost of ADAS Repairs

A simple windscreen replacement used to be a straightforward, relatively inexpensive job. Today, it's a complex and costly procedure. The camera mounted behind your rear-view mirror is the 'eye' of your car's ADAS. After replacing the glass, this camera must be recalibrated with laser-like precision. If its alignment is out by even a single millimetre, your safety systems could fail catastrophically when you need them most.

This essential process, known as ADAS recalibration, requires a specialist workshop with highly trained technicians and expensive, manufacturer-specific diagnostic equipment. The result? A repair bill that is often three, four, or even ten times higher than for a non-ADAS vehicle.

According to the Association of British Insurers (ABI), the cost of vehicle repairs has surged by over 40% in the last couple of years, with ADAS complexity, supply chain issues, and inflation being primary drivers. This technological shift is adding billions to the UK's total motor insurance claims bill every year.

Real-World Cost Comparison: The Price of a Minor Bump

As this table clearly illustrates, what were once minor cosmetic repairs are now major technical procedures. A low-speed car park knock that previously meant a £200 smart repair could now damage multiple radar and ultrasonic sensors in the bumper, leading to a four-figure bill that will trigger an insurance claim.

How This Directly Inflates Your Motor Insurance Premium

Insurers are not charities; they are commercial businesses. The price of your motor policy is carefully calculated to cover the expected cost of future claims, along with administrative expenses, taxes, and a profit margin. When the average cost of a claim skyrockets, premiums for everyone must inevitably follow suit.

Data from the Office for National Statistics (ONS) has consistently shown motor insurance as one of the fastest-rising components of household expenditure. Throughout 2023 and 2024, many responsible drivers saw their renewal quotes jump by 40% or more, even with a long no-claims bonus and a clean driving record.

The rising cost of ADAS repairs is a huge part of this story. Insurers are now pricing in the high probability of an expensive technology repair for every modern vehicle on their books. It's a simple, unavoidable equation:

Higher Repair Costs + More Complex Technology = Higher Total Claims Bill = Increased Premiums for All Drivers

This affects everyone, from private car owners to self-employed van drivers and businesses managing large fleets. For a company running a fleet of modern vehicles, the cumulative impact of these rising premiums can be a significant and unexpected blow to the annual budget, making expert advice on fleet insurance more critical than ever.

The Hidden Danger: When ADAS Repairs Go Wrong

Cost isn't the only concern. The biggest risk is a faulty or incomplete repair. Incorrect calibration is not just an inconvenience; it can have life-threatening consequences:

• Failed AEB: Your car might not brake in an emergency, leading to a serious collision you thought the technology was there to prevent.
• False Activation: Your Lane Keep Assist could suddenly swerve the car into oncoming traffic, or the emergency brake could slam on when detecting a harmless shadow or a plastic bag on the road.
• Inaccurate Cruise Control: Your adaptive cruise control might misjudge the distance to the car ahead, failing to slow down in time or accelerating unexpectedly.

To combat this grave risk, the insurance industry, led by the experts at Thatcham Research, has established an Insurance Industry Requirement (IIR) for the safe repair of ADAS-equipped vehicles. Always insist that any garage repairing your car is IIR-compliant. Using a non-specialist to save a few pounds could invalidate your insurance policy and, more importantly, put you, your passengers, and other road users in grave danger.

Is Your Motor Insurance UK Policy Fit for the ADAS Era?

With repair costs soaring, the small print in your insurance policy has never been more important. A cheap policy might look appealing on a price comparison website, but it could leave you dangerously exposed to massive unexpected bills if it doesn't provide the right level of cover. Here's what you need to check right now.

Your Legal Obligation and Levels of Cover

First, it is a legal requirement in the United Kingdom to have at least Third-Party Only motor insurance to use a vehicle on public roads. But for any modern car, this is woefully inadequate.

1. Third-Party Only (TPO): This is the minimum legal requirement. It covers injury you cause to other people or damage you cause to their vehicles or property. It provides zero cover for any damage to your own car.
2. Third-Party, Fire and Theft (TPFT): This includes everything in TPO, plus cover for your vehicle if it is stolen or damaged by fire. It still does not cover repairs to your car if you have an accident that is deemed to be your fault.
3. Comprehensive: This is the highest level of cover available. It includes everything from the lower levels, and crucially, it also covers damage to your own vehicle in an accident, regardless of who was at fault. For any car with ADAS features, a Comprehensive motor policy is absolutely essential.

Key Policy Details to Scrutinise

• Windscreen Cover: Does your policy explicitly cover the full cost of recalibration? Many insurers have a separate, lower limit for glass replacement (e.g., a £150 limit for the glass itself), which won't come close to covering a modern windscreen job that could cost £1,500. You could be left to pay the £1,350 difference yourself. Look for policies with high or unlimited glass cover.
• Approved Repairer Network: Most policies require you to use an insurer-approved garage to benefit from full cover and services like a courtesy car. Check that their network includes specialists who are IIR-compliant and can handle your make and model. If you insist on using your own garage, the insurer may limit their contribution or not pay at all.
• Courtesy Car Provision: A standard courtesy car is usually a small, basic Class A vehicle (like a Fiat 500). Is that suitable if your advanced seven-seater family SUV or electric vehicle is off the road for two weeks waiting for a specific sensor from overseas? Look for optional extras that provide an "enhanced" or "like-for-like" courtesy car.
• Excess: This is the amount you agree to pay towards any claim. A policy with a temptingly low premium might have a very high compulsory excess. Be realistic about what you can afford to pay out of pocket at a moment's notice.

Navigating these complexities can be daunting. An expert, independent broker like WeCovr can be invaluable. We compare policies from a wide panel of leading UK insurers, analysing the fine print to find you the best car insurance provider. We ensure your chosen vehicle cover is robust enough for ADAS repairs and doesn't contain nasty surprises.

Essential Legal and Financial Concepts Explained

Understanding the language of insurance is key to getting the right deal and protecting your finances. Here are the core concepts you need to know.

No-Claims Bonus (NCB) or No-Claims Discount (NCD)

This is a significant discount you earn for each consecutive year you drive without making a fault claim on your policy. It is one of the biggest factors in reducing your premium, with discounts often reaching 60-75% after five or more claim-free years.

• Impact of a Fault Claim: Making a claim where you are deemed at fault will typically reduce your NCB, usually by stepping it back two years (e.g., from 5 years to 3 years). This means your premium will increase significantly at your next renewal, on top of any market-wide price rises.
• Windscreen Claims and ADAS: Historically, most windscreen claims didn't affect your NCB. However, due to the high cost of ADAS recalibration, a growing number of insurers now treat a windscreen replacement as a fault claim that will impact your bonus. This is a crucial detail to check in the policy wording.
• NCB Protection: For a small additional fee, you can purchase NCB Protection as an optional extra. This allows you to make one or sometimes two fault claims within a set period (e.g., three years) without the level of your discount being reduced. In the ADAS era, this is a highly recommended safety net.

Your Policy Excess

The excess is the fixed amount you must contribute towards the cost of any claim you make. It is made up of two parts that are added together:

• Compulsory Excess: This part is set by the insurer and is non-negotiable. It is often higher for younger or less experienced drivers, or for high-performance cars.
• Voluntary Excess: This is an amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess can lower your annual premium, but you must ensure you can comfortably afford the total amount (compulsory + voluntary) if you need to claim.

For an ADAS-related bumper repair costing £2,500, if your total excess is £500, you would pay the first £500 to the garage and your insurer would pay the remaining £2,000.

Practical Strategies to Manage Costs and Stay Safe

While rising costs are a market-wide issue, you are not powerless. Here are effective strategies to mitigate the financial impact of ADAS and enhance your road safety.

1. Drive Defensively: The best way to avoid repair costs is to avoid accidents. Maintain safe following distances (the 'two-second rule'), anticipate hazards, and drive smoothly. This gives your ADAS more time to work effectively and reduces the chance of the minor bumps that can damage expensive sensors.
2. Park Smart: A huge number of claims are for low-speed parking incidents. Where possible, park away from busy areas, shopping trolley bays, and tight corners to minimise the risk of scrapes and dings to your bumpers and wing mirrors.
3. Choose Your Repairer Wisely: If you need a repair, always ask the garage two key questions: "Are you IIR-compliant for ADAS work?" and "Do you have the specific manufacturer-approved equipment to recalibrate my vehicle's systems correctly?" If they hesitate or seem unsure, go elsewhere. Your insurer's approved network is usually the safest and most reliable choice.
4. Consider Insurance When Buying a Car: Before you fall in love with a new or used car, research its insurance group and potential repair costs. Online forums and owners' clubs can provide invaluable real-world insight into the running costs and reliability of a particular model.
5. Shop Around for Your Motor Policy: This is the single most effective way to save money and get the right cover. Never simply accept your renewal quote. Loyalty rarely pays in today's insurance market. Using an independent, FCA-authorised broker gives you access to a wide range of policies, ensuring you find the best vehicle cover for your specific needs and budget.
6. Use an Expert Broker: A specialist broker like WeCovr can find policies that cater specifically to the challenges of modern vehicles. We enjoy high customer satisfaction ratings because we take the time to find the right fit for private cars, commercial vans, motorcycles, and complex fleet insurance requirements.
7. Bundle Your Cover: Customers who arrange their motor or life insurance through WeCovr can often benefit from exclusive discounts on other policies, such as home or business insurance, saving you even more money and simplifying your financial admin.

The Future of ADAS and Your Insurance

The trend towards more advanced vehicle technology is only going to accelerate. We are on the cusp of even more sophisticated systems, including enhanced vehicle-to-everything (V2X) connectivity and semi-autonomous driving features. For insurers and drivers, this means:

• Continuous Evolution: The insurance and repair industries must constantly adapt to new repair techniques, software updates, and technologies.
• Data is King: Telematics (or "black box") insurance, which bases premiums on your actual driving behaviour, may become more common as a way for verifiably safe drivers to offset rising baseline premiums.
• The EV Complication: Electric vehicles add another layer of complexity. Their integrated battery systems and unique thermal management requirements can further increase repair costs and durations, a factor insurers are now building into their pricing models.

Staying informed and ensuring your insurance policy is truly fit for purpose has never been more critical.

Don't get caught out by the hidden costs of modern car technology. Ensure your policy is ready for the future of driving.

Ready to check if your policy is ADAS-ready? Get a fast, free, and fair motor insurance quote from WeCovr today and drive with confidence knowing you have the right cover.