2026-09-08 · Source: Carrier Management
Summary in 3 Points • Farmers Insurance warns that high-tech cars may lead to costlier, longer repairs • Advanced Driver Assistance Systems (ADAS) can complicate car repairs post-accident • Federal rules will make some ADAS features standard in new cars by 2029 --- Farmers Insurance has launched a customer education campaign highlighting the potential for increased costs and longer repair times for high-tech cars equipped with Advanced Driver Assistance Systems (ADAS). These systems, which include features like automatic emergency braking and blind spot monitoring, require special parts and careful adjustments when damaged. Federal regulations are also pushing for certain ADAS features to become standard in new vehicles, with rearview cameras already mandated and Automatic Emergency Braking (AEB) set to be required by 2029. The complexity of these systems means that repairs often involve more than just replacing parts, necessitating additional checks and calibrations.
The rise in repair costs for high-tech vehicles could impact underwriting and pricing strategies for auto insurance in the London market. Insurers may need to consider the increased complexity and cost of repairs when developing policy wordings and pricing models. The standardisation of ADAS features in new vehicles could lead to a shift in claims patterns, potentially affecting loss ratios. London Market insurers might also explore new products or endorsements to address the specific risks associated with advanced vehicle technologies.