Farmers launches compaign to educate consumers about ADAS repair costs

Farmers Insurance has created a public relations campaign to inform consumers about the expenses related to newer vehicle safety features and how they affect insurance and repair costs.

“Today’s cars can do more to help keep drivers safe than ever before,” a press release states. “Cameras, sensors, and alerts can warn drivers about potential collisions, help them stay in their lanes, and make it easier to see what’s around them. But many of those same safety features rely on advanced technology built into windshields, bumpers, mirrors, and other common repair areas. That means when damage happens, repairs can be more complex and costly.”

ADAS features may require special parts, computer checks, and careful adjustments, the release notes. 

“Many drivers use these safety features every day, but they may not connect them to the cost of repairing a car after an accident,” Michaela Rush, Farmers’ head of national auto physical damage, says in the release. “Features designed to help prevent collisions can also make repairs more complicated and costly. Understanding that connection can help consumers make informed decisions about their car insurance coverage.”

Many features are becoming standard for vehicles, the release states. It adds that federal requirements also mandate rearview cameras. 

A recent Bloomberg analysis found that 21 million vehicles have been recalled for faulty backup cameras since 2018.

A 2014 National Highway Traffic Safety Administration (NHTSA) final rule mandated the safety system technology in all new vehicles under 10,000 pounds by May 2018. 

NHTSA has continued to make steps to mandate safety systems in vehicles, including one for automatic emergency braking (AEB) in pedestrian vehicles by September 2029.  

“These safety-focused requirements reflect a broader shift toward vehicle technology designed to help reduce crashes and protect drivers, passengers, and others on the road,” Farmers’ release states. “While many factors influence roadway safety, U.S. traffic fatalities have declined for three consecutive years according to NHTSA. Still, nearly 40,000 people die, and more than 2.4 million are injured in vehicle crashes each year, underscoring the continued need for safe driving behaviors and distraction-free driving.”

ADAS features are one factor increasing repair costs, the release states. It adds that many components, such as bumpers and windshields, contain cameras, sensors, and radar systems. 

In 2024, a panel at a Collision Industry Conference (CIC) meeting discussed changes in advanced technology refinishing methods on areas such as bumpers. The conversation focused factors that should be considered when refinishing an area where a sensor is located, such as material thickness and possible replacement of the part. 

Many OEMs have also updated their position statements regarding the parts and procedures needed to complete repairs involving ADAS and areas where ADAS technology is found, including bumpers and glass. 

Most recently, GM reworked the language in its ADAS position statement to say it strictly prohibits salvaged, recycled, reconditioned, remanufactured, aftermarket, or any secondary-market ADAS radars, cameras, sensors, or related components that are not approved.

Farmers states that repairs may involve more than replacing damaged parts. They can also include: 

• • “Replacing technology components;
  • “Diagnostic scans before and after repairs;
  • “Testing vehicle safety systems;
  • “Calibrating cameras, sensors, or radar equipment;
  • “Additional labor and specialized equipment.”

“According to the Society of Automotive Engineers (SAE), a standards development organization serving the mobility industry, calibration helps ensure cameras, sensors, and radar systems continue working correctly after repairs or component replacement,” the Farmers release states. 

The release adds that consumers are paying to insure vehicles with more advanced safety technology than ever before. Yet, it notes that while the technology can help protect drivers and passengers, it may also cost more to repair or replace after a covered loss. 

It states that car insurance premiums could change as the cost of parts, labor, and repairs changes over time. 

“Today’s vehicles offer incredible safety benefits, and that’s a positive development for drivers,” said Greg Ritter, Farmers’ head of auto product. “At the same time, it’s important for consumers to understand that more technology often means more complex repairs. Having the right insurance coverage in place can help provide support when the unexpected happens.”

Last month, Matt Moore, Insurance Institute for Highway Safety-Highway Loss Data Institute (IIHS-HLDI) chief insurance operations officer, said in a post on the organization’s website that crash avoidance tech is raising and slashing repair costs. 

“If you got in a crash, you were probably shocked at the size of the bill,” Moore said. “But if you made it through the week without hitting anything — and without anybody hitting you — you paid nothing. That, in a nutshell, is how crash avoidance systems are saving consumers money even as they also contribute to higher average repair costs: Though they’re expensive to fix, they’re remarkably good at preventing crashes.”

Moore points to a recent HLDI comparison of 2017-2022 model year vehicles with and without a bundle of driver assistance features. He says the comparison found collision claim severity was about 10% higher for equipped vehicles. 

“That lines up with what we know about sensor replacement,” he writes. 

He adds that the same study found claim frequency was lower for the equipped vehicles. It was about 10% lower for collision claims and 40% lower for property damage liability (PDL) claims. 

“As a result, overall losses, or the total amount it costs insurers to pay for all the claims in a given year, were about 5% lower for collision coverage and almost 30% lower for PDL coverage for the vehicles loaded with crash avoidance features,” he writes.

Farmers encourages consumers to review insurance coverage regularly to determine whether the coverage still matches a vehicle’s current value and technology. It also notes that choosing the right deductible can help balance monthly premiums and out-of-pocket expenses after a claim. 

It also points to its telematics app, Signal by Farmers, as a way to understand safer driving habits and says consumers can talk to their agents about potential car insurance savings. 

The insurance company also uses the promotion to tell consumers about its “Guaranteed Repair Program” but notes that customers always have the choice to choose where to have their vehicle repaired. 

Additionally, Farmers tells consumers to ask shops about their expertise and whether the shop will need to transfer the vehicle to another facility for specific work. 

The press release encourages consumers to ask shops about what technology may be affected. It also warns that safety features involving ADAS may take longer due to diagnostic scans, calibrations, parts availability, or specialized labor. 

“Customers may want to save estimates, invoices and repair records, including any notes about diagnostics, calibration or safety system testing,” the release states.

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