nately, as vehicle complexity has risen, so
have automotive claim costs, and insurers
will increasingly face pressure to do what
they can to manage that increase.
In 2003, 47 percent of all repairable vehicle appraisals were for vehicles ages
zero to three years of age (MY 2000 to
MY 2003). When vehicle sales fell sharply during the recession, the vehicle fleet
aged, but a seven-year streak of strong
new vehicle sales has led to growth
among the newest vehicles again.
In 2016, 40 percent of all repairable
vehicle appraisals were for vehicles ages
zero to three years of age, but now these
are MY 2013 to MY 2016 that are much
more complex. For example, standard options offered on the base MY 2015 Ford
F-150 pickup include items like side-im-pact air bags, head curtain air bags, stability control, and traction control – none
of which were standard on the MY 2000
or earlier versions. A comparison of vehicle repair costs by vehicle age and how
those costs have grown over the last five
years point to further increases in repair
costs in the coming years (see Figure 1).
All of these changes in vehicle design
(such as the introduction of more complex lighting technology in headlamps) as
well as changes in material types among
various body panels have led to higher
cost parts for the industry. For example,
the percent of replaced lamps that are
LED or Xenon has grown each year over
the last 10-plus years (see Figure 2.1).
In 2016, the average cost of a Xenon/
LED lamp was 56 percent higher ($527)
than non-Xenon/LED lamps ($338) (Fig.
2.2). While the cost difference has shrunk
over the years, it has more to do with the
increasing complexity of all lamps.
Growth in electronic vehicle content –
items added to address vehicle safety or
convenience (none of which were needed
previously for the vehicle to simply operate in the past; i.e., getting from point A
Repairable Vehicles – Collision and Liability Losses
Average Total Cost of Repairs by Vehicle Age Group
Comparison of Average OE List Price for Vehicle Lamps
CY2006–2016: Xenon/LED vs Standard (includes headlamps,
taillamps, fog lights, etc.)
Source: CCC Information Services Inc.
Source: CCC Information Services Inc. Source: CCC Information Services Inc.
+ 4.5% A$3,800
of tAil lAmp Assy
% of heAdlAmp Assy
% of fog lAmp Assy
% of combo lAmp Assy
current yr 1– 3 yrs 4–6 yrs 7 yrs plus total
0.0% 1.3% 2.5% 3.8% 5.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
cy12 cy13 cy14 cy15 cy16
FiGuRE 2.1 FiGuRE 2.2
Headlamp Cost and Complexity Grows
Percent of Replaced Lamps that are Xenon/HID/LED
cy16 cy15 cy14 cy13 cy12 cy11 cy10 cy09 cy08 cy07 cy06 Avg oe list price for non-xenon/led lAmps Avg oe list price for xenon/led lAmps