Insurance Premiums Surge as Car Repairs Become More Complex, AAMC Reports

BRISBANE, AU / ACCESS Newswire / September 3, 2025 /AAMC, one of Australia 's leading independent assessing companies, released expert insights into the rising cost of car insurance, citing a convergence of advanced vehicle technology, skilled labour shortages, and expensive replacement parts as key factors pushing premiums higher.

According to AAMC, the economics of vehicle repair have shifted dramatically in the past decade. A minor front-end collision that once cost around $1,500 to fix can now exceed $4,000 due to the presence of advanced driver-assistance systems (ADAS), sensors, and specialised recalibration requirements. Similarly, a windscreen replacement, once a straightforward expense, can now add between $500 and $1,500 in recalibration costs alone.

"Today 's cars are no longer simple mechanical machines-they 're sophisticated digital systems on wheels," said Daniel Lukich, AAMC spokesperson. "That sophistication is raising the cost of even minor repairs, and insurers are recalibrating their models accordingly."

The company notes several critical trends shaping the insurance landscape. For one, modern vehicles require expertise in electronics, software, and advanced materials like aluminium, creating demand for highly specialised and scarce technicians. Additionally, components such as adaptive LED headlights can now cost upwards of $2,000, compared to a fraction of that cost for older models. Finally, proprietary manufacturer software often limits who can perform or finalise repairs, concentrating costs and slowing turnaround times.

To meet these challenges, AAMC is leveraging technology to modernise damage assessment. Through partnerships, AAMC has introduced AI-powered tools and 3D scanning technologies that enhance accuracy, reduce fraud risk, and deliver faster, fairer claim outcomes.

As insurers work to contain costs, independent assessors like AAMC are playing a crucial role. Beyond validating repair estimates, AAMC 's Fair & Reasonable (F&R) reviews ensure cost control on low-value claims, while its oversight of third-party claims helps insurers avoid inflated repair and hire-car charges.

"These pressures ultimately flow through to policyholders in the form of higher premiums," said Lukich. "Our role is to ensure fairness and accuracy in the process so that insurers, repairers, and consumers all operate on a level playing field."

AAMC 's insights underscore that the cost of a car accident in 2025 extends far beyond sheet metal. With advanced sensors, cameras, processors, and software now standard, the repair landscape and insurance premiums are evolving rapidly.

About AAMC

AAMC is one of Australia 's leading independent assessing companies, providing objective, technology-driven vehicle assessments to insurers, repairers, and consumers. With a commitment to fairness, efficiency, and innovation, AAMC helps the industry navigate rising repair costs and deliver balanced outcomes across the claims process.

Media Details:
Company Name : AAMC
Name of contact person: Daniel Lukich
Email: brisbane@aamc.com.au
Location: Brisbane, Australia
Website: https://www.aamc.com.au/

SOURCE:AAMC

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