Toronto, Ontario -- Vehicle complexity, not volume, is driving up repair costs, according to the authors of Crash Course 2025 Q4, a new industry report from CCC Intelligent Solutions examining claims and repair trends over the past year.
The report’s authors say diagnostics and calibrations have shifted from occasional procedures to routine operational requirements as advanced driver-assistance systems become standard across more vehicles. Scans now appear on 88 percent of direct repair program estimates, while calibrations are included on 35 percent, both marking significant increases over recent years. Most calibrations still appear on supplements rather than initial estimates, a sequencing issue the authors say contributes to longer cycle times and added administrative friction.
Vehicle complexity emerges as the dominant cost driver. While the average age of vehicles on the road continues to rise, the authors say older vehicles are no longer simpler to repair. Advanced driver-assistance systems, hybrids, electric vehicles and embedded electronics are now common deeper into the repairable fleet, increasing labour requirements, tooling needs and repair planning complexity.
That complexity continues to drive severity higher even as broader inflation eases. The average total cost of repair reaches US$4,768 through the third quarter of 2025, according to the report. Labour rates rise by about three percent year over year, while average labour hours per repair decline slightly as a greater share of vehicles are declared total losses rather than repaired.
Parts availability and pricing remain persistent challenges. The report’s authors describe supply chain disruption and tariff-related cost pressure as structural rather than temporary, with electronics and sensor-related components among the most affected. Delays tied to ADAS parts frequently disrupt repair sequencing, particularly when calibrations cannot be completed until final installation.
Electric and hybrid vehicles continue to add upward pressure on repair costs. The authors say these vehicles generally require higher average repair spend than internal combustion vehicles due to battery-related precautions, specialized procedures and expanded diagnostic requirements. As adoption increases, those cost dynamics are affecting a growing share of claims.
The report also finds total loss frequency continues to rise as repair severity increases. Fewer vehicles are being repaired, but those that are repaired require more documentation, planning and process discipline than in previous years.
The authors conclude that collision repair operations are being forced to adapt to vehicles that no longer tolerate shortcuts. Diagnostics, calibrations and upfront repair planning are increasingly core business functions rather than optional steps as vehicle technology and regulatory expectations continue to evolve.
