Record Repair Costs Explained: What's Really Driving Up Your Claim

The numbers are stark: UK insurers paid out £2.1 billion in vehicle repair costs during Q2 2025 alone, according to the latest data from the Association of British Insurers (ABI). With total motor insurance claims maintaining record-breaking levels quarter after quarter, fleet operators and insurance brokers alike are asking the same question: what's really driving these escalating costs?

Understanding the factors behind rising repair bills isn't just about managing expectations—it's about identifying where smart processes and expertise can make a tangible difference to your bottom line.

The Four Key Cost Drivers

1. Vehicle Technology Complexity

Modern vehicles are technological powerhouses. Recent industry research reveals that wiring looms now feature in 99% of crash repairs—a clear indicator of how integrated systems have become. Advanced Driver Assistance Systems (ADAS), parking sensors, adaptive cruise control, and sophisticated safety features mean that even minor collisions require extensive recalibration work.

For fleet operators, this translates to higher repair bills per incident. What once was a straightforward bumper replacement now involves diagnostic work, sensor recalibration, and specialist technical knowledge. Electric vehicles add another layer of complexity, with studies showing EVs can cost up to 25% more to repair than conventional vehicles and take 14% longer to complete.

2. Parts and Materials Inflation

Broader economic pressures continue to impact the price of replacement parts and materials. Supply chain disruptions, increased shipping costs, and manufacturing delays have all contributed to inflated parts prices across the board.

The challenge intensifies when dealing with backorder situations or hard-to-source components. Extended wait times for parts don't just delay repairs—they compound costs through prolonged courtesy vehicle hire, storage fees, and administrative overhead. For fleets managing multiple vehicles, these delays can significantly impact operational capacity.

3. The Skills Shortage Crisis

The UK faces a critical shortage of qualified vehicle repair technicians, particularly those trained to work on modern vehicle technologies. According to the Institute of the Motor Industry, only 22% of UK technicians are qualified to work safely on electric vehicles, while just 2% hold formal ADAS qualifications.

This skills gap creates bottlenecks in the repair process. Fewer qualified technicians mean longer waiting times, increased labour costs, and potential quality issues when repairs are attempted without adequate expertise. The shortage is particularly acute in certain regions, making consistent service standards difficult to maintain.

4. Extended Cycle Times

The combination of complex repairs, parts delays, and capacity constraints has led to significantly longer repair cycle times across the industry. Extended repair durations mean increased costs in several areas: prolonged courtesy vehicle hire, higher storage fees, additional administrative handling, and reduced fleet availability.

For fleet managers, every additional day a vehicle spends off the road represents lost productivity and operational inefficiency. For brokers, extended cycle times mean more client touchpoints and potential dissatisfaction.

The Cost of Getting It Wrong

Beyond the headline repair costs, inaccurate initial assessments can trigger a cascade of additional expenses. Underestimated damage leads to supplementary claims and repeated workshop visits. Overestimated repairs result in unnecessary replacements and inflated invoices. Poor repairer selection can mean substandard work requiring rectification.

Each of these scenarios increases the total cost of the claim while eroding client confidence and satisfaction—critical concerns for both fleet operators monitoring their budgets and brokers protecting their client relationships.

How Artura Addresses Each Challenge

At Artura, we've built our service specifically to combat these cost drivers through three core capabilities:

BSI Accredited Estimating and Engineering Excellence

Our in-house estimating and engineering departments hold BSI accreditation—the only such operation in the UK. This means every repair assessment is conducted to the highest industry standards, ensuring accuracy from the outset. Complex technology repairs are properly scoped, damage is comprehensively assessed, and repair methods are optimised for both quality and cost-effectiveness.

Accurate initial estimates eliminate the costly cycle of supplementary claims and repeated assessments. For fleet managers, this means predictable costs and reliable budgeting. For brokers, it means fewer complications and smoother claims experiences for your clients.

A Nationwide Network of Approved Repairers

We've carefully built a nationwide network of manufacturer-approved and BSI-approved independent repairers. Each has been vetted for their technical capabilities, equipment standards, and service quality. This selective approach ensures that regardless of where your vehicle is located, it reaches a repairer with the specific expertise needed for modern vehicle technology.

Our network approach also provides geographic coverage and capacity management, reducing wait times and keeping your vehicles moving. We match each repair to the most appropriate facility based on the vehicle type, damage complexity, and location—ensuring optimal outcomes.

Specialist Parts Procurement

Our in-house parts specialists focus specifically on sourcing backorder and hard-to-find components. When standard supply chains fail, our team's industry connections and sourcing expertise keep repairs progressing. This proactive approach minimises delays, reduces courtesy vehicle costs, and gets your vehicles back in service faster.

For fleet operators managing diverse vehicle types—particularly those with older models or specialist vehicles—this capability can be the difference between a week off the road and a month.

The Bottom Line

Record repair costs are a reality of today's automotive landscape, driven by factors largely beyond any single organisation's control. However, the impact of these costs on your operation or your clients' satisfaction isn't predetermined.

The key lies in working with partners who combine technical excellence with process efficiency. Accurate assessments prevent cost overruns. Expert repairer selection ensures quality outcomes. Proactive parts sourcing eliminates delays. Together, these capabilities don't just manage rising costs—they actively combat them.

For fleet operators, this means better budget predictability, reduced downtime, and lower total cost of ownership. For brokers, it means delivering exceptional service to your clients while maintaining confidence in the repair process from first notification to final invoice.

Ready to take control of your repair costs?

Whether you're managing a fleet or looking for a trusted repair partner for your clients, Artura combines BSI-accredited expertise with a nationwide network and specialist capabilities.

Contact us today to discuss how we can help optimize your vehicle repair management.

Setting the Standard in vehicle repair management.

Source: Association of British Insurers (ABI) Q2 2025 data