ADAS calibration can make a windshield or collision repair more expensive, but that does not mean driver-assistance technology automatically raises insurance premiums. Current insurance research shows both effects: sensors add repair steps when a claim occurs, while crash-avoidance systems reduce the number of claims and can lower total insured losses.
For this article, our team reviewed the Insurance Institute for Highway Safety’s current analysis of claim frequency, severity and overall losses, its research on post-repair calibration problems, and Transport Canada’s back-up camera guidance.
Keep reading to see when calibration is needed and how the cost can affect an insurance claim.
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What Is ADAS Calibration?
Advanced driver-assistance systems, or ADAS, use cameras, radar and other sensors for features such as automatic emergency braking, lane support, blind-spot alerts and parking assistance. Calibration aligns a sensor and confirms that the system is reading the road as the manufacturer intended.
A vehicle may need calibration after a sensor is removed or replaced, a windshield with a forward camera is replaced, body dimensions change during collision repair, wheel alignment affects a system reference point, or a warning or diagnostic code identifies a problem. The manufacturer’s repair procedure for the exact vehicle determines the required steps.
Why Is ADAS Driving Up Collision Repair Costs?
Repairing ADAS after a collision involves more than simply replacing parts. Sensors, cameras and other components also need to be calibrated to ensure these systems function properly. Sensor calibration is a specialized skill that is in increasingly high demand as these systems become more widespread.
According to U.S. data published by CCC Intelligent Solutions, just 0.9% of repairable insurance appraisals included calibration in 2017. That share increased to more than 23% by 2025, while 33% of direct repair program appraisals included calibration.
Many repair shops still lack the specialized tools, software and trained technicians required to complete these repairs. This means ADAS claims involving calibration are often outsourced to automaker dealerships or third-party vendors. As a result, calibration fees have nearly doubled over the past five years and now average about US$500 per repairable vehicle in the CCC data.
Less than 45% of calibrations appeared on the initial repair estimate. This can increase claim costs through added labour and delayed repairs, which may also add to rental car costs.
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What Does This Mean for Insurance Premiums?
As MyChoice COO Matt Roberts explains, “ADAS is fundamentally changing the economics of a car insurance claim. What used to be a simple repair is now a highly technical process involving sensors, software, and calibration. The challenge for insurers is that these costs are not only rising, but they’re also becoming less predictable, which ultimately puts upward pressure on premiums for drivers.”
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