How advanced car features are driving up insurance premiums

What is ADAS and why is it everywhere now?

ADAS is a collection of technologies designed to prevent accidents or reduce their severity. Once only available on luxury vehicles, these systems are now common even in mid-range and economy models. Some of the most widely used features include:

• Automatic emergency braking (AEB)
• Lane departure warning and lane keeping assist
• Blind spot monitoring
• Adaptive cruise control
• Forward collision warning

The market is growing quickly. The global ADAS market is projected to reach $67 billion by 2025. By 2029, AEB will be required on all new U.S. vehicles.

Car insurance in 2025: what you’re really paying

Auto insurance rates have risen sharply in recent years. After outsized increases in 2023–24, motor‑vehicle insurance inflation moderated in 2025. As of July 2025, BLS shows the motor‑vehicle insurance index up 5.3% year over year, vs. much larger increases in 2023–2024 (11.3%).

Premiums vary widely by state due to differences in crash/litigation environments, medical costs, repair costs, weather risk, and insurance regulation.

Even as crash risks decline with ADAS, drivers are paying more. The reason? Repairs are getting more expensive.

How ADAS makes car repairs dramatically more expensive

ADAS depends on complex hardware like sensors, cameras, radar, and control units placed in sensitive parts of the car, such as windshields, bumpers, and side mirrors. When damaged, these parts are costly to repair or replace.

Examples include:

• A minor front-end collision adds an average of $1,540 in repair costs for an ADAS-equipped vehicle
• Windshield replacements on ADAS vehicles cost around $1,500, about three times higher than standard replacements
• Calibration is essential to ensure sensors function correctly. Even a one-degree misalignment can cause a 66-inch error at 100 yards
• Systems like AEB may cost only $70 to $316 upfront, but can cost thousands after an accident
  Lane departure systems can cost up to $5,300 to repair due to sensor and camera recalibrations

Breaking down the most expensive ADAS features

Automatic emergency braking (AEB):

• Can reduce rear-end crashes by up to 50%
• Often paired with forward collision warning
• Frontal sensors and cameras are easily damaged
• Even small impacts lead to high repair bills

Lane keeping assist and departure warning:

• Uses a combination of cameras and sensors to detect lane lines
• Performance drops in poor weather or visibility
• Any misalignment requires exact recalibration

Blind spot monitoring:

• Relies on radar sensors in the side mirrors
• Repairs include sensor replacement and recalibration
• Side mirrors with radar can cost thousands to replace

How insurance companies are responding to ADAS

Some carriers offer discounts for proven safety features or for opting into telematics programs, but eligibility and savings vary by state and company. Ask your insurer what’s available in your ZIP code.

Why aren’t discounts higher?

Many insurance companies are still waiting for long-term claims data before offering deeper discounts. According to LexisNexis Risk Solutions, ADAS reduces the cost of accidents but not enough to offset repair expenses, at least not yet.

ADAS vs. non-ADAS cost comparison

[ Front-end collision repair ]

• ADAS vehicle: $4,721
• Non-ADAS vehicle: $3,180

Windshield replacement

• ADAS vehicle: $1,500
• Non-ADAS vehicle: $500

Headlight replacement

• ADAS vehicle: Up to $2,000 (adaptive)
• Non-ADAS vehicle: $200 (halogen)

Calibration needed

• ADAS vehicle: Yes (dynamic or static)
• Non-ADAS vehicle: Rarely

Even though these vehicles are involved in fewer crashes, the repair costs can be more than twice as high.

Tips for consumers: how to keep premiums in check

Before buying a new car

• Get insurance quotes for vehicles with ADAS
• Ask if the features qualify for discounts
• Factor in long-term repair costs
• Choose models supported by strong repair networks

If you already own an ADAS-equipped vehicle

• Use certified repair shops that specialize in ADAS
• Keep cameras and sensors clean and properly aligned
• Compare insurance rates yearly
• Ask about telematics or bundle discounts

When getting repairs

• Make sure recalibration is included in your estimate
• Compare dealership and independent shop pricing
• Ask for itemized invoices
• Inquire about repair payment plans

What the future holds

Standardization is coming

By 2029, AEB will be required on all new vehicles, which could lead to more predictable repair and insurance pricing.

More usage-based insurance

Insurers are increasingly using telematics to track how often and how well drivers use ADAS features.

Smarter tech may lower costs

Emerging improvements include:

• Modular, easier-to-replace sensors
• Self-calibrating systems
• Remote diagnostics via the cloud

But in the short term, ADAS will remain a key factor influencing premiums.

Bottom line: don’t get blindsided by “safety inflation”

ADAS has fundamentally changed car design and insurance pricing. While these technologies are making driving safer, they also introduce new costs related to repairs and recalibration.

To protect your budget:

• Do your homework before buying a vehicle
• Keep your ADAS systems well maintained
• Understand how your insurer handles ADAS-related claims
• Shop around to find policies that align with your car's technology

Understanding the new world of ADAS is no longer just about staying safe, it’s also about making smart financial decisions. As vehicles get more advanced, so should the way drivers think about insurance.

This story was produced by CheapInsurance.com and reviewed and distributed by Stacker.