The Cost of Collision Repairs: A State-by-State Comparison
When it comes to car insurance rates, most people are aware that their location plays a significant role. However, what many might not realize is that the state they reside in can also greatly impact the cost of collision repairs. A recent study conducted by the Dolman Law Group has shed light on this issue, revealing significant disparities in repair costs across different states.
According to the study, Rhode Island tops the list as the most expensive state for collision repairs, with drivers paying an average of $1,987 per capita. This amount is nearly five times higher than what drivers in Hawaii, the cheapest state for repairs, have to pay. The findings go on to highlight the 10 most expensive states for collision repairs, including Georgia, Connecticut, New Jersey, Delaware, Tennessee, Wyoming, Louisiana, Maine, and Kentucky.
So why are repair costs so exorbitant in Rhode Island? One contributing factor is the state’s low percentage of licensed drivers. With just 68.8 percent of the population holding a driver’s license, the per capita repair costs naturally increase. In contrast, states with higher license percentages can distribute the repair costs among a larger portion of the population. It is worth noting that despite its high repair costs, Rhode Island has the lowest fatality rate among all the states included in the study.
Another factor that may further drive up repair costs in Rhode Island is a recent bill passed by lawmakers. This legislation extends the age of vehicles for which insurers can refuse to pay for non-OEM (Original Equipment Manufacturer) parts during repairs. Insurers can now decline to cover non-OEM parts on cars up to 72 months old. This change in policy is likely to result in increased expenses for repairs in the state.
On the other end of the spectrum, there are several states where average repair costs fall well below the $1,000 mark. Hawaii, the cheapest state for repairs, has an average cost of just $410. Pennsylvania, Oregon, Minnesota, California, Virginia, Idaho, West Virginia, Arizona, and Washington complete the list of states with the lowest repair costs.
It is interesting to note that a similar topic was covered earlier this year by Autoblog, where data from RepairPal was utilized. In their study, California was ranked as the most expensive state for collision repairs, while West Virginia emerged as the least expensive. The Dolman Law Group’s analysis, on the other hand, takes into account factors such as the number of licensed drivers, the financial impact of crashes, and the number of fatal accidents in each state to compile their list.
These findings emphasize the importance of location when considering the overall cost of owning a vehicle. Drivers in high-cost states like Rhode Island should be aware of the potential financial burden they may face in the event of a collision. On the other hand, residents of low-cost states can enjoy the benefit of more affordable repairs. Understanding these regional differences can inform drivers’ decisions when it comes to choosing insurance coverage and managing their finances effectively.
