Hybrid Repair Costs May Be Coming Down

A new study released by Audatex shows that in 2008, a Toyota Prius cost 8.4% more to repair than a highly fuel-efficient gasoline-powered vehicle with similar damage. The report also concluded that hybrid versions with gasoline counterparts were less than 4 percent more expensive to repair.

According to the report, on average, the Toyota Prius' repair cost is higher, but when the data are isolated to individual model years, (2007 and 2008), the cost differential for repair of a 2007 or 2008 Prius is no different than the cost of a highly efficient gas-powered automobile. The largest repair differential is seen in the 2006 Toyota Prius.

It's difficult to conclude expressly that the repair cost of the Prius is dropping, relative to other vehicles, since the Audatex data show that two-thirds of the Prius claims in 2008 involved vehicles in the 2006-2008 model years, compared to just 44% of gasoline-powered vehicles that had insurance claims in 2008.

One reason that the cost of repairing a Prius in 2007 and 2008 is dropping may be that the number of Priuses sold in the US has increased substantially since 2006. The higher production volumes make the cost of producing replacement parts in volume lower. In fact, the study shows that large increases in the cost of repairs can be attributed to frequent design changes that aim to reduce vehicle weight or improve the performance of the hybrid drive train.

Parts that are specially adapted for hybrids can come with a premium. Changes in the appearance of the vehicle – even minor ones – can add a substantial premium to the cost of a cosmetic repair because replacement parts for vehicle redesigns have not yet achieved price breaks from high volume production.

Sheet metal work on hybrid vehicles takes longer than on conventional gasoline powered vehicles, and labor rates for that service are slightly higher. This is explained in part by the distribution of hybrid vehicles around the country. Along the East and West coasts, labor rates are higher because the cost of living is higher. In areas where hybrid distribution is low, the cost of skilled labor needed to work on hybrids can be attributed to relative scarcity.

Audatex notes that the vast majority of insurance claims are for crash damage repairs, rather than mechanical failures, and Toyota noted that no Prius battery packs have been replaced due to malfunction or age-related deterioration.