A spokesperson from SBI General Insurance, a general insurer, said the true cost of a car accident often becomes clear only after a detailed inspection.
The company noted that what may initially appear as minor damage can escalate significantly once repairs begin, as modern vehicles often require replacement of interconnected parts, sensors and electronic systems. It added that beyond repair expenses, customers may also incur additional costs such as alternate transportation during repairs, while medical expenses in injury cases further add to the overall financial impact.
The insurer said while comprehensive motor insurance can significantly reduce the burden on customers, out-of-pocket expenses still arise in many cases due to deductibles, depreciation and exclusions. It pointed to add-on covers such as zero depreciation, engine protection, consumables cover, tyre protection, return to invoice and roadside assistance, which help reduce the customer’s share of expenses during a claim.
From a claims perspective, ICICI Lombard General Insurance, represented by Gaurav Arora, Chief Commercial Lines & Motor (Underwriting & Claims), said average claim sizes vary widely across segments. The insurer estimates that non-premium vehicles typically see claims of around ₹35,000–40,000, while premium vehicles often record claims in the range of ₹1.5 lakh–1.8 lakh.
Arora said even in insured cases, customers usually bear a portion of costs due to depreciation, deductibles and non-covered items such as consumables. He added that rising spare part costs, increased labour charges and the growing use of advanced electronics and safety systems are contributing to higher repair costs and, in turn, higher claim values.
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He also noted that modern vehicles increasingly feature sensors, ADAS systems and integrated electronic components, which make even minor repairs more complex and expensive compared to earlier vehicle generations.
On electric vehicles (EVs), ICICI Lombard said routine maintenance costs tend to be lower than internal combustion engine (ICE) vehicles due to fewer mechanical components. However, it added that accident repair costs for EVs can be higher due to expensive battery systems, specialised electronics and limited repair infrastructure. In some cases, even moderate damage may require extensive diagnostics or component-level replacement, it said.
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A broader industry perspective was shared by Nochiketa Dixit, Managing Director – Industries at EDME Insurance Brokers, who said the actual financial impact of accidents often extends beyond visible repair costs.
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He estimated that policyholders may still absorb around 20–40% of total accident costs due to depreciation, deductibles, consumables and loss of ‘no claim bonus.’
Dixit said rising spare part prices, higher labour costs and increasing electronic content in vehicles are driving up overall claim severity. He also noted that EV-related repair costs can be higher than comparable petrol vehicles due to battery-related risks and a still-evolving repair ecosystem.
