Posted on Friday, September 5, 2025
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by Outside Contributor
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Sponsored By: Mercury Protect
Hello AMAC Members,
As a fellow vehicle owner and the General Manager of Mercury Mechanical Protection, a company with over 50 years of experience in the vehicle service contract industry, I’m here to address a concern that’s likely already on your mind: the escalating cost of car repairs. In my 41st year in this business, I can confidently say that the current situation is unprecedented.
The last six years have been the most challenging our industry has ever faced! Repair costs are out of control! In 2019, the average claim for Mercury Mechanical Protection was just under $1,000. Today, that number has nearly DOUBLED! We now see claims averaging almost $2,000.
Costs Are Driven up Due to the Amount of Tech in the New Cars.
The issue is no longer just about major repairs or supply chain disruptions. A significant driver of these escalating costs is the increasing complexity of modern vehicles. While these vehicles are safer than ever, they are essentially rolling computers packed with an array of sensors, cameras, and software. This high-tech nature makes even minor repairs a significant expense.
The failure of a radar sensor will disable the vehicle’s cruise control system, and a failed front-facing camera can disable the lane keep assist, traffic recognition, and auto–high beam control. In some cases, these replacement components require special calibration, which adds to the repair cost.
The Modern Vehicle: Electronics? Can be up to 40% of the Vehicle Price
This new reality requires mechanics to have specialized training and access to expensive diagnostic tools, all of which contribute to higher labor costs. In an industry already facing a critical shortage of qualified technicians, the need for these advanced skills is driving up costs across the board. These additional costs are why a Vehicle Service Contract is no longer just a good idea; it’s an absolute necessity!
It’s the single best way to protect yourself from these massive, unexpected expenses. To make this protection accessible for everyone, we’ve created Mercury Protect. This monthly payment plan is designed to fit your budget without draining your savings. You deserve peace of mind while driving! Please take a moment to consider how a Vehicle Service Contract can protect you and your family. We are committed to finding solutions that work for you, our valued AMAC members. You are not alone! Read: Our Claims Experience
By Jim Donaldson, General Manager of Mercury Mechanical Protection
Read the full article here