Auto insurance claimants are waiting longer for collision repairs

According to a report by Enterprise Rent-a-Car on Friday, auto insurance claimants are waiting longer for collision repairs — 4.5 days longer this spring compared to the same time last year.

Enterprise extrapolated repair times by tracking the average length of collision replacement rentals made on behalf of auto policyholders. The average was 17.7 days during the second quarter of 2002, compared to 18.2 days for the second quarter of last year.

While the length of rental periods ranged from 13.1 days in Hawaii to 22.1 days in Alaska, every region of the country experienced longer wait times for repairs. Enterprise said only Hawaii, Iowa and Nebraska saw increases of less than three days over last year’s average times.

The report indicates that several factors lead to longer repair times, including parts availability and delays, personnel, backlogs and processes.

CCC Intelligent Solutions, a claims technology provider, noted a similar trend in an updated July 18 report. CCC said the average repair time for insurers’ direct repair programs was 15.5 days for the first six months of this year, compared to 11.3 days for the same period last year and 9.5 days for the first half of 2020.

Source: Company

The CCC report shows that the share of repairs made by direct repair program shops costing more than $5,000 rose to 20% in 2020, from around 17% in 2017.

“As repair costs increase, repair times increase, so the industry as a whole has seen an increase in repair cycle times not only due to some of the delays described in the Enterprise report, but also because more repairs are in the higher dollar repair brackets where repair times are longer,” Gotsch said in an email.

CCC data shows that the average wait time for repairs costing more than $10,000 was 37 days in 2021, compared to 30.3 days in 2020. Even repairs costing less than $500 took longer: 3.2 days in 2021 compared to 2.9 days in 2020.

Gotsch said that due to supply chain issues, repair shops worked to ensure they had all the parts they deemed necessary for repairs before asking the customer to bring. the vehicle to the workshop. She said this is especially true for drive-by vehicles, because if there is a backlog of parts after a teardown begins, the repair process essentially turns a drive-by vehicle into a non-drive-by vehicle.

“For non-rolling vehicles, many are towed from shops, so rental starts much earlier – and with less congested roads and higher used vehicle prices, there has been an increase in non-rolling vehicles” , Gotsch said. “Non-driving vehicles have much longer repair times, so an increase in non-driving will increase repair times across the board.”

According to Enterprise’s report, Mitchell International of Enlyte observed that a greater percentage of collision repairs were performed on luxury vehicles, 12.9% in the second quarter of 2022, compared to 10.3% in the same period last year.

Battery electric vehicles also increased to 0.83% of vehicles from 0.63% last year, reported Ryan Mandell, director of claims performance for Mitchell. “BEVs have longer key-to-key cycle times of 1.3 days on average.

Mandell also noted that overall claims involving a catalytic converter increased to 3.5% of collision repairs in the second quarter of 2022, from 1.9% in the same period last year. “Thefts of catalytic converters are mainly due to rising prices for rare earth metals, which have only been exacerbated by the Ukraine-Russia conflict,” he said.

Greg Horn, chief innovation officer at PartsTrader, told Enterprise that OEM parts delivery time actually improved in Q2 2022 compared to Q1.

“The availability of new OEM parts is still causing a lot of delays, but the good news is that there are fewer brands that are experiencing big delays,” Horn said, according to the report.

The Enterprise reports that average rental lengths fell from 18.2 days in the first quarter of 2022 to 17.7 days in the second quarter.

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