Enlyte, the parent company of Mitchell, issued its 2024 Enlightened Trends Report, showing an 8% increase in collision repair costs from 2022 to 2023.
In early 2023, the average cost of a repairable claim in the U.S. exceeded $4,700—an increase of approximately 8% compared to the first six months of 2022.
The findings, specifically for those involved in collision repair, were presented by Ryan Mandell, director of claims performance for Mitchell. He anticipates an increase of 8% to 10% year over year for the foreseeable future.
Mandell also noted, the average deductible paid on a first-party claim jumped from $670 in early 2022 to $697 just a year later.
Over the past year, the U.S. has seen an increase in labor rates. The national average has gone from $55 to more than $59 an hour.
He advised collision repairers that leveraging technology to expedite key steps in the repair process can help boost efficiency, reduce cycle time and control expenses.
Also found in Mandell’s report:
Collision claims are on the rise: Claims volume is up by approximately 1% in early 2023 compared to early 2022. Despite more cars on the road equipped with advanced driver assistance systems (ADAS), vehicle owners are still getting into accidents.
The Impact of ADAS: Consider the case where a millimeter wave radar sensor is located behind a bumper cover. If that bumper is damaged, it could limit the repair options the technician has and to ensure that the sensor continues to function properly, many manufacturers require its replacement.
Repairability decrease: One reason for the overall decrease in repairability for this is the vehicle material choices manufacturers are currently making. Although it is possible to repair aluminum body panels, for instance, the material properties of the panel make it more likely that the collision’s crash energy created a pattern of damage that prevents a safe repair. In early 2022, 17.5% of parts on an estimate were repaired. In 2023, it was 17.1%.
The full report can be downloaded at Enlyte's website.
