Nov. 1, LAS VEGAS—Repair order numbers saw historic growth in Q3, Susanna Gotsch revealed Monday during the 2021 MSO Symposium at Mandalay Bay.
Gotsch, senior director at CCC Intelligent Solutions, said CCC saw a 6.5 percent increase in repair order numbers compared to the previous quarter.
“[It’s] way way above anything I have seen historically,” Gotsch said.
Average repair costs year-to-date is more than $3000 and when taking out comprehensive losses it's closer to $3200. Gotsch doesn’t expect to see that rate of increase long term, instead forecasting about five percent year-over-year growth.
Gotsch credits the historically high increase due to a shift in driving tendencies. While claims remain down compared to 2019 numbers, the accidents are becoming more severe as distracted driving rates increase. CCC has also seen two to three percent increases in the rate of airbag deployment in accidents and in non-driveable claims, both of which increase the average repair order.
There will also continue to be more ADAS work available to shops. In 2020, 75 percent of vehicles were minimally equipped with AEB. So far, in 2021 it's about 95 percent or more, Gotsch said, adding that because driving speeds are increasing nationwide, ADAS isn’t working like it's designed.
