CCC Crash Course Report: Severe Weather Driving Up Auto Repair Costs

The auto insurance and collision repair industries face escalating challenges due to severe weather, according to CCC Intelligent Solutions’ new Crash Course Q2 2024 Report.

This edition of the report, now released quarterly instead of annually, focuses on how severe weather events, particularly hurricanes and convective storms, are impacting the auto insurance and collision repair industries, and provides updates on data, insights, and trends impacting auto claims and repairs. The data was derived from an extensive analysis of 300 million claims-related transactions.

According to the report, severe weather has expanded its geographical impact, forcing the auto insurance and repair industries to adapt to new patterns and prepare for an unpredictable future. The report showed significant increases in repair times and costs due to storm-related damages.

Specifically, hail-related auto claims rose to 11.8% of all comprehensive claims in 2023, up from 9% in 2020, with average repair costs for hail-damaged vehicles increasing by 15% over the past three years. In addition, hail claims are on average 21.7% more costly to repair than the average comprehensive claim and 25.6% costlier than the average repairable claim.

“Extreme weather events are increasing in severity, becoming major disruptors in the auto claims and repair industry,” said Kyle Krumlauf, director of industry analytics at CCC and co-author of the report. “Our Q2 report delivers critical insights, showing that the frequency and severity of storms are not just a seasonal issue but a persistent challenge that demands strategic planning and swift adaptation from industry players.”

A case study within the report provides a detailed look at Hurricane Ian’s impact in 2022, where comprehensive estimates in affected states, particularly Florida, saw nearly a sevenfold increase. This spike reflects a trend toward more severe and costly weather events.

The migration of populations to areas prone to hurricanes and hail, like Florida, Colorado and Texas, further intensifies these challenges, leading to higher volumes of claims and increased stress on repair infrastructures.

The average total cost of repair (TCOR) increased 3.3% in Q1 2024 compared to Q1 2023, with labor rates and parts costs contributing to the rise. Q1 2024 saw significant improvements in repair cycle times, with vehicles entering repair shops six days sooner compared to Q4 2023.

Electric vehicles (EVs) accounted for 2.4% of all repairable claims in early 2024, up from 1.6% the previous year. Notably, EV repairs cost an average of 46.9% more than those for non-electric vehicles, primarily due to higher labor costs.

The medical aspect of auto claims is also seeing significant shifts, with treatment costs soaring and uninsured motorist injury claims increasing by 44% from early 2023. Additionally, high turnover among adjusters is impacting subrogation efforts, leading to a 16% drop in referrals.

The full report is available for download at


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