Mechanic repairing a car. Credit: chartphoto/Adobe Stock As it stands, nearly 80% of collision repair shops in the U.S. are scheduling vehicle repairs out two weeks or more, according to CCC Intelligent Solutions, Inc. However, supply chain snarls limiting the availability of parts is only part of the problem. As with other industries, repair shops are struggling to attract and retain workers. (Credit: chartphoto/Adobe Stock)

Rising repair costs coupled with a labor and skills shortage are driving up claims costs for auto insurers, according to RSM, which reported prices to repair vehicles increased nearly 5% during March 2022. This is more than double the average of 2.3% that was seen from 2016-2019.

CCC Intelligent Solutions, Inc. reported that rising prices for replacement parts have accounted for more than half of the increase in average repair costs during the past five years. Additionally, the average number of replacement parts need per claim has grown steadily, from 8.4 parts per claim in 2011 to 12.6 per claim in 2021.

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Steve Hallo

Steve Hallo is managing editor of He can be reached at [email protected].  

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