The U.S. collision repair and auto claims industries have shown signs of stabilization; however, tariff impacts and other global issues affecting supply chains and costs could change that moving forward, according to CCC’s Q2 Crash Course report.

“Key performance indicators across both segments reflect improved underwriting results, easing cost pressures in some areas, while ongoing concerns around loss severity and social inflation continue,” the report states.

The average total cost of repair (TCOR) by 2024 year-end was more than $4,730, an increase of 3.7% YoY. CCC says that was the lowest increase since 2017. Through Q1, average TCOR increased 1.1% YoY, which is likely to develop further, according to the report.

Total loss frequency is trending upward, with 22.6% of all losses through April falling into that category. That also included 23.5% of non-comprehensive losses. Together, that shows a 0.9-point year-over-year increase.

CCC says contributing factors are declining used vehicle values, a shifting vehicle age mix, and lower claims volumes.

Adjusted vehicle values are down 2% YoY, averaging $13,445. Rising repair costs have been mitigated by the increased total loss frequency and vehicle age mix. Through Q1, 74% of valuations were on vehicles seven years or older.

“Repairers are adjusting to these shifts with mixed results,” the report states. “While overall claims volume remains below pre-pandemic levels, improved insurer performance has helped stabilize workstreams and provided some predictability in demand. However, margin pressure persists.

“Labor costs remain elevated amid technician shortages, and shops continue to contend with parts availability issues, especially for newer
and ADAS-equipped vehicles.”

The complexity of repairs also continues adding time and cost, with calibrations appearing on more than 31% of DRP estimates in Q1 2025, up from 23.9% a year ago. The rise in appraisals that include diagnostic operations, mostly scans and calibrations, are also an indicator of this metric, according to the report.

The share of DRP appraisals that included a scan reached nearly 87% in Q1, while calibrations trended towards 32%.

“The inclusion of calibrations is accelerating at a rate similar to what we saw with scans in recent years and implies a continued increase in repair costs,” the report states. “While nearly 92% of scans are included in the initial DRP estimates, the majority of calibrations appear on supplements.

“Shops that have invested in diagnostics, training, and process automation are better positioned to manage these pressures and maintain throughput,” the report states.

Average part prices began showing signs of inflation in Q2 2024. By March and April of this year, YoY increases were above 4%.

Industry part utilization was down slightly in 2024 at 13.6 parts per repair estimate, and further declined in Q1 2025 by around 0.4 parts per repair.

“As we enter the second half of 2025, sustained focus on repair network performance, cost containment, strategic pricing, and investments in digital technologies to improve claims management will be critical to maintaining profitability and navigating the uneven road ahead,” the report states.

Shop backlogs have continued to improve on a YoY, with the average time between the last estimate assignment sent and vehicles into the shop at almost half of the days required in Q1 2023.

Overall repair days remain down, at around two days in total from their peak, yet remain up by four to five days relative to 2020. CCC says increased supplement handling and technician shortages could be contributing to elongated repair times.

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