Q3 2024 Edition Examines Rising Repair Costs, Growing Impact of EVs, Vehicle Complexity and Insights for Navigating the Challenges Ahead
CCC Intelligent Solutions Inc. (CCC), a leading cloud platform powering the P&C insurance economy, today published its Crash Course Q3 2024 Report, identifying the key trends that will shape the auto claims and collision repair industry in 2025. The report examines pressing challenges such as the impact of inflation and labor shortages, the growing impact of electric vehicles (EVs) and rising repair costs, while also offering insights to help insurers and repairers successfully navigate the complexities of the year ahead.
Crash Course is based on information derived from 300 million claims-related transactions and millions of bodily injury and personal injury protection (PIP) /medical payments (MedPay) casualty claims processed by CCC customers using the company's solutions.
“2025 will present unique challenges and opportunities for the auto claims and repair industries,” said Kyle Krumlauf, director of industry analytics at CCC and co-author of Crash Course. “From rising repair costs and labor shortages to the growing complexity of vehicles and supply chain disruptions, staying ahead of these trends is critical to the industry’s viability. Our Q3 report provides key insights and strategies the industry can use to overcome these challenges and succeed in an increasingly competitive market."
Key findings of Crash Course Q3 2024 include:
- Rising Repair Costs and Vehicle Complexity: The total cost of repair (TCOR) increased by 3.7% in the first half of 2024 compared to the same period in 2023, driven primarily by labor and parts costs. Labor rates rose by 4.9% year-over-year, placing additional financial strain on repair shops and insurers. The growing complexity of vehicles, particularly with the increased adoption of EVs, is resulting in more parts and labor hours per repair.
- Electric Vehicles (EVs): EVs now represent 2.4% of all repairable claims in the first half of 2024, up from 1.6% in the same period in 2023. However, EV repairs remain more expensive than non-EVs, with the average repair cost for an EV 46.9% higher than that of a non-EV. Labor accounts for 43.3% of total EV repair costs in vehicles three years or newer, compared to 36.5% for non-EVs.
- Inflation and Casualty Costs: Persistent inflation is continuing to drive up industry costs, particularly in casualty claims. Third-party medical bill line severity has risen by 5.4% and first-party medical bill line severity has increased 6.1% since the first half of 2023. Uninsured and underinsured motorist injury claim submissions have also increased significantly along with insurance premiums for consumers.
- Total Loss Frequency: CCC data reveals a 1.8% year-over-year increase in vehicles flagged by carriers as total losses in 2024, primarily due to the continued erosion of used vehicle values and a maturing vehicle pool. 73% of valuations are for vehicles seven years or older, reflecting the aging nature of the U.S. car fleet.
Previously published annually, Crash Course is being released quarterly in 2024 to provide more frequent updates on key trends and insights. The Q3 2024 report is the 31st edition of Crash Course and part of CCC's ongoing commitment to advancing industry knowledge and helping its customers turn data into confident action and crucial moments into intelligent experiences.
Download the full report at cccis.com/reports/crash-course-2024.
About CCC
CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading cloud platform for the multi-trillion-dollar P&C insurance economy, creating intelligent experiences for insurers, repairers, automakers, part suppliers, and more. The CCC Intelligent Experience (IX) Cloud™ platform, powered by proven AI and an innovative event-based architecture, connects more than 35,000 businesses to power customized applications and platforms for optimal outcomes and personalized experiences that just work. Through purposeful innovation and the strength of its connections, CCC technologies empower the people and industry relied upon to keep lives moving forward when it matters most. Learn more about CCC at www.cccis.com.
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