Non-Drivable
For rentals associated with non-drivable claims, LOR was 27.1 days in Q4 2022, a 2.8-day increase from Q4 2021 (24.3), but almost static compared to Q3 2022 (up 0.1 day).
Louisiana had the highest non-drivable LOR at 33.2 days, a 3.7-day increase from Q4 2021. An additional nine states all had non-drivable LOR higher than 30 days, followed by eight more states with LOR above 29 days.
South Dakota (30.6) saw the highest increase, with LOR jumping eight days higher than Q4 2021 (22.6). Alaska, Colorado, Maine, Montana and Washington saw non-drive increases greater than five days.
On the other end, Iowa and New York had the lowest non-drivable LOR at 23.0 days each, followed by Washington, D.C., at 23.4. California, Hawaii, Massachusetts, New Jersey and Virginia had LORs under 25 days.
Hawaii recorded the only decrease from the previous year’s quarter with results down 0.7 days.
Yoswick offered additional insights into the repair backlog.
“Parts issues, workforce challenges and more harder-hit vehicles are also showing up in another increase in late 2022 in how many jobs shops say they have in process relative to their typical workload,” he said. “The 300+ shops responding to a CRASH Network survey in December had an average car count of 79 jobs per month and reported currently having 61 jobs in process, or the equivalent of 77% of their typical monthly volume. That level of work-in-progress (WIP) is up from 64% three months earlier.
“It may not be surprising to see WIP rising even further in the fourth quarter, typically the busiest in many regions of the country, but most shops are still citing a lack of technicians and parts delays as the chief causes for the backlog of work,” added Yoswick. “Some shops also noted a higher than usual number of non-drivable repairs gumming up the works.”
“Non-drives are preventing regular scheduling, delaying repairs,” said the manager of a smaller independent shop in Pennsylvania responding to CRASH Network’s survey. “The last three out were each between $9,000 and $20,000 in damage.”
Regarding increases in non-drivable repairs, Mandell added: “Air bag deployments have reached the highest number ever recorded at 1.26%, up from 1.11% in Q4 2021.”
Total Loss
LOR with totals was 18.2 days, a comparatively modest increase of 0.6 days from Q4 2021, and up 0.4 days from Q3 2022.
Hawaii, which saw some good results in other channels, had the highest total loss LOR at 24.6 days, an increase of 4.3 days---also the highest. The next highest were Oregon (21.4) and North Carolina (21.0). Minnesota saw a large increase as well, jumping 3.4 days, followed by Ohio with a 3.0-day increase.
On the other end, North Dakota saw a LOR of 14.9 days, followed by Vermont and Wisconsin at 15.9 days each. Seven additional states saw total loss LOR below 17 days.
Twelve states, plus Washington, D.C., had decreases in total loss LOR compared to Q4 2021, led by Vermont (-2.4), Delaware (-1.4) and Rhode Island (-1.0).
“Total Loss frequency rose sharply in Q4 2022 to 18.2%---up from 17.9% in Q4 2021 and 16% in Q3 2022,” Mandell said. “A portion of this increase can be attributed to Hurricane Ian, which resulted in Total Loss frequency in Florida in Q4 2022 reaching 27.2%, up from 16.4% in Q4 2021 and 15.9% in Q3 2022.”
Summary
While Q4 2022 continued with the return of historical trending, the results themselves continue to be exacerbated by supply chain disruptions, parts delays, collision repair backlogs, and technician shortages.
With the complexity of vehicle repairs only increasing, for both internal combustion engine (ICE) and battery electric vehicles (BEV) models, the entire industry must play a part in ensuring all collision-related businesses are aligned---not just for procedural solutions, but to ensure our mutual customers receive safe and proper repairs, an excellent experience and peace of mind.
Enterprise is committed to partnering with insurers, repairers, and suppliers on each one of these issues. Through foundational support provided by the Enterprise Holdings Foundation, Enterprise is spearheading the Collision Engineering Program, designed to attract and develop entry-level talent to fill essential roles within the collision repair industry. Enterprise is thrilled to expand its longtime partnership with Ford Motor Company, through its philanthropic arm, the Ford Fund, to expand the program and help address this ongoing industry challenge.
For more information, visit www.beacollisionengineer.com.
Source: Enterprise
Abby Andrews