This week in the news associated with the auto body industry, we will take a look at why the average period of time which a consumer has a rental vehicle is at its highest in five years, along with why the estimated time for a repair is not in line with insurer expectations. Check back every week for new updates about what is going on in the auto body industry around the state, country and world!
Average Rental Time Continues to Increase
In an industry trends report issued by Mitchell on Tuesday, it was reveled that the average industry length of rental continued its trend to become longer and longer. One of the subjects that the information was released on was for collision losses, which was responsible for the longest rental periods of all incidents listed in the report. On average, quarter 1 of this year saw an average length of rental (or LOR) at 11.6 days, up from 11 days during the same period in time last year.
The reason this statistic is so important is that it is generally a good indicator of what the current cycle time is from the actual incident to the time the car is returned to the owner. Also included in this report was the fact that the country’s four largest insurance carriers continue to gain ground in the automotive insurance industry. The largest, according to this report, was State Farm – which dominated with 18.52% of the current market share. It should be of no surprise that GEICO, Allstate and Progressive were also included amongst the top 4 car insurance companies in the nation.
Average Repair Time
Another study was released this week, but this time from the Society of Collision Repair Specialists or (SCRS). This study revealed that the estimated time for repair by collision specialists did not live up to expectations of insurance carriers. Data from CCC Information Services Inc. and Mitchell International was analyzed to compare with data on average length of rental from Hertz and Enterprise. From this, experts were able to conclude that the time spent on a damaged vehicle did not meet their standard of 3 hours per day (or 10 days to finish a 30 hour job). Instead, it showed that only 1.5 hours per day were spent on repairing the damaged vehicle, thus taking twice as long to complete the repair project. This report revealed a huge disparity between the expectations of repair time to the reality of how long repairs were actually taking.
At Sanford Paint and Body and Martin’s Collision Center, we always give a realistic timeframe in which we expect to complete the repairs to your vehicle. This helps to eliminate unnecessary waste and additional days that a rental vehicle is required. Our personal relationship with the local Hertz and Enterprise has been ongoing since we opened for business and we have established a great line of communication with both of them. This is one of the many reasons why Sanford Paint and Body or Martin’s Collision Center should always be your first call when it comes to auto body repair work in the Orlando or Sanford, Florida area!