- Insurance-related repair expenditure rises by 4% in the first half of 2019
- New vehicle technologies accelerate accident related parts prices
- Repair levels forecast to decrease slightly in 2019
The UK’s most comprehensive report on the UK Car Body Repair Market, originally released in January 2019 by independent research company Trend Tracker, has recently published an update.
Analysis of the data shows the average repair cost trend for cars is continuing to rise in the first half of the year to a weighted average of £1,919 from £1,845 per repair recorded in 2018. This represents a 4% overall increase in insurance related accident repair expenditure, for all makes/models of cars, for the first half of the year.
Looking at the longer term average repair cost trend for cars, the overall average cost repair has risen quite significantly; from a weighted average of £1366 in 2013 to £1919 for the first half of 2019 (a 40.5%, or £553, increase over the period).
Parts make-up approximately 42% of a total average accident repair cost; a figure that has remained fairly consistent for the past six-years, which means that in the first half of 2019, the average parts spend on car repairs was £803, compared to £787 in 2018 and £721 in 2017. The cost trend continues upwards!
“Working with one of our primary partners, Solera Audatex, we have analysed the latest repair cost data, both annually and over a six-year period. The data clearly demonstrates that vehicle design and build complexity, including advanced automotive engineering technology system integration, has resulted in higher accident related parts cost increases and additional labour time being required to return a vehicle back to the road safely, leading to higher costs” says Mark Bull, Trend Tracker’s director and research analyst.
Whilst car accident repair costs increase, motor claims frequency is expected to fall slightly in 2019. The rate at which policyholders are claiming against their motor policy has continued its long term decline, reaching the lowest level on record in the second quarter of 2019, at 11.4%.