Tuesday, 16 September 2014

Audatex data shows preference for repair

Bodyshops go for insurer repair incentives, as average parts prices rise by 25%

New data from Audatex, the global claims solution provider, reveals the real cost of repairs versus replacement parts for the vehicle bodyshop industry. According to Audatex figures, the number of parts being replaced per job has fallen by nearly 24% over the last five years, as bodyshops choose to repair parts instead.

Conversely, the average price of an individual part has risen by 25% over the same period, from £60 to over £75. However, despite increases in parts prices, the overall parts costs per repair job have risen by only four per cent in the same time.

‘Insurers have implemented ‘Repair vs Replace’ programmes, incentivising their repair networks to encourage bodyshops to repair more parts than they replace,’ explained Paul Sykes, managing director of Audatex. ‘In addition, new repair tools and techniques have been introduced, making it easier to repair parts and our data reflects this.’

When it comes to the ‘Repair vs Replace’ equation, Audatex highlights the benefits of opting to repair. Cycle times are reduced for bodyshops, by eliminating the time spent waiting for parts orders and deliveries. Overall repair costs are reduced for insurers and they benefit from fewer total loss cases.

Paul Sykes concluded, ‘Audatex’s estimating system supports insurer repair initiatives, helping bodyshops and insurers benefit. However, repair decisions need to be supported by guidance on quality standards and the specifics of each repair.’