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Rising Repair Costs Make Timely Claims More Important Than Ever
As repair costs continue to climb, reporting claims as soon as damage is discovered is more important than ever. Auto claim severity, the average cost of a claim once a loss occurs, has increased substantially due to higher vehicle values, advanced technology, rising labor rates, and more expensive replacement parts. Even minor damage can result in significant repair expenses.
Several factors continue to drive higher claim costs, including:
- Higher vehicle values
- Increased labor rates at repair facilities
- More expensive parts and materials
- Advanced safety features, cameras, sensors, and driver assistance systems that require specialized repairs
- Longer repair times and increased rental vehicle expenses
For lenders, early claim reporting helps protect the value of the collateral and may reduce the risk of unresolved vehicle damage. It also helps ensure borrowers receive assistance sooner, leading to a smoother claims experience and faster vehicle recovery.
Bottom Line: Encouraging borrowers to report damage and file claims promptly can help control costs, protect collateral, and support better outcomes for everyone involved. The sooner a claim is reported, the sooner the recovery process can begin.
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President
ISI
tmaccurdy@isicpi.com
704-957-5024
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ISI is an administrator of Collateral Protection Insurance (CPI) and Blanket Lenders Single Interest (BLSI) for financial institutions. We provide insurance, lending, and marketing products to the financial institution marketplace. Our mission is to deliver the best products and services in the industry through responsive service, comprehensive coverage, and advanced technology. We combine the lender's vision and our proven plan to create a portfolio that matches the lender's needs for a successful program and partnership.
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