Average Length of Repair Soars to 23.1 Days, But Auto Insurance Customer Satisfaction Rises

A recent survey indicates showing concern for customers' situation at the beginning of the repair process and keeping them informed go a long way.

Written by Autobody News Staff
Published Oct. 26, 2023

In 2023, the average time for auto repairs has reached a staggering 23.1 days, a significant increase of 6.2 days from the previous year and more than double the duration in 2021, according to the J.D. Power 2023 U.S. Auto Claims Satisfaction

Nevada Division of Insurance to Hold Public Forum on Auto Rates

A diverse team will give their unique perspective on the factors influencing rising rates and explore ways to confront the challenge.

Written by Autobody News Staff
Published Oct. 13, 2023

The Nevada Division of Insurance it will host a live webinar panel discussion to address questions and concerns about the rising costs of auto insurance in the state.

This event will be held virtually at 10 a.m. PT Nov. 1, and is open to the public. Interested attendees can get more details and register ...

State Farm Ends Suspension of Non-OEM Crash Parts

The ban had been in place nearly 25 years.

Written by Autobody News Staff
Published Oct. 10, 2023

State Farm on Oct. 9 informed its Select Service repair centers that as of Oct. 16, it is ending the suspension it placed on the use of “non-OEM crash parts” in 1999.

The carrier said it now recognizes certification standards developed by the Certified Automotive Parts Association (CAPA) and NSF Internationalfor parts like bumper components, lighting components, radiator supports, tie bars, mounting components and outer sheet metal made by a company other than the original automaker.

On its website, State Farm

State Farm Asks for Steering Lawsuit in Maryland to Be Dismissed

Written by Autobody News Staff
Published Oct. 3, 2023

On Sept. 27, State Farm filed a motion to dismiss the lawsuit brought against it earlier this year by Total Recon Auto Center in Rockville, MD, which claims the auto insurance giant is steering Teslacustomers away by intentionally giving its insureds false information.

A report from GlassBytes.com said in the lawsuit filed in mid-August in a U.S. District Court in Maryland, Total Recon claimed State Farm initially agrees to pay the auto body shop’s Tesla labor rate of $50 an hour, but then “steers” away its customer so they don’t have to pay out of pocket the

U.S. Auto Insurer Claim Payouts Soar Due to Increasing Inflation

Written by Autobody News Staff
PublishedSept. 29, 2023

U.S. personal and commercial auto insurer liability claim payouts combined were $96 billion to $105 billion higher between 2013 and 2022 because of social and economic inflation, according to a news release from the Insurance Information Institute (Triple-I).

“For personal auto liability insurance, increasing inflation drove loss and DCC (defense containment costs) higher by $61 billion,” according to Triple-I's study, Impact of Increasing Inflation on Personal and Commercial Auto Liability Insurance. “For the same period (2013-2022), increasing inflation drove

Florida’s Strained Insurance Industry Pulled on Again

Written by Andrew Powell, The Center Square
Published Sept. 12, 2023

Idalia's cost will be in billions and will put additional strain on Florida's insurance industry.

The Category 3 storm---winds of 111-129 mph on the Saffir-Simpson Hurricane Wind Scale---made landfall Aug. 30 near Keaton Beach in the Big Bend region of the Gulf Coast, one of the largest to hit the area in a century. Trees and powerlines were downed amid a 7-foot storm surge that flooded homes close to the coast.

A report from Moody’s Analytics released Sept. 6 stated in total, private insured losses are between $3 billion and $5 billion, while the National Flood

Farmers Insurance Laying Off 11% of Workforce, Citing Industry Challenges

Written by Ezra Amacher, Insurance Journal
Published Sept. 5, 2023

Farmers Insurance announced it will part ways with approximately 2,400 employees---11% of its workforce across all lines of business.

“Decisions like these are never easy, and we are committed to doing our best to support those impacted by these changes in the days and weeks to come,” Raul Vargas, president and CEO of Farmers Group, said in a statement Aug. 28.

The Los Angeles-based insurer said the moves are being made to better position itself for long-term profitability by creating a more streamlined organizational structure, and follow

Rate Hikes Not Bringing Profit to Auto Insurers

By Susanne Sclafane, Insurance Journal
Published Aug. 18, 2023

Jumps in rates and written premiums did little to move the needle on underwriting profits for U.S. personal auto insurers, Fitch Ratings reported based on a recent review of midyear results of nine big market players.

Profitability challenges in the auto line prompted a Fitch downgrade of the lead subsidiary of one of the insurers, Kemper, on Aug. 17, and a changed outlook for another, Horace Mann. Separately, S&P Global Ratings downgraded yet another---Allstate---earlier the same week.

In their analysis of public company GAAP filings titled,

Auto Insurance Shopping Bolstered by Increased Vehicle Sales, Search for Lower Rates

PublishedAug. 15, 2023

Auto insurance shopping rates were up 12% in Q2 2023, compared to the same time in 2022. While vehicle sales played a role in this increase, the search for lower insurance premiums was the primary driver, as the Consumer Price Index for motor vehicle insurance rose 17% in June 2023 compared to June 2022.

The findings are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which includes trends in the auto and property insurance industries, as well as survey data about consumers’ behaviors and attitudes.

Despite historically high vehicle pricing and

SCRS Airs Collision Shops’ Concerns About Insurers to Washington State Regulators

Written by John Yoswick, Autobody News
Published Aug. 8, 2023

The Washington State Office of the Insurance Commissioner (OIC) held a workshop this summer to discuss possible ways to address a record number of consumer complaints being filed with the office in recent years. This past April, for example, the regulator received 467 complaints, up more than 62% from a historic average of 287.

Aaron Schulenburg, executive director of the Society of Collision Repair

New Study Shows Disproportionate Effect of Credit Scores on Auto Insurance Rates

PublishedAug. 2, 2023

Consumer Federation of America (CFA) released a new report July 31 detailing the impact of auto insurers’ use of consumer credit information on good drivers with only fair or poor credit scores. Across the country, consumers with poor credit annually pay hundreds or even thousands of dollars more for the basic auto insurance coverage mandated by state laws.

The full report is available here.

Auto insurance must, by law, be purchased by

Car Insurance Rates Spike 17% in the First Half of 2023

PublishedJuly 27, 2023

The average annual cost of a car insurance policy surged $240 to $1,668 in the first six months of 2023, up from $1,428 in 2022. Prices will increase another 4% before the end of the year, according to Insurify’s latest auto insurance report. The report attributes these increases to insurers experiencing high losses as a result of soaring auto repair prices and the effects of climate change.

“Vehicle repair and maintenance costs have outpaced inflation and show no signs of slowing, leading insurers to increase auto insurance prices to keep up with the cost of higher claim payouts,” said Allie Feakins, Insurify’s

Insurers Claim WA State Study on Increased Claims Complaints is ‘Misplaced’

Written by TJ Martinell, The Center Square
Published July 24, 2023

Insurance advocacy groups in Washington state are pushing back against a new study released by the Office of the Insurance Commissioner highlighting the recent increase in insurance claim complaints.

According to the OIC, its Consumer Advocacy Program received 467 complaints in April 2023 compared to the average of 287 per month. As of May, claim handling issues were documented in over 80% of all complaint reasons.

In a statement, Insurance Commissioner Mike Kreidler wrote, “most of the time, the claims process works as intended when

New Study Shows ‘Uncertain Road Ahead’ for Auto Insurance Due to Inflation, Other Concerns

PublishedJuly 22, 2023

A new study, “Auto Insurance: The Uncertain Road Ahead,” released July 19 by the American Property Casualty Insurance Association (APCIA), revealed insurance claims inflation has continued to rise faster than the underlying consumer price index (CPI), far outpacing increases in auto insurance premiums. 

The combination of rapidly increasing overall economic inflation and claims inflation has driven up auto insurance losses and combined ratios.

“In addition to inflation trends, the private passenger auto insurance sector is also experiencing several other trends such as increased

Farmers Insurance Further Reducing Florida Business

Written by William Rabb, Insurance Journal
Published July 13, 2023

One month after it announced it would stop writing new homeowner policies in Florida, Farmers Insurance said it plans to cut back further on its presence in the hurricane-prone state.

The Florida Office of Insurance Regulation said July 11 it had received a “market reduction notice” from Farmers Insurance Group on July 10. But the information was marked as trade secret, per Florida insurance statutes, so details were not provided.

“We have advised the Florida Office of Insurance Regulation of our decision to discontinue offering Farmers-branded auto, home and umbrella policies

Toyota Auto Insurance Expands to Colorado, Georgia, Oregon

PublishedJuly 10, 2023

Toyota Auto Insurance, the automaker's branded insurance product, is now available to customers residing in the states of Colorado, Georgia and Oregon. 

Introduced to select markets in 2021, Toyota Auto Insurance offers customers quality, customizable coverage at affordable rates. Now, Toyota Auto Insurance customers in the Centennial State, the Peach State and the Beaver State will be able to receive an immediate upfront discount and may be able to save even more with good driver, good student or multipolicy discounts.

Toyota Auto Insurance offers consumers a quick, easy and flexible policy purchase process via

USAA Settles Georgia Class Action on Underpaid Taxes in Auto Claims

Written by Insurance Journal Staff Reports
Published July 3, 2023

A federal judge in Georgia has given preliminary approval to a $2.3 million settlement in a class-action lawsuit that charged USAA Casualty Insurance Co. with underpaying for taxes on totaled vehicles.

“The Court finds, subject to the final fairness hearing … that the settlement agreement is fundamentally fair, adequate and reasonable,” U.S. District Judge Leigh Martin May wrote in the order in June.

The final hearing has been scheduled for Dec. 13.

Some 9,000 Georgia policyholders joined the suit, one of several class actions

Maryland Auto Launches New Insurance Education Resource

PublishedJune 15, 2023

Maryland Auto has created a new resource for those exploring career opportunities in the insurance industry. Local programs are supported by reputable organizations like the Maryland Insurance Administration and the National Association of Insurance Professionals.

According to the University of Baltimore's website, the Maryland Insurance Administration has noted there is a talent gap in the insurance field, with jobs available in underwriting, marketing, human resources, technology and data analytics, and risk management.

Insurance professionals often find long-term career satisfaction. A recent article published

Washington State Official to Address Historic Increase in Auto Insurance Complaints

PublishedJune 15, 2023

Claims denied without a suitable explanation. Frustrating delays in hearing back from insurance companies. Initial app-based repair estimates coming in thousands of dollars below the final cost.

Washingtonians have been filing complaints about their auto and homeowners insurance issues at a record pace, and Insurance Commissioner Mike Kreidlerannounced June 12 he’s hosting a workshop in July to hear from consumers, insurers and other parties on the reasons for the increase.

The Office of the Insurance Commissioner has reported a historic volume of complaints since 2021. The OIC’s

Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge

PublishedJune 13, 2023

Nearly one-third (31%) of U.S. auto insurance customers say they experienced a rate increase during the past year, as the industry raises rates an average of 15.5% and insurers continue to fight the forces of record high loss ratios.

Auto insurers lost an average of 12 cents on every dollar of premium they collected in 2022---the worst performance in more than 20 years---leaving them few alternatives but to raise rates at the expense of customer satisfaction.

According to the J.D. Power 2023 U.S. Auto Insurance Study, released June 13, satisfaction with auto insurance has dropped 12 points (on a 1,000-point

One-Third of a Carrier's Business Could be at Risk Following Auto Claims Experience

PublishedJune 8, 2023

LexisNexis® Risk Solutions on June 7 announced findings from its study examining the link between auto insurance claims and customer experience and retention. 

The study is comprised of two parts: consumer feedback from more than 1,400 insureds who experienced a claim within the past 12 months, coupled with an analysis of a customer's propensity to switch auto insurance carriers post-claim. Findings have been published in the whitepaper, ...

Everyone in Collision Repair Process Plays a Part in Solving Problems with Supplements

Written by John Yoswick, Autobody News
Published June 6, 2023

Virginia shop owner Barry Dornsaid he doesn’t see “who is winning” as the time involved with processing supplements grows.

“My concern is that we all lose that trust with that customer,” Dorn said, during a panel discussion on supplements during this spring’s Collision Industry Conference (CIC). “They see a $1,000 photo estimate turn into a $20,000 blueprint. The trust is lost. The customer knows

40% of Insured Drivers Are Stressed About Affording Their Car Insurance

PublishedMay 17, 2023

With the annual inflation rate still at 5%, Americans are paying higher prices for everything---and essential financial services are no exception. In fact, an exclusive new survey reports 43% of insured drivers in the U.S. are paying more for their car insurance than they were last year at this time.

Perhaps unsurprisingly, 40% of insured drivers say they're stressed about being able to afford car insurance, a requirement for drivers in most states, adding to the broader anxiety Americans feel around the pressures on their wallets. This is especially true with many millennials and Gen Z---more than half (55%) of drivers age 18

Nearly 15% of Consumers Allow Auto Insurance Coverage to Lapse 

PublishedMay 16, 2023

Auto and property insurance shopping rates continued to rise in Q1 2023, up 7% and 10%, respectively, compared to Q1 2022. However, as shopping has increased, the number of consumers switching carriers is beginning to decrease, indicating premiums are rising among virtually all insurers.

The findings are part of TransUnion’s latest quarterly Insurance Personal Lines Trends

CCC, Verisk Partner to Prevent Auto Insurance Fraud

PublishedMay 15, 2023

CCC Intelligent Solutions Inc. and Verisk Analytics, Inc. announced May 9 a strategic partnership to leverage the two providers’ market-leading technologies to bring new innovations to P&C insurance claims. CCC is a leading cloud platform for the P&C insurance economy and Verisk is a leading global data analytics and technology provider.

The first project announced through the partnership is the planned integration of anti-fraud analytics from Verisk’s claims fraud detection solution with CCC’s claims platform. This integration will help P&C insurers fight the rising threat of fraud in auto physical damage (APD)

Toyota Auto Insurance Now Available in California

PublishedMay 10, 2023

Toyota Auto Insurance, the automaker's branded insurance product, is now available to customers residing in California.

Introduced to select markets in 2021, Toyota Auto Insurance offers customers quality, customizable coverage at affordable rates. Expanding into the Golden State represents a major milestone for Toyota Auto Insurance. Not only is California the nation's most populous state, it's also home to the first Toyota manufacturing facility in North America, Toyota Auto Body California.

Toyota Auto Insurance offers consumers a quick, easy and flexible policy purchase process via Toyota's state-of the-art mobile app, call

Auto Insurance Shopping, Switch Rates Reach New Highs as Premiums Surge

PublishedApril 27, 2023

The nation’s auto insurers are locked in a vicious cycle of inflation, rising premiums and steadily increasing customer defection rates. The result, according to the J.D. Power 2023 U.S. Insurance Shopping Study, released April 27, is a sharper focus on saving money as large numbers of auto insurance customers shop for new policies and switch to new carriers, largely based on price.

“Auto insurance customers are starting to shop for insurance like they shop for gas,” said Stephen Crewdson, senior director, insurance business intelligence at J.D. Power. “They are taking a much more active stance in

Michigan’s Auto Insurance Reform Law Reducing Costs, Paper Finds

PublishedApril 5, 2023

Michigan’s personal auto insurers are paying out less in claims and drivers are paying less in premiums since changes were made to the state’s no-fault system in 2020 and policyholders are benefiting, two non-resident scholars at the Insurance Information Institute (Triple-I) have found.

“Our initial evaluation of the likely effects of the reform legislation indicates that it is significantly reducing the costs of auto insurance for many Michigan drivers. How much these reductions will be for any given driver will depend on the PIP [personal injury protection] option they choose among other factors,” said No-Fault Auto

The Most Expensive Cars to Insure in 2023

PublishedMarch 29, 2023

A car’s make and model play a major role in how much drivers pay for auto insurance. Certain vehicles are deemed more of a risk to insure, which can raise the cost of the insurance policy.

The Guides Auto Team recently determined the 10 most expensive car makes to insure along with why they have high average premiums, as well as the cheapest car makes to insure.

Does Make and Model Affect Car Insurance Rates?

While auto insurers consider many factors when setting auto insurance rates, a car’s make and model are some of the most important. From typical repair costs to the number of liability claims filed, it

Tesla's Safety Score 2.0 Updates Make System Fairer for Insurance

Written by Steven Loveday, InsideEVs
PublishedMarch 27, 2023

Teslais making major changes to its Safety Score system, primarily because the technology help determine individual premiums for its in-house auto insurance.

The company's somewhat unique Safety Score technology has gone through multiple tweaks since its first release, and it appears Tesla may be using it much more going forward.

For those unaware, Tesla's Safety Score debuted as a way to help the company decide which of its beta testers would get early access to new releases of the Full Self-Driving beta capability.

Tesla's longer-term plans for its Safety