Thursday, 20 January 2022 09:15

Average Length of Rental Increased by 1.8 Days Between Third and Fourth Quarters of 2021


...8.5 days, followed by Louisiana (+7.9).


Higher severity alongside larger repairs is a likely contributor to non-drivable LOR increases, in addition to the repair backlog referenced earlier.


“Some large, heavy collisions are being repaired rather than being declared total losses," according to Yoswick. "Because of the microchip shortage’s impact on new vehicle availability and price, coupled with the used vehicle price increases, wrecked vehicles that may have been deemed a total loss are now being repaired.”


Anecdotally, some shops are seeing increased delays with estimate and supplement approvals, especially on larger hits.


Rob Grieve, owner of Nylund’s Collision in Colorado, said in some cases, they’re seeing delays of two weeks or more.


“It definitely requires us to have additional conversations with our guests when they ask about repair timelines,” said Grieve.


Anderson agreed, saying “delays with approvals and reinspections for nonDRPs, and in some cases, even DRPs, are becoming more prevalent.”


Total Loss Claims


Total loss-associated LOR results also increased for all states, up 3.6 days to 17.6.


North Dakota saw the smallest increase at 0.2 days, while Alaska had an increase of 0.7 days. Washington, D.C., had the highest increase of seven full days, followed by Washington (+6.2), Oregon (+5.5) and Hawaii (+5.4).




A nearly four-day increase in LOR year-over-year may be reflective of many causes as discussed above but will require the efforts of the entire industry to solve.


Enterprise is committed to working with insurers, repairers and suppliers to help address these trends. Through foundational support provided by the Enterprise Holdings Foundation, Enterprise is spearheading the Collision Engineering Pilot Program in partnership with Ranken Technical College. The program, designed to attract and develop entry-level talent to fill essential roles within the collision repair industry, is piloting at four schools nationwide.


Source: Enterprise


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