CCC Intelligent Solutions released its Q2 2025 Crash Course Report, showing key performance indicators across the auto claims and collision repair industries show softening cost pressures in some areas, though loss severity continues to be a concern.
“At the same time, the broader economic environment remains uncertain, with potential tariff impacts and other global trade dynamics introducing new cost and supply chain pressures that could affect repair costs and claims handling in the months ahead,” the report said.
Total Losses Continuing to Climb
Through April 2025, 22.6% of all claims were declared total losses, a 0.9-point increase from the same period in 2024.
Contributing factors include: declining used vehicle values, which are now beginning to rebound due to supply and demand dynamics; a shifting vehicle age mix, as more than 70% of total losses in 2024 were vehicles 7 years of older; and lower claims volumes. Adjusted vehicle values are down 2.0% year-over-year, averaging $13,445.
For repairers, labor costs remain elevated among technician shortages, and shops are contending with parts availability issues, especially for newer and ADAS-equipped vehicles. Repair procedures are continuing to increase in complexity as well; CCC reported calibrations appeared on more than 31% of DRP estimates, up from 23.9% a year earlier, while nearly 87% of DRP estimates included a scan.
“Shops that have invested in diagnostics, training and process automation are better positioned to manage these pressures and maintain throughput,” the report said.
Repair Trends
The average total cost of repair (TCOR) finished 2024 at more than $4,730, a 3.7% increase year-over-year — though the lowest increase since 2017. Through Q1 2025, average total repair costs are +1.1% year-over-year, though this is likely to develop further. Increases in repair costs have been mitigated by the increase in total losses and age mix. However, there are a variety of underlying factors which continue to put upward pressure of repair costs, including labor rates, part prices, and diagnostics.
Average part prices stayed relatively flat between 2022 and 2023, but began to show signs of inflation beginning in Q2 2024. Part prices are generally the top concern for the repair ecosystem as the U.S. braces for the effects of tariffs. Though less evident in the early months of 2025, March and April both indicate year-over-year increases in excess of 4%.
At the end of 2024, the average repair estimate included 13.6 parts. Initial results for Q1 2025 indicate a further decline of about 0.4 parts per repair. Much of these results, which could still be developing as supplements and other factors are considered, may be attributed to repairable age mix and increased total losses.
Average labor hours fell to 26.7 per claim by the end of Q1 2025, about a 0.9-hour decrease from the end of 2024, though that too could still be developing.
Labor rates, on the other hand, continue to be a major driver of year-over-year repair cost increases. Q1 2025 saw a 3.2% increase relative to Q1 2024. Like the 4.5% average increase in 2024, this reflects a slowing rate of increase: 2023 was up 7.5% year-over-year.
“Average labor rate increases continue to near the inflation rate as we close out Q2,” CCC said.
Backlogs and Cycle Times
Shop backlogs continue to improve on a year-over-year basis. While more heavier-hit vehicles were repaired in 2022 and 2023, decreased vehicle values have increased total loss frequency, accounting, at least in part, for improved cycle times. Claims volumes, which remain down year-over-year, are also contributing to improved backlogs.
The quarterly “Who Pays for What?” survey conducted by CRASH Network and Collision Advice found that in April, the national backlog of work in shops nationwide was just 1.7 weeks, falling from a peak of nearly six weeks in 2023, and more than 20% of shops had no backlog at all.
CCC said the improved backlogs and increased total losses are also reflected in improved cycle times. The average time between last estimate assignment sent and vehicle in (to the shop) are almost half of the days required in Q1 2023. Overall repair days remain down by about two days in total from their peak, yet remain up by four to five days relative to 2020. Factors such as increased supplement handling and technician shortages could be contributing to elongated repair times.
The share of non-driveable repairable claims were up +0.3 percentage points in Q1 2025. Daily productivity — measured by labor hours per repair day — indicated modest, yet noticeable improvements year-over-year, especially with non-driveable vehicles. Given the increased propensity for repairs to include supplements, productivity improvements will likely rely upon improved communication and process efficiency between shops and insurance carriers, CCC said.
