Fixed Ops Magazine - 2021 Vol18 04 - 52

VEHICLE REPAIR DEPARTMENT
FIXED OPS
CRASH
COURSE
A New Reality for Repairing Vehicles
A
t the beginning of 2020, the economy was
strong, unemployment rates were low, congestion
levels were high in many urban areas,
and miles driven continued to grow. Auto accident
and claim frequency had started to
flatten, but average vehicle repair
costs continued to rise. And then
the pandemic.
a small decline in
claim counts in CY
In response to rising diagnoses, hospitalizations,
deaths, and immense
uncertainty, many states began issuing
shelter-at-home orders in midMarch.
All but essential and frontline
workers sheltered at home. Many
companies furloughed employees
or let them go, while those that
could have their employees work remotely quickly set
them up to do so. Daily trips and miles driven in the
U.S. plummeted, and auto accidents and claim counts
followed suit.
2019 became an even
bigger decline in CY
2020 with COVID-19
Not surprisingly the number of motor vehicle accidents
and auto claims fell substantially. Claims data
CCC processed on behalf of its customers revealed
that a small decline in claim counts in CY 2019 became
an even bigger decline in CY 2020
with COVID-19 (Figure 1). Claims
volume in early 2021 remains down,
although there are some indications
that as the economy slowly emerges
from the pandemic, claim and accident
volumes are slowly increasing.
Important indicators of recovery for
our industry include data such as
miles driven, gasoline consumption,
congestion levels (people commuting
to work and students attending
in-person school), economic growth, new and used vehicle
sales, and more. Health concerns during the pandemic
and into CY 2021 will likely mean more people
using their personal vehicles, walking, or biking versus
taking public transportation.
52

Fixed Ops Magazine - 2021 Vol18 04

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