Mitchell: Vehicle complexity will continue to drive up severity, and cycle times while claims volumes fall

According to Mitchell International, the collision repair industry faces numerous challenges in 2025. These include increasing vehicle complexity, rising claims severity, and longer cycle times.

Key factors contributing to these challenges include:

▪️Increased vehicle complexity: Modern vehicles incorporate more advanced technologies, lightweight materials, and intricate systems, leading to more complex repairs and higher labor costs.

▪️Rising claims severity: This is driven by increased use of advanced driver assistance systems (ADAS), higher repair costs for electric and hybrid vehicles, and the rising cost of parts.

▪️Changing claims patterns: Lower claims volume due to increased deductibles and fewer accidents could impact the financial stability of repair shops.

These challenges necessitate a proactive approach from the industry. Repair shops must adapt their processes, invest in training and technology, and collaborate effectively with insurers to navigate this evolving landscape.

Read more: https://lnkd.in/eKKbf2u4

#collisionrepair #autoindustry #claims #vehicletechnology #ADAS #electricvehicles #hybridvehicles #insurance #industrytrends

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