CCC Intelligent Solutions Inc. (CCC), a cloud platform provider for the property and casualty (P&C) insurance economy, released its Crash Course Q3 2025 Report, detailing how tariffs, economic volatility, and evolving consumer behavior are fundamentally reshaping the auto claims and repair landscape.
The report, based on an analysis of 300 million claims-related transactions and millions of bodily injury and personal injury protection (PIP)/medical payments (MedPay) casualty claims processed through CCC’s customer solutions, highlights a “supply chain reaction” impacting original equipment manufacturers (OEMs), suppliers, insurers, and repairers. This reaction stems from the convergence of supply chain disruptions, inflationary pressures, and the increasing technical complexity of modern vehicles.
Kyle Krumlauf, director of industry analytics at CCC and a co-author of the Crash Course report, stated, “Today’s auto industry is navigating unprecedented economic turbulence – from pricing pressures to sourcing challenges to household financial strain. These forces are converging in ways that represent not just cyclical pressures, but a structural shift. Our Q3 report provides context and clarity to help insurers, repairers and OEMs better understand these dynamics and adapt their strategies in a more complex and unpredictable environment.”
Key findings from the Crash Course Q3 2025 Report include a significant increase in part prices, which were flat from 2022 to 2023 but rose over 4% year-over-year in March and April 2025, a change attributed to tariff-driven supply chain disruptions. This contributes to the rising Total Cost of Repair (TCOR), which reached over $4,730 in 2024, marking a 3.8% year-over-year increase, with an additional 1.4% rise in the first half of 2025 compared to the same period in 2024. Labor rates have also seen a 3.1% year-over-year increase.
Consumer behavior is adapting to financial pressures, with CCC data indicating a shift towards higher deductibles. The prevalence of the $500 deductible decreased by 6 percentage points since 2021, while $1,000 deductibles increased by nearly 5 points during the same period. The report also notes an elevated total loss share, with more than 70% of total losses in 2024 involving vehicles seven years or older. This trend continued into Q1 2025, showing a 1-point year-over-year increase, reflecting the aging U.
S. car parc and declining used vehicle values.
The report further details the growing integration of technology in vehicle repair. Nearly 87% of direct repair program (DRP) appraisals included a diagnostic scan in Q1 2025, and just over 32% involved a calibration, up from approximately 24% a year earlier. This increased complexity impacts repair timelines; repairs requiring multiple calibrations averaged over 17 days from vehicle-in to vehicle-out, compared to 13 days for repairs with no calibrations, and 15.5 days for those with one calibration.
Casualty severity is also on the rise, outpacing general inflation. Average third-party bodily injury payouts reached $28,700 per injured party in Q1 2025, a 7% increase year-over-year. First-party personal injury protection (PIP) outcomes experienced a 10% year-over-year increase, primarily driven by increases in radiology, surgeries, and evaluation and management procedures. CCC states its Crash Course report is part of its ongoing effort to enhance industry knowledge and assist customers in leveraging data for informed decision-making.
