Rising parts costs, consumer affordability issues, changing vehicle technology and tariffs continue to impact the auto claims and repair landscape, experts say.

Those were among the topics focused on during CCC Intelligent Solutions’ Q3 Crash Course webinar in late October, held in partnership with Parts Authority.

Speakers Kyle Krumlauf, industry analyst at CCC Intelligent Solutions, and Toby Pawlaczyk, category manager at Parts Authority, shared data on the latest trends in collision repair and auto insurance.

Fewer Claims This Year

The experts covered a variety of data and trends.

Through the third quarter of the year, estimates for auto repairables were down, according to Krumlauf.

He said the decline was largely tied to fewer collision and comprehensive claims, especially in states such as Colorado and Texas that saw less severe weather.

Krumlauf noted that financial pressures are influencing coverage decisions. He cited a Guardian Service survey that found that one in three consumers said they would temporarily go without insurance to free up funds for necessities if they had to, and that 29% had downgraded or canceled insurance in the past year.

He also pointed out that the average new car loan reached $42,600 at a roughly 7% interest rate, while used car loans now average nearly $30,000 with 10.8% interest rates. Higher costs have led some drivers to delay claims or repairs.

Average repair costs reached $4,750, up 1.6% year over year, which Krumlauf described as a slight increase compared with post-pandemic spikes. Parts prices rose sharply, increasing around 7% in August and 10% in September, he noted.

Tariffs and Shipping Costs

Pawlaczyk explored the impact of parts and tariffs. He noted that most OEM parts are made in North America, while aftermarket parts come mainly from Taiwan. A 20% import tariff on Taiwanese goods has encouraged some manufacturers to move production to Thailand, Cambodia and Vietnam.

“OEM is primarily North America, Canada, Mexico, and a lot of your aftermarket products are primarily made in Asia, Taiwan in particular,” Pawlaczyk said. “They do a pretty darn good job at it.”

Many suppliers also ordered parts early in 2025 to avoid tariff-related price increases, he added.

He described Taiwan as one of the most reliable sources for aftermarket parts, noting that the country’s ports are highly efficient. Pawlaczyk added that manufacturers and distributors are increasingly aware of the need to diversify their supply channels to reduce the risk of shipping delays or part shortages.

EVs and Hybrid Repairs

The panenlists also discussed the growth of electric and hybrid vehicles and how that continues to influence repair work.

“Combustion engine vehicles now represent less than three-quarters of that mix of claims that are three years or newer,” Krumlauf said. “Hybrids represent about 17%…electric vehicles represent almost 10% of the mix.”

Because of the new technologies, Pawlaczyk said repair shops that invest in calibration tools and skilled technicians will be better prepared for the industry’s future.

“If I was to open a collision repair shop tomorrow, I’d make sure I had the smartest kids coming out of trade schools that wanted to be in computerization of things, that knew how to work on vehicles,” Pawlaczyk said. “I’d have the equipment. I would make sure that all that was invested in.”

What’s Next

Parts inflation may stabilize if tariffs and shipping costs even out, the experts agreed.

“I think that they need to stabilize. That’s what we’re looking for. If shipping becomes cheaper, they would go down. If it comes up, it would hover around two to 3 to 4%,” Pawlaczyk said. “That’s where I hope they need to be, and that’s where they historically have been.”

Pawlaczyk described the market as unpredictable, but he said that doesn’t mean people in the auto claims and repair industry can’t pay attention to what’s going on and be ready for the changes.

“It just keeps you on your toes and the best that study it and that can get in front of it and prepare for it and work as team members inside their organizations to ensure everything that they can do to in order to capitalize upon it will win, Pawlaczyk said.