A MarketWatch article published Dec. 24 examines how the auto insurance affordability crisis is changing driver behavior — with implications collision repair shops are already seeing in their bays.
One in three drivers lack adequate coverage
The article cites Insurance Research Council data showing one in three U.S. drivers (33.4%) were either uninsured or underinsured in 2023, up 10 percentage points since 2017. That includes 15.4% who were completely uninsured.
Deductibles have climbed sharply as well. Mitchell International data shows average first-party deductibles grew 47% between January 2019 and July 2024.
Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, told MarketWatch that $1,000 deductibles that “used to be a rarity” are now common, with $2,000 deductibles increasingly appearing.
The J.D. Power 2025 U.S. Auto Claims Satisfaction Study, released in October, confirmed the trend: 26% of auto insurance customers now carry deductibles of $1,000 or more, and 7% said they avoided filing a claim for fear their rates would rise.
Customer-pay work on the rise
Mike Anderson, president of Collision Advice, told MarketWatch that customer-pay repairs now account for nearly 20% of repair orders among the 200 shops he tracks — up from around 8% just a few years ago.
“For the foreseeable future, customer pay is going to stay pretty strong,” Anderson said.
Some shops are seeing even higher numbers. Gary Wano Jr. of GW & Son Auto Body in Oklahoma City told Autobody News that customer pay has made up almost 30% of his shop’s project count since late 2024.
“We have implemented [a process] within the consultation [to determine] how the potential client wants to proceed — discussing repair options, alternative parts, but defining the differences from new OE parts,” Wano said.
Anderson has elaborated on why shops should view customer-pay work as an opportunity. During an August episode of “On the Road with Mike Anderson,” he noted the advantages.
“Customer pays are also better for body shops,” Anderson said. “They mean a higher profit, OEM parts and a quicker cycle time with less admin work.”
He estimated the average maximum a customer will pay out of pocket is around $4,000 and recommended shops consider offering third-party financing for larger repairs.
Small claims disappearing
The shift is showing up in industry data. CCC Intelligent Solutions reported in its Q3 2025 Crash Course that repairs under $2,000 now represent just 25.5% of repairable claims through June 2025, down from 41.5% in 2019.
“With higher deductibles and the potential for claim filing to affect insurance rates, consumers are simply not filing smaller claims, choosing instead to pay out-of-pocket or live with the damage,” CCC noted.
Some drivers skipping repairs entirely
But not all drivers who skip claims are getting repairs. Some defer work entirely, creating potential safety concerns when damaged sensors or cameras go unaddressed.
Schulenburg told MarketWatch the unaddressed damage becomes visible when vehicles come in for other service. “I think you are going to see more of that,” he said.
Unless there are large shifts in insurance affordability, customer-pay work at shops is likely here to stay, and those prepared to serve price-conscious customers with transparent estimates, financing options, and clear communication about repair needs are better positioned to capture it.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.