Insurance-related accident repair costs rise by 4% in first half of 2019

The average insurance-related accident repair cost for all makes and models of cars has increased by 4% in the first half of 2019, according to automotive industry research organisation Trend Tracker.

An update of its January 2019 research, The Future of the UK Car Body Repair Market: 2019-2024 report, which is based on data regarding 12 million insurance company authorised repairs transacted via the Solera Audatex platform between 1 January 2013 and 30 June 2019, revealed that the weighted average repair cost for cars within the first half of 2019 rose to £1,919. This compares to a weighted average of £1,845 that was recorded in 2018.

In 2013, the weighted average for the overall cost of repairs totalled £1,366; this demonstrates a 40.5% or £553 increase between 2013 and the first half of 2019.

Adding up

The report further found that parts make up about 42% of the total average accident repair cost; this has remained consistent over the past six years.

In the first half of 2019, the average spend for parts within car repairs amounted to £803, versus £787 in 2018 and £721 in 2017.

Mark Bull, director and research analyst at Trend Tracker, said: “Working with one of our primary partners, Solera Audatex, we have analysed the latest repair cost data, both annually and over a six-year period.

“The data clearly demonstrates that vehicle design and build complexity, including advanced automotive engineering technology system integration, has resulted in higher accident related parts cost increases and additional labour time being required to return a vehicle back to the road safely, leading to higher costs.”

Trend Tracker’s data is supported by analysis compiled by the ABI for quarter two of 2019; this observed a decline in the rate at which policyholders are claiming against their motor policy. This achieved its lowest level on record in Q2 of 2019 at 11.4%.