February Collision Corner
Initial estimates prepared by insurance company staff are becoming increasingly rare for direct
repair claims, according to data shared by CCC Intelligent Solutions. As recently as 2017,
insurance adjusters were writing more than 40% of initial estimates for repairable vehicles. In
the first nine months of 2024, they wrote less than half that — just 18% of such estimates. Over
the same time period, virtual/photo estimates have grown from less than 1% of claims volume
in 2016 to more than 1 in 4 (25.6%) in 2024.
Massive Independent Body Shop Set to Close After 33 Years in Business. Leif’s Auto Collision
Center in Tigard, Oregon is preparing to close its doors, marking the end of a 33-year legacy. It
will not be sold or transferred as founder and owner Leif Hansen prepares to retire in April.
Leif’s Auto Collision Center claims to be “America’s largest independent body shop”, the
expansive facility covers 5 acres and includes 130,000 square feet. Hansen declined to disclose
the number of employees who will be affected by the closure, but he did confirm the business
will not be sold or transferred.
Car insurance rates increased by 15% in 2024, adding to the rising cost of car ownership. U.S.
drivers now pay an average of $2,313 annually for full coverage, but rates in six states exceed
$3,000 annually. The cost of full coverage policies increased by 24% in 2023 in response to
record underwriting losses of $33.1 billion in 2022. As the industry has recovered, rate
increases have slowed. Average premiums decreased in 21 states in the second half of the year,
according to Insurify data. EV insurance costs for nine popular models rose by 28% in 2024,
twice as fast as comparable gas-powered models. EVs are now 24% more expensive to insure
than comparable gas models, with an average annual full coverage cost of $3,430.
