Results from the “Who Pays for What” surveys
More than 1 in 5 shops now say they have billed insurers for the labor time required to set up and use a spectrophotometer, or color match camera, according to the quarterly “Who Pays for What?” survey completed earlier this year, and a higher percentage of them say they are being paid regularly for it by eight large national insurance companies. In response to inquiries submitted through the Database Enhancement Gateway, all three major estimating system providers have confirmed that the use of the camera to determine a color code formulation is not included in the published refinish labor times.
Classic Collision
Classic Collision announced the acquisition of Renton Collision Center in Renton, WA, further expanding its presence in the Pacific Northwest. Renton Collision Center has operated as a family-owned business for over 20 years, earning recognition for its customer service and high repair standards. In 2024, Classic Collision hit the 300-store mark by expanding into new markets in East Texas and Southern California and strengthening its presence in key regions like Florida, Virginia, and North Carolina. It saw a 21% increase in store count over the year, among the most significant footprint growth in the industry in 2024.
DRP Shops Maintain Advantage as Reimbursement Gap Widens Post-Pandemic
Over the past decade, data have consistently shown that shops on an insurer’s direct repair program (DRP) are more regularly paid for “not-included” repair procedures than shops not participating in that insurer’s DRP. However, since the onset of the pandemic in 2020, data indicates this payment gap is widening further. Analyzing averages across eight major insurers, the percentage of shops receiving reimbursement “always” or “most of the time” for not-included refinish procedures generally increased for both DRP and non-DRP shops between 2015 and 2020, though favoring DRP shops. Post-2020, however, payment rates for DRP shops appear to have stagnated, while non-DRP shops have reported a measurable decline in reimbursement frequency for these same procedures.
Top U.S. Auto Insurers Expand Market Share in 2024, Led by Progressive
The top five insurers — State Farm, Progressive, Berkshire Hathaway, Allstate, and USAA — together captured 63.59% of the total market in 2024, up from 62.49% in 2023. This trend reflects a growing consolidation at the top, placing pressure on smaller and mid-sized carriers to remain competitive. Among the standout performers was Progressive Group, which recorded a 24.5% increase in direct premiums written, rising from $48.26 billion in 2023 to $60.05 billion in 2024. The company now holds 16.73% of the private passenger auto market, second only to State Farm, which leads the category with an 18.87% share.
