The “Who Pays for What?” survey earlier this year suggests that insurers are resisting shops’ use of changes to the blend formula more now than they were two years ago. This year, just 20% of shops negotiating more time for blend operations said they are paid an increased amount ‘always’ or ‘usually’ by the insurers they deal with. Two years ago, when the estimating system changes were still fairly new, 40% of shops said they were paid for more blend time ‘always’ or ‘usually’ by insurers.
Out-of-pocket expenses for collision repair work are often higher than they were just a few years ago. More customers are paying for repairs themselves to avoid filing a claim, deductibles have risen, and there’s also been an increase in shops charging “co-pays,” some amount beyond a deductible for parts or labor for which an insurer declines to pay the shop. Although it’s becoming increasingly common for shops to offer financing, those that do acknowledge that it’s not something a lot of customers use. Nearly 9 in 10 shops say no more than “a few” customers take advantage of it.
North Carolina Insurance Commissioner Mike Causey last week acknowledged that some of the issues related to shops and insurers are “as bad now as ever,” but encouraged collision repairers to keep educating their state’s insurance regulators while being aware of the limitations those regulators face. But SCRS Executive Director Aaron Schulenburg pushed Causey to have his department follow the lead of other states’ department of insurance that accept complaints from shops as well as policyholders. “Do you think there’s a potential that your division might miss some of the bad behavior that’s occurring that impacts consumers by not having an avenue for the professionals who are engaging with those policyholders and claimants to be able to report that behavior,” Schulenburg asked. Causey acknowledged that could be true, and asked for more information about which states are accepting DOI complaints from shops. He also said he welcomed hearing from shops, even if they can’t file a formal complaint, saying if he’s only hearing from one shop but 10 others are facing the same issue, “we’re losing that ammunition.”
Auto claim count declined through the end of 2025. The latest data from the Independent Statistical Service (ISS) shows that the number of paid claims in the fourth quarter of 2025 dropped more than 11% from the same quarter a year earlier. Each quarter in 2025 was down more than 10% compared to 2024. The data shows that the number of paid claims for the entire year was down 11.9% compared to 2024, and down 18.8% from the full-year 2023. It’s not only the number of claims that is dropping. The data shows that the number of earned car years – essentially the number of insured vehicles – was down a little over 4% in 2025 compared to 2024, and has fallen 6.3% over the past two full years.
