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2001 vs. 2005: Auto Repair Costs In Selected Ohio
Cities
Factored into the cost of auto insurance is the cost of vehicle
repair. Garage labor rates continue to rise, based on the Ohio Insurance
Institute’s (OII) annual survey of average repair shop rates
in Ohio’s major cities.1
Property damage costs, according to Insurance Services Office,
Inc., have been on a steady rise, increasing nearly 30% between
1994–2003 ($1,856 compared to $2,635 per claim). The National
Safety Council reports that average economic losses caused by a
property damage crash (including minor injuries) in 2003 was $8,200
compared to the 2002 average of $6,200. Economic costs include wage
and productivity losses, medical and administrative expenses, property
damage and employer costs.
Auto accident claim costs continue to outpace general inflation.
While the average property damage claim rose 32.1% between 1994–2003,
the overall cost of living increased 24.2%.
Hourly repair shop labor rates
29 insurance companies representing over 67% of the private passenger
auto insurance market (based on 2003 direct premiums written in
Ohio) responded to the May 2005 OII survey. Repair rates in Ohio’s
major metro areas increased by 9.8% between 2001–05. Labor
costs are based on auto body (sheet metal) repair.
The Insurance Information Institute reports that motor vehicle
body work in the US rose 32.1% between 1994–2003, based on
data provided by the US Dept. of Labor, Bureau of Labor Statistics.
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16% of vehicles involved in crashes are now
being declared a total loss, compared with 7% in 1995.
(Collision Repair Industry Insight from
The Wall Street Journal, 7/22/04)
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| 1 |
NOTE: Average rates of these
various cities do not necessarily reflect the actual hourly
prevailing or market rate of an individual insurance company.
These numbers are based on a survey of OII members who represent
about 67.3% of the personal auto lines market (based on 2003
direct premiums written in Ohio) and should be used as a
general guide in comparing the cost of vehicle repair in
2001 to 2005. |
| 2 |
City average refers to auto labor costs. The parts used are
the prevailing prices manufacturers charge in Ohio as a whole,
not by individual cities. |
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