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2001 Vs. 2006: 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 steadily risen, increasing over 27% between 1996–2005 ($2,112 compared to $2,690 per claim). The National Safety Council reports that average economic losses caused by a property damage crash (including minor injuries) in 2004 declined to $7,400 compared to 2003’s average of $8,200. 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 27.4% between 1996–2005, the overall cost of living increased 24.5%.
Hourly repair shop labor rates
28 insurance companies representing nearly 69% of the private passenger auto insurance market (based on 2005 direct premiums written in Ohio) responded to the 2006 OII survey. Repair rates in Ohio’s major metro areas increased by 13.9% between 2001–06. Labor costs are based on auto body (sheet metal) repair.
The Insurance Information Institute reports that motor vehicle body work in the US rose 29.5% between 1996–2005, based on data provided by the US Dept. of Labor, Bureau of Labor Statistics.
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25% of drivers mistakenly believe that car color affects auto insurance premiums. The color of your car is not factored into rates.
(Progressive Insurance survey, from Chicago Tribune, 8/22/05)
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