Factored into the cost of auto insurance is the cost of vehicle repair.
Garage labor rates continue to rise, based on the findings of OII’s
annual survey. Average repair shop rates of Ohio’s major cities are
provided for the years 1996 and 2000.
According to Insurance Information Institute (III) Fact Book 2001, the average claim cost for property damage increased nearly 36% between 1990–99. The average property damage claim was $1,689 in 1990, rising to $2,291 in 1999. The Ohio Department of Public Safety reports the average property damage only cost per crash in 1999 in Ohio was $4,500.
Auto accident claim costs continues to outpace general inflation. While the average paid property damage claim climbed 35.6% between 1990–99, the overall cost of living rose 27.5%.
Hourly repair shop labor rates
Ohio garage labor rate increases from 1996 to 2000 varied anywhere from 14.9% (Toledo) to 19.3% (Columbus), depending on the city. An annual survey conducted by the OII of its members serves as the basis of the repair rates shown for Ohio’s eight largest cities. 2000 information was prepared by averaging the responses of 28 property/casualty insurers. As seen by the city average, repair rates in Ohio’s major metro areas have increased by 17% in the last five years. These labor costs are based on auto body (sheet metal) repair.
In comparison, III reports that motor vehicle body work in the US rose 34.1% between 1990–99.
