The overwhelming majority of the automotive incident repair sector expects claims cost to continue rising in the next year.
Costs have risen sharply in recent years, driven up by increasing technology in vehicles and the rising price of parts, but results of a new survey suggest that most believe we are still some way short of the peak.
The second Great British Motor Claims Survey, hosted by ILC/ARC360, asked stakeholders if they expected accident claims cost to continue rising in the next year. A staggering 84% said yes, with a further five per cent unsure. Only 11% of respondents said they thought further rises were unlikely.
Respondents cited new technology as the main factor behind rising costs, reducing the number of claims but raising the average price of a repair, while other contributors suggested the greater number of electric vehicles on the road, more costly reworks, and delays in authorisations from insurers.
With Covid-19 continuing to impact staffing levels, either directly or indirectly, respondents to the survey also warned that disruptions to the supply chain could be another factor forcing repair prices up.
The full Great British Motor Claims Survey will be available via the ARC360 website on Wednesday 11 August.
