Copart reports ‘all-time high’ average selling prices as total loss frequency remains up
Copart reported to investors on Thursday that its U.S. insurance-obtained vehicles declined 9.5% in fiscal Q1 2026 compared to the previous Q1, and is achieving “all-time high” average selling prices.
“The underlying drivers of these trends are consistent with what we have discussed in prior quarters,” said CEO Jeff Liaw. “It’s a combination of market share evolution among insurance carriers themselves, soft claims counts as a result of consumer retrenchment in their auto insurance purchasing behavior, offset by rising total loss frequency. ”
He added that total loss frequency has continued its long-term upward trend, “consistent with nearly the entirety of the history of our company and our industry.”
He cited the total loss frequency as hitting 22.6%, according to CCC data through September.
“Rising total loss frequency means that an increasing portion of the cars that we sell on behalf of the insurance industry are actually cars that will be repaired and drivable again, both in the U.S. and overseas,” Liaw said.
“We continue to sustain and expand what we believe to be our advantage in generating best-in-class auction returns for our insurance clients. Even including the highly inflationary 2021/2022 COVID era, when semiconductor shortages further increased vehicle prices, we are achieving all-time high average selling prices for our U.S. insurance carriers.”
For the quarter, Copart’s U.S. insurance average selling prices (ASPs) increased by 8.4%, and by 6.8% globally.
Liaw added that paid claims frequency for collision coverage in calendar year Q2 was down 7.5% compared to the same period last year, and earned car years for the period were down 4.1%.
“At the same time, vehicles in operation for the second calendar quarter 2025 actually increased 1.4%,” he said. “We see further data in the underlying activity that shows miles driven continue to remain robust and growing. We understand from many of our insurance partners in the industry that consumers are responding to late-cycle insurance rate increases by reducing the scope of their coverage or foregoing it altogether.”
He added that as a result, fewer vehicles are entering the insurance company-mediated total loss process.
“Over the long term, however, the penetration rate of auto insurance coverage and collision coverage specifically appears to be cyclical,” Liaw said.
Since 2022, Copart’s share of U.S. vehicles purchased by international buyers has continued to grow.
“In 2026, international buyers have purchased vehicles that are 38% higher in value than comparable U.S. buyers,” Liaw said. “We believe that these are long-term, durable trends as population growth and mobility demand growth outside the United States, outside the UK, Canada, and so forth continues to outpace what we were experiencing firsthand in our origin markets.”
Copart’s U.S. insurance gross returns have increased substantially since 2022, he added. He defined gross returns as the selling price for a salvage vehicle divided by its pre-accident actual cash value.
Leah Stearns, Copart’s chief financial officer, reported to investors that total global units sold during fiscal Q1 decreased by 6.7% and fee units decreased by 6.3%. And in the U.S., total units sold declined by 7.9%.
“We continue to focus on driving higher value units through our marketplace, and have developed a more profitable channel for Copart to manage lower value units through, which we have branded Direct Buy. These are units which Copart would have previously purchased through its Copart Direct, cash-for-cars business unit, and instead now is earning a referral fee to connect a junk buyer to the individual seller. As a result, the units are not part of Copart’s inventory, and we do not incur costs associated with the processing and handling.”
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