CCC report shows shift to DRP and AI appraisals
As the industry raises concerns about seeing more centralized auto claims audit teams, CCC’s newest report gives data on a shift in appraisal handling of vehicles.
The method of inspection has continued to move toward direct repair programs (DRP) and photo estimating, the report says. DRPs now account for 46.7% after increasing more than a percentage point and photo estimating is at 26.4% after increasing nearly a percentage point.
Independent appraisers (IA) saw a one-point decrease in 2025 to 6.9% and the staff channel decreased by 0.8 points to 16.5%.
Staff appraisers have the largest share of estimates flagged total loss, followed by photo and DRP.
CCC’s Crash Course Report also found that repairable claim volume declined by 9.7% in 2025 and non-comprehensive volume was down 8% for the year.
The Preliminary average total cost of repairs (TCOR) was $4,818 for 2025, a 1.7% increase from 2024. It is the lowest percentage increase since 2017. The small shift is primarily driven by the increase in total part dollars and miscellaneous costs, which often include sublet items, such as diagnostics.
The mean labor rate saw a 2.9% increase in 2025, the lowest rate increase since 2021. Labor rate increases, on average peaked in 2023.
Labor as a percentage of total cost of repair is down marginally year-over-year, seeing “almost a neutral offset of increasing labor rates coinciding with decreasing labor hours.”
Calibrations saw a 6.5% increase from 21.8% to 28.3% for 2025, equating to a 30% increase in the number of repairable estimates where a calibration was present.
The average price per part was up 6% in 2025. The price was primarily driven by a decrease in the average number of parts per repair, which dropped to 13 from 13.6 in 2024. The decline in average parts has been consistent across vehicle age group, the report says.
OEM part dollars saw a 1.8% decrease in 2025 and aftermarket parts saw a 1.7% part dollar increase.
Aftermarket parts utilization surpassed historical highs in 2025 with 22.7% of total part replacement dollars used for aftermarket parts. OEM parts still continued to be the most used at 63.5%.
Some of the shift is attributed to older vehicles and increased share of total losses, the report says.
There is a strong likelihood that the average age of light vehicles will hit the 13-year mark in 2026, the report says. Last year, the average age reached 12.8 years.
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