New CCC report: Scans and calibrations now ‘routine’ at DRP shops, other industry trends

CCC’s Q3 Crash Course report found that while calibrations extend cycle times, they, along with diagnostics, are now routinely completed at direct repair program (DRP) shops.

Nearly 87% of repairable DRP appraisals included a diagnostic scan in Q1 2025. Just over 32% included a calibration, up from 23.9% compared to Q1 2024. And 56.5% percent of Q1 DRP calibrations appeared on a supplement.

“The proliferation of ADAS has made diagnostic scans and calibrations a routine part of the repair process,” CCC’s report states. “Calibrations are not only costly but also add significant time to the repair cycle.”

Repairs with multiple calibrations averaged more than 17 days keys to keys compared to 13 days for repairs with no calibrations. Those with one calibration averaged 15.5 days.

“This complexity demands major investments in tooling, with diagnostic equipment ranging from $5,000 to $20,000, plus ongoing maintenance costs,” CCC wrote.

The average price per part also continues upward, with a YoY increase of 6% in June 2025, which CCC says is exacerbated by a weaker U.S. dollar. The weaker dollar makes U.S. salvage vehicles more attractive to international buyers, shrinking the domestic pool of recycled parts and driving up their cost, the report states.

“Compounding these material cost issues is a persistent labor crisis,” the report says. “According to TechForce Foundation’s 2024 Supply & Demand Report, new entrant demand for collision repair technicians will reach 75,000 by 2028, with only 30,000 collision repair program graduates lined up to fill the gap.”

However, shop backlogs and cycle times are improving.

CCC says the lessened backlogs are due to decreased vehicle values increasing total loss frequency, and claims volumes being down YoY.

CCC reports that the average number of days between the last estimate assignment sent and the vehicle arriving at the shop is down by nearly half compared to Q1 2023. Overall, repair days remain down around two days from their peak, yet remain up by four to five days relative to 2020, the report says.

The report also provides details on how tariffs, economic uncertainty, and consumer behavior are “reshaping the auto claims and repair ecosystem,” a CCC press release states. Supply chain disruption paired with inflationary pressures and the growing complexity of vehicles is also explored in relation to OEM, supplier, insurer, and repairer strategies, according to the release.

“Today’s auto industry is navigating unprecedented economic turbulence — from pricing pressures to sourcing challenges to household financial strain,” said Kyle Krumlauf, CCC’s director of industry analytics and co-author of Crash Course, in the release. “These forces are converging in ways that represent not just cyclical pressures, but a structural shift. Our Q3 report provides context and clarity to help insurers, repairers, and OEMs better understand these dynamics and adapt their strategies in a more complex and unpredictable environment.”

CCC says its data shows average part prices, which were flat between 2022 and 2023, rose more than 4% year-over-year in March and April of this year, coinciding with tariff-driven supply chain disruptions that are “reshaping repair economics.”

“Though still developing, June (+5.0%) and July (+6.6%) results indicate increased acceleration of part prices as pre-tariff supplies dwindle, and pricing reflects the effect of tariffs,” the report says.

The report cites an automotive market research survey fielded earlier this year by IMR in which 38.6% of shops reported operational impacts from tariffs, with cost increases being the most common issue.

“Larger shops with eight or more bays are disproportionately affected, with 73.7% citing tariff-related cost increases compared to just 16% of small shops,” CCC wrote.

CCC reports that the average total cost of repair (TCOR) reached over $4,730 in 2024, up 3.8% YoY, with an additional 1.4% in the first half of 2025 compared to the first half of 2024, according to the report. CCC noted that the TCOR increase is the lowest since 2017. Through the first half of 2025, average total repair costs were up 1.4% YoY. Labor rates increased 3.1% YoY.

Total industry claim counts are down 8.5% year-over-year through July 2025, according to the report. However, CCC noted that it isn’t because roads are safer. In fact, overall moving violations were up 17% YoY in 2024, CCC wrote.

Collision and comprehensive claims account for nearly 90% of the annual decline in volume. Comprehensive claims alone are down 15.2% through July 2025. (Figure 4) This is partly due to fewer severe weather events compared to 2024, but it is also a story of economics.

The report states that total losses continue to represent a larger share of claims due to declining vehicle values, aging car parc, and a declining share of reported lower-dollar claims; all factors that continue to shift the claims mix.

More than 70% of total losses in 2024 involved vehicles seven years or older, with Q1 2025 showing a 1-point increase YoY. CCC says that reflects the aging U.S. car parc and declining used vehicle values.

“The share of claims flagged total loss was a record in 2024, based on CCC’s historical trends,” the report says. “Total losses continue to trend higher in 2025, despite gradual increases in used vehicle values. Factors, such as a decline in lower-dollar claim filings and vehicle age mix, continue to exacerbate total loss volumes.

“Second quarter results indicate a 0.8-point increase in the share of total losses year-over-year, while the overall share has increased by one full percentage point.”

The share of repairable appraisals for damages of $2,000 or less declined from 41.5% in 2019 to 25.5% through June 2025.

“With higher deductibles and the potential for claim filing to affect insurance rates, consumers are simply not filing smaller claims, choosing instead to pay out-of-pocket or live with the damage. This discretionary filing behavior is a direct consequence of financial pressure.”

The full report can be downloaded here.

Images

Featured image credit: CCC’s 2017 SEMA Show booth. (Repairer Driven News file photo)

Graphs reprinted with permission from CCC