Severity of collision losses in Canada decreasing: Mitchell

The severity of collision losses in Canada decreased $165 in 2011 Q4 to $3,145, according to Mitchell’s ‘Industry Trends Report Q1 2012.’

In 2011 Q4, the average initial gross Canadian appraisal value for comprehensive coverage estimates processed through Mitchell’s servers was $3,351, or $21 lower than in the same period of 2010.

The initial gross average of third-party property damage also saw a decrease quarter-over-quarter, dropping $175 from 2010 Q4 to $2,719 in 2011 Q4.

“As a general observation, recent data show that parts make up 44.9% of the average value per repairable vehicle appraisal, about 0.63 points more than the average allocation of labour dollars,” the report says.

“In addition, the overall year-over-year trend now reflects an appreciable decrease in OEM parts use, an increasing volume of aftermarket parts dollar used by Mitchell-quipped estimators, relatively constant remanufactured parts use, and increasing recycled parts use.”

British Columbia saw the greatest increase in average body labour rates, at 11% (from $59.50 to $66.55). Alberta, the Northwest Territories and Quebec saw the next highest increase, all at a 3% change.

Saskatchewan was the only province or territory to see its average body labour rates decrease, by 2% from $68.27 to $66.72.