Toronto Ontario — Nearly 60 percent of 2021 estimates had “some form of diagnostic line,” Enterprise Holdings said in its Q4 2021 Length-of-Rental (LOR) Report.
In its recently released LOR report, Enterprise compared the LOR for transactions associated with collision repairs to those of Q4 2020. According to the data, just over half of 2020 estimates–53 percent–contained diagnostic lines, said Enterprise. The rise likely comes as a result of OEM procedures and overall best practices calling for diagnostic checks in any case of repair.
Enterprise said percentage estimates along calibration lines remained consistent from 2020 at around five percent.
Claims
Shared data from Mitchell International also indicated more extreme repair claims, said Enterprise, which largely contributed to cycle time and LOR. Parts prices also continued to increase, with sheet metal parts seeing the largest increase in Q4 2021 compared to Q4 2020, said Enterprise.
“Mitchell saw an increase in average vehicle age from 5.17 years old to 5.28 years between Q4 2020 and Q4 2021. Percentage increases of repairable claims were seen across the luxury, truck/SUV and electric vehicle segments,” said Ryan Mandell, director of performance consulting at Mitchell.
“Meanwhile, repair percentages visibly returned to normal levels, with a 1.1 percentage decline in Q4 2021 compared to Q4 2020,” explained Mandell. “Short-term increases in microchip supply eased supply chain issues in previous quarters, but the shortage will likely impact the automotive sector (into) 2023.”
Rentals
In terms of rentals, Enterprise said, nationally, results were up one day in Q4 2021, from 11.8 in Q4 2020 to 12.8 days in Q4 2021.
Conversely, the U.S. experienced a year-over-year LOR increase of almost four days.
Ontario and Quebec had the joint-highest increase by 1.9 days, while Alberta saw a reduction of 0.9 days over the previous year’s fourth quarter.
Drivable LOR saw a modest increase by 0.5 days. Ontario and Prince Edward Island (P.E.I.) shared the highest increase of 1.4 days, while Alberta was down one day. Nationally, non-drivable LOR had the highest increase, up 2.7 days from Q3 2021 to 20.7 days in Q4 2021. P.E.I. saw an increase of 6.3 days, Nova Scotia at 4.7 days, Ontario at 4.4, and Alberta at 0.2 days.
Overall loss-associated rentals increased by 1.7 days. Ontario was the highest with a 3.1-day increase, followed by Nova Scotia with a 2.2-day increase. Alberta saw a 0.4-day decrease.
While Canada’s Q4 2021 LOR increase of a day seems high, it pales in comparison to Q4 2021 LOR results for the United States. Enterprise says it will keep a close eye on LOR, reaffirming its commitment to insurers, repairers and supplier partners across Canada to coordinate information and evaluate current processes.
Did your business witness an increase in reporting diagnostic lines on estimates in 2021? If so, why?
