The Big Easy is Working Hard on Rental Fleet Repairs

Enterprise Rent-A-Car’s Quarter One 2021 report tracking the average length of car rentals reveals that Louisiana saw the largest drivable increase and also the largest increase in non-drivable claims.

Drivable claims refer to claims in which a vehicle is operable after an auto accident. If a vehicle is not operable after an auto accident, the claim is considered non-drivable. According to Mitchell International, the report states that the length of vehicle rentals attributable to insurance claim increased by 2.7 days in the first quarter in Louisiana.

Alabama, Iowa, Oklahoma, South Dakota, Idaho, and Mississippi saw increases of one full day or more. The largest decrease was in Colorado, where the length of rental (LOR) dropped by 1.8 days from 2020. According to the report, this decrease was almost one full day greater than the next state with the nearest drop. Minnesota’s LOR dropped one full day from 10.4 to 9.4.

Non-drivable claims in Louisiana increased by two full days in the first quarter, from 20.4 to 22.4. Idaho, Mississippi and Oklahoma also saw non-drivable increases of more than one day.

Only five other states experienced increases: Arkansas, Alabama, Arizona, Iowa and Vermont.

Non-drivable decreases were seen in 41 states and Washington, D.C.

Significant decreases include a drop of 4.6 days in Wyoming, and three days or more in Colorado, Kansas, Minnesota, North Dakota and Washington. Decreases between 2.0 and 2.9 days were experienced in California, Hawaii, Maryland, New Hampshire and Nevada. Seventeen other states had decreases greater than one day.

Louisiana also gained the distinction in the first quarter of total loss increase, up 2.6 days from 13.6 in the first quarter of 2020 to 16.2 in the first quarter of 2021. Increases were also reported in Arkansas and Oklahoma of two days, while eight states saw increases of at least one day.

The largest decrease, however, was in Rhode Island, down 2.6 days, and a reduction of 2.1 days in Washington, D.C. Decreases of a day or more were also seen in Delaware, Maryland, New Jersey and Wyoming when it came to total losses.

Recent industry buzz is about potential parts shortages and delays which would affect repair in the U.S., but statistics point toward a robust part supply chain.
While a microchip shortage is impacting new vehicle production, the impact on collision repair is minimal.

The LOR in the U.S. remained stable for the first quarter compared to 2020. Significant increases occurred in Arkansas, Louisiana and Mississippi, all of which were affected by winter storms early in 2021 which were also recovering from summer 2020 storms.

The U.S.’s northern neighbors in Canada experienced a significant drop in overall LOR, down 1.7 days from 2020’s first quarter.

Repairable claims in Canada were affected by COVID-related lockdowns and decreased traffic on roads. Less claims gave shops opportunities to make repairs more quickly.
The largest LOR drop was in Ontario, Canada at a 2.2 day reduction, followed by Newfoundland and Labrador, Nova Scotia and New Brunswick.

The report mentions a decrease in Alberta’s LOR, which is attributed to repairs necessary from summer storms, but the decrease was by more than one full day.

Drivable LOR decreased 1.4 days from 2020 in all provinces.

Non-drivable LOR decreased by 2.2 days. The largest decrease of non-drivable was seen in Ontario with almost 3 full days.

Total loss frequency increased from 20.6 percent in 2020 to 21.5 percent in the first quarter of 2021 in Canada.

The largest increase of any age group was in new to three-year-old vehicles, which is attributed to new and newer vehicles having less available comps in the marketplace. Settlement with these vehicles could be delayed as a result while carriers and customers need more time to negotiate.

Ontario’s LOR increase is attributed to the increase in total loss volume. In the first quarter of 2021, Ontario saw a 25.3 percent total loss ratio, the highest in the past five years for any quarter. Additional volume would affect the efficiency of processing total loss claims.

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