CCC Intelligent Solutions Inc. (CCC) has released its Crash Course Q3 2025 Report, offering a data-driven look at how tariffs, inflation, consumer financial strain, and vehicle technology are converging to reshape the auto industry. The report draws on insights from 300 million claims-related transactions and millions of casualty claims processed through CCC’s platform.
According to CCC, these combined pressures are creating what the report calls a “supply chain reaction,” altering the approaches of original equipment manufacturers (OEMs), suppliers, repairers, and insurers.
Kyle Krumlauf, director of industry analytics at CCC and co-author of the report, noted: “Today’s auto industry is navigating unprecedented economic turbulence – from pricing pressures to sourcing challenges to household financial strain. These forces are converging in ways that represent not just cyclical pressures, but a structural shift.”
Key Findings from Crash Course Q3 2025
- Tariffs driving cost pressures: Average part prices, which had remained flat from 2022 to 2023, rose more than 4% year over year in March and April 2025. CCC links the increase to tariff-driven supply chain disruptions.
- Repair costs continue to rise: The average total cost of repair (TCOR) reached more than $4,730 in 2024, up 3.8% year over year, with an additional 1.4% increase in the first half of 2025 compared to the same period in 2024. Labor rates increased 3.1% year over year.
- Consumers shift to higher deductibles: The prevalence of the $500 deductible dropped by 6 percentage points since 2021, while $1,000 deductibles rose nearly 5 points. The report attributes this to financial strain and shifts in consumer insurance choices.
- Total loss share remains elevated: More than 70% of total losses in 2024 involved vehicles seven years or older. Q1 2025 showed a 1-point increase year over year, reflecting an aging U.S. vehicle fleet and declining used vehicle values.
- Diagnostics and calibrations now routine: Nearly 87% of direct repair program (DRP) appraisals included a scan in Q1 2025. Just over 32% included a calibration, up from nearly 24% in the prior year.
- Calibrations extend cycle times: Repairs with multiple calibrations averaged more than 17 days from vehicle-in to vehicle-out. Those with one calibration averaged 15.5 days, while repairs with no calibrations averaged 13 days.
- Casualty severity outpaces inflation: Average third-party bodily injury payouts reached $28,700 per injured party in Q1 2025, a 7% year-over-year increase. First-party personal injury protection (PIP) outcomes also rose 10% year over year, with radiology, surgeries, and evaluation procedures driving the growth.
Report Availability
The Crash Course Q3 2025 Report is part of CCC’s ongoing initiative to provide data insights into industry challenges and shifts. The full report is available through CCC Intelligent Solutions.
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